In an economic expansion, even an anemic one, deficiencies in human capital surface.  Then employers who seek competent people must offer better pay packets or more attractive working conditions.  Perhaps the less capable can rejoin the labor force, but they will not do as well.
"Entry-level candidates cannot read or follow instructions. Most cannot do simple math problems. What is wrong with the educational system?" one respondent in chemical manufacturing said.

"The ability to find qualified employees is our largest problem at this time," a respondent in fabricated metal product manufacturing said. A respondent in textile product mills expressed a similar sentiment.

Theoretically speaking, the idea of labor quality becoming a pressing issue for employers suggests that economic concerns are shifting from weak demand to tight supply. And that — again, theoretically — points to higher wages for workers. The basic thinking here is that when employers have a hard time finding quality workers, they end up having to shell out more money to attract them.
Via Newmark's Door.

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