By: Dividend Sensei
More Data Can Solve The Problem And Usher In Higher Wages, A More Dynamic Economy, And Stronger Economic Growth
The key to a vibrant economy and strong wage growth over time is dynamism and flexibility. For example last year in the US about 25 million jobs were lost or destroyed, in addition to about 36 million workers voluntarily quitting (to find better work elsewhere). But thanks to 65.7 million new hires, including tens of millions of positions being created by new businesses or existing ones expanding, 2.3 million net jobs were created. And worker wages grew by between 2.5% and 3.1% depending on which statistical methods you use to measure it. In some states the labor market is so hot that wage growth was 4.7% (Idaho), or even 4.8% (Washington State). Those are 90’s boom time era wage growth. But that doesn’t do you much good if you live in Iowa were wages grew just 0.3% which was below the rate of inflation.
Imagine if you could optimize the job search process, to make it as efficient as Google is at locating and retrieving relevant information? What if you could know instantly what jobs were available in your field and more importantly with your personal requirements, such as benefits, pay, working conditions, and corporate culture. What if companies, rather than spending months, or sometimes years trying to find the right employee for the right job, could instantly know who was qualified in that city, state, or even the entire country. Or to take things one step further, what if companies, both big and small, had access to not just local labor markets, but the entire global labor market. Perhaps there is a company in Paris or Tokyo with an opening that is nearly perfect for you, and that might pay double your current salary, even adjusted for currency and the relative difference in the cost of living.
If we could somehow gather enough relevant data about each job, its actual requirements, and worker skills and wants, could we not create a better system that greatly accelerates the pace at which jobs are filled and by the most qualified workers? I propose that such a system would lead to much faster job creation, rising wages for workers, happier employees, improved productivity, and above all stronger sustained economic growth. But how exactly do we go about creating such a utopia creating solution to so many labor, economic, and social issues?
Well the answer is the topic of my next article.