Economists believe the rush for chefs and other workers will ease as the economy calms down and the pandemic subsides.
Duncan Weldon, UK economic correspondent at The Economist, shared an article on fears over wage inflation and demanding that employees be led astray as it is too early to worry about labor shortages. post-Covid work. Instead, economists believe it should be an opportunity for employers to understand that work is not a commodity but a relationship with people that can be built or lost.
As the pandemic restrictions were lifted, employers in the United States, United Kingdom, Germany and elsewhere began to complain about labor shortages. While some wanted the government to step in and remove unemployment benefits that could discourage workforce participation in the labor market, others in the UK are demanding a ‘coronavirus recovery visa’ which will allow workers migrant workers in the country to provide entry level opportunities.
Experts say, however, that it is too early to complain about the shift in the balance of power between labor and capital. For example, around 17% of the workforce continues to face a wage freeze, while minimum wage increases have risen from 6.2% in 2020 to 2.2% in 2021.
Labor is not a commodity that can be picked up and abandoned at any time. Rather, it is a relationship with people that can be sustained or wasted. https://t.co/4NjwLNSWrO
– Sarah O’Connor (@sarahoconnor_) June 15, 2021
Brett House, vice president and deputy chief economist of Scotiabank, retweeted an article on new declining Covid-19 cases in Latin America (Latam) signaling economic growth and recovery, but with lingering uncertainties and surveillance clouded by the pandemic.
Economists stress the importance of controlling the pandemic in order to reap sustained growth, as the virus crisis makes it difficult to interpret monthly growth and inflation indicators. In addition, political developments have produced uncertainties that financial markets have incorporated. For example, Peru reported a decline in the currency ahead of the June 6 presidential election.
According to the data, Chile has experienced strong growth due to its remarkable vaccine deployments. Still, the country’s growth faces uncertainty amid health officials urging the reinstatement of a lockdown in Santiago. However, experts say its performance provides a basis for assessing a sustained economic recovery, which also underscores the importance for other countries to speed up their vaccination campaigns.
– Maison Brett (@BrettEHouse) June 14, 2021
Adam Posen, economist and chairman of the Peterson Institute for International Economics (PIIE) retweeted Japan’s Covid-19 stimulus packages that exceeded $ 2.7 billion, which is more than 50% of its gross domestic product (GDP ). However, this amount included non-government spending and other measures that are unlikely to have a direct impact on aggregate demand. As a result, the size of the stimulus packages drops to just 16% of Japan’s total GDP.
The data further confirmed that the East Asian country spent less on the Covid-19 revival than the figures suggested, such as $ 1.1 billion in April and May 2020 in economic and additional measures respectively. , and about $ 1 billion in December 2020 in economic measures.
Japan’s pandemic stimulus packages have exceeded around 300 trillion yen, or more than 50% of its GDP. But that includes non-government spending and measures unlikely to have a direct impact on aggregate demand.
Taking this into account, the package size shrinks to just 16% of Japan’s GDP. #PIIECcharts pic.twitter.com/xj4mrYg468
– Peterson Institute (@PIIE) June 16, 2021