Labor Shortage 6

Things are a bit more serious these days. There is actually a physician shortage. The mismatch between supply and demand in nursing is well understood. Service providers like police, firefighters, security personnel, teachers and ambulance drivers (there doesn't appear to be a shortage of ambulance chasers) are the cause of intramural competition for workers between neighboring locales. Where the national shortages are the greatest, the competition goes global.

Many of these profession specific shortages are structural. That is, they are not inherently caused by the population changes we've been discussing. Instead, shifting priorities and social values contribute to the creation of demand that exceeds supply. The changing role of women in our culture makes nursing less attractive. Physicians have lost their earning power. Insecurity breeds a need for bodyguards. No one wants to be a teacher for some reason.

That's why this puzzle is a little difficult to figure out.

It looks like the factors in the current labor shortage include:

• Profession specific dislocation (the distribution of workers is bad)
• Profession specific shortages )just not enough of them)
• Production specific problems (we don't make enough engineers)
• Regional specialty issues (you can't get creative people to move to DC)
• Selection expectations (this is the growth related problem)

Tomorrow, we'll wrap this up.

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