Article by Thomas Ferguson and Servaas Storm
The
McKinsey report's highlighting of an extremely high job vacancy ratio
in recent years does not reflect the true state of the U.S. labor
market.
Excerpt:
"Every so often a publication comes along that more or less
perfectly captures the Zeitgeist of world business elites. So it was on
the 26th of June when the McKinsey Global Institute issued a new report:
“Help Wanted: Charting the Challenge of Tight Labor Markets in Advanced
Economies.”
The message its few pages of charts and text deliver is dire indeed:
“Labor markets in advanced economies today are among the tightest in two
decades, not merely a pandemic-induced blip but rather a long-term
trend that may continue as workforces age.”
However, "There is
no doubt that the rise in the job vacancy ratio is spurious, i.e., not
related to real labor-market tightness, but instead most likely caused
by a sharp increase in manipulative job postings."
