Shopify recently announced a layoff of 10% of its workforce. Facebook, Google and Microsoft recently decided to freeze hiring. Several other companies have cut jobs.
Although reports of a hot labor market continue, many companies are holding back in the bearish economy.
There is – in some aspects of technology – the dominance of the gig economy and freelancers, but they are still not rigid enough as a general alternative in the job market.
A recent productivity report ranked the top US states. There were also reports of how “More American workers are taking second jobs as inflation rages”, “20% of people earning $250,000 a year are living paycheck to paycheck and “48% of hourly workers in the United States don’t have a single penny in emergency savings.”
There are supply issues in an environment of high inflation.
However, the question is: how can productivity increase?
What is the possible new direction that labor economics can provide to lead to higher productivity, with more labor?
For some employers, labor costs are high. For some employees, wages are low.
There is also a target quota or requirement for those in the available competitive slots, which increases stress and sometimes reduces creativity.
The equilibrium proposition is a work of 2 hours per 3-division in the 12 hours where the wage is less than the minimum wage.
The aim is to have a surplus of workers available for productivity, and also to ensure that working for short periods allows employees – at one level – not to burn out for long hours when there is no has no emergency savings, or who needs a second job or a paycheck. paycheck.
Already, there are plenty of people in the low-skilled field who could fill manufacturing roles for this. There could be accommodation or transportation or waiting areas to return to after working for a short time.
The aim is that things can be made locally, which benefits the economy as a whole, while those with process knowledge step up a notch.
There are also high-skilled jobs, where adjustments in this form are possible, so those who work – follow a pattern but can start and stop at 2-hour intervals, to the high-speed exits needed to stay globally competitive.
Labor costs can be a plus or a minus, but when productivity fails for whatever reason, the reverberation ripples through.