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The growing scarcity of workers will push up wages, leaving more disposable income.
Unlike the latter, trade unions could not rely on the scarcity of workers as leverage in negotiations.
When unemployment falls below a certain level, the scarcity of workers enables them to negotiate higher wages, and inflation picks up.
But that boom has a flip side, and a scarcity of workers may cause problems with customers that could cut into the bare-bones profits of retailers.
Failing that, the consequences could include not only a scarcity of workers and falling demand, but also a collapse of the pension system as the tax base shrinks and the elderly population booms.
[Page C1.] New Orleans Seeks Ways to Lure Workers Ten weeks after Katrina, government officials and business leaders worry that a scarcity of workers is hampering the recovery in New Orleans.
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In India, for example, where labor is thought to be plentiful and the workforce is relatively young, we're already seeing early signs of severe scarcities of workers in certain specialized jobs.
Usually, in such a situation, economists expect a shortage of spare workers to bid up wages, or that a scarcity of skilled workers in some sectors would create inflationary bottlenecks in the economy.
Anecdotal evidence suggests that the scarcity of health workers in Malawi prompts NGOs to offer higher salaries than the government in an attempt to attract health workers to the rural clinics, where many of these NGOs operate.
The wage increases are also driven by a growing scarcity of factory workers.
At the end of April , 26percent of the companies surveyed by the National Federation of Independent Business, which represents 500,000 small-business owners, said their No. 1 problem was still a scarcity of skilled workers.
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