Unemployment is one marker that lets us understand whether employers are hiring and there is a level of motivation to return back to work (i.e. those that are counted and actively looking for jobs). When the unemployment rate drops there will be some increased pressure on wages and thus companies will look for ways to save money (We are not yet there in these numbers). When production costs are high is when we experience outsourcing to China and other "emerging" economies. We may consider adjusting our processes to consider the possibility of our neighbors to the south (i.e. MX) to fill some of that low cost transition gap.
As a general supply and demand mechanic, when unemployment rates are high then wages would not feel upward pressure because of oversupply. Even when unemployment rates go down to historical levels it doesn't influence wages 1-1 because companies are relieving wage pressure by moving overseas where cheaper labor rates and low cost manufacturing strategies don't require adaptation. Companies borrowed technology instead of going through the painstaking process of creating it.).
When companies outsource overseas it forces the American worker to compete against cheap wages and borrowed American/international technology that didn't need the capital investment for innovation (In other words, American companies should be careful of corporate espionage and better to create innovation partners with those who can use that technology for fast adaptation in their industries thereby outpacing the value of low cost outsourcing and copying strategies. There are some additional long term benefits to those organizations sharing invention prospects as it helps create economic synergy and long term values for companies and governments).
When labor supply shrinks from an improving economy wages will generally rise (assuming we stop the outsourcing leakage). As unemployment claims decrease and pressure is put on labor supply companies will adjust by hiring from overseas, training, or implementing technology to offset costs. While technology is often seen as something negative to labor it doesn't have to be if technology and a booming economy raises productivity value of skilled labor through wearable tech. enhancements (....versus pure automation independent of human intervention and/or low option opportunities. There are also some benefits to using enhanced human labor because the randomness of mistakes and variability in highly skilled empowered labor can create additional innovation sources that isn't possible when innovation is controlled by the top through pure automation).
I'm not an economist by trade..just more of a generalist so its just a few ideas to ponder. 👃👂
-8.32% Possible Q1 2021 GDP
-You may want to look at comparisons from the BLS between March 2020 to March 2021 HERE.
-If you click the Char tab you can pull a comparison for each state. For example, in Michigan we had a 3.7 to 5.% which is a 1.4% increase since March of last year.
-You can read the Department of Labor press release HERE.
I kind of thought of an idea to sponsor some orphanages overseas to help Mexico deal with a humanitarian crisis. Thinking along the lines of adjusting our foreign policy monies to help the most vulnerable through improved support, education, and opportunities at U.S./International companies that consider relocating parts of their operations through U.S. leadership. A peace dove of sorts that could create greater will and economic coordination between U.S., CAN and MX.
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