If you’re a regular reader of financial news you no doubt have read about the country’s current “labor shortage.” I put “labor shortage” in quotes because that’s not really what’s happening. Some businesses and industries are absolutely having a difficult time hiring, not because people don’t want to work but because they don’t want to work for what they’re being offered. Employers who previously were able to staff up and pay non-living wages are shocked that people don’t want to work full time and live in their cars during a pandemic.
Workers finally have a little bit of leverage and they’ve decided to use it. With multiple sectors clamoring for labor, workers have the options and they’ve decided they’d much rather work someplace that pays $15 an hour with benefits and reliable scheduling than be on call for $7.25 an hour and a 10% employee discount.
If your business can’t pay living wages for full-time employees, you probably don’t have a viable business. If exploitation wages are the only way you can turn a profit maybe you need to reevaluate your business plan. Small businesses may need to downsize or raise prices. If you’re wondering where some of these big corporations can find the money to pay a higher wage just remember, CEO pay has grown 940% in the past 40 years. The average chief executive makes 340 times the average worker. The money is there, you just have to pry it loose.
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