Thread: Nolans
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Old 08-31-2021, 06:53 PM   #32
Heaven
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Originally Posted by Boundary View Post
I'll throw in my 2 cents based on the professional "services" industry in Boston which is also struggling to find talent and leading to labor shortages / overworking current employees, etc. Starting pay is not far off from 6 figures now for a professional services job in boston. And I fully understand it will be different across markets where people will have varying necessities and levels of motivation to work. But for jobs gated behind any sort of qualification (CPA, CFA, bar, etc) there are two easily bucketed main scenarios playing out:

1. Younger folks are making lateral moves to industry or in house jobs/smaller firms that are much closer to 9-5 and away from the big firms. This is leading to an overall decrease in hours worked across the industry and the "shortage" at these firms is delaying projects and driving wages up. Without crazy high expensive office space / entertainment & benefits costs many smaller firms and new players are offering enticing pay packages alongside work life balance if you don't desire to be the 1%.

2. People who are further along in their career many of whom have children and whose lives have been disrupted are getting stretched thin with the additional attention necessary for family. In addition to that, anyone who has been working for 6 years or more has held a great paying job and experienced a unequaled bull run in just about every investment and asset class you can imagine. These people are deciding they can sell the inner city house for eye shattering sums and move else where. Taking an early retirement with literally millions in their 401k/savings as well as home equity while maybe 1 parent continues to works.

My only point being there are labor shortages in every industry. High paying as well as restaurant / retail. Covid really changed things for a lot of people.

Call me crazy, but one of the biggest changes i think driving this whole labor shortage is the imbalance in time vs. money. How would you convince someone that it makes more sense to work a 50 hour a week job or a highly stressful job for 15-20k more over a 32 hour a week job?

I know the lakes region is still relatively affordable, so 15-20k may make the difference for some - but in more expensive markets like Boston an extra 20k a year buys you nothing if you are already making good money. The restaurants you go out to eat at are the same, the house you buy is the same, maybe paid off 1 or 2 years early. I think the disruption in the labor force will be shaking out for a few years to come.
An for some professions, this shortage isn't new. . . it started 5 years ago. I have two almost 70's people working for me. When they decide to stop, there is no one with the needed training to step in.
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