In August, UPS announced that driver compensation will increase to an  astounding $170,000 over the next few years following hard-fought union negotia

Full Stack Economics

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2024-11-29 17:00:07

In August, UPS announced that driver compensation will increase to an astounding $170,000 over the next few years following hard-fought union negotiations. And, earlier this year, Home Depot said it would spend $1 billion to increase its starting wage, likely in response to Walmart’s decision to also bump up its starting salaries. 

At the same time, Gallup polling indicates that nearly half of consumers view current economic conditions as poor and are about as pessimistic as they were in mid-2009, when unemployment was more than double what it is today. 

A series of economic shocks—including COVID, pandemic-related stimulus spending, the war in Ukraine, and rising interest rates—have buffeted the economy over the last three years, throwing supply and demand out of balance in many industries. 

Nick Bunker, an economist at Indeed Hiring Lab, told me that sectors were differentially affected by these shocks. Some industries engaged in massive layoffs, while others couldn’t get enough labor. Many occupations expanded but some have contracted sharply.

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