Mr. Tony Iriti – Economic Development Director for the Hancock County Alliance – made a request for local government’s help to offset a local “Worker Shortage”. I found this interesting on many levels.
I understand many in business feel that if government would only get out of way the economy would thrive. In this case at least, Mr. Iriti is asking for a government solution and government funds to resolve a market problem.
This brings me to the function of a market. Mr. Iriti seems to be representing only one side on the market. Mr. Iriti fails to understand or acknowledge that when it is harder for companies to find workers that means on the other side of the equation workers are finding jobs more easily.
Whenever a business makes the statement that it is unable to find workers, in my mind , I always add the phrase “at the wages, benefits and worker conditions that I am providing.”
As a labor market tightens, workers have more choice where to sell their labor. If the market forces business to raise wages and benefits to attract a workforce than this is a good thing. Maybe the market is finally addressing the gross income inequality that this nation is facing.
As wages for low income workers rise they will become less dependent on government programs; like food stamps. That is good for the whole community.
Our ultimate goal in managing our local economy should not be growth; it should be promoting broad-base middle-class prosperity.
If a business is having issues finding workers then they need to look at what they are offering in the market place. To business I say; get out there and compete. Have faith in the market, let the market work.