The Core

Why We Are Here => Economics & Investing => Topic started by: rcjordan on October 09, 2019, 09:30:11 PM

Title: Workers Losing Wage Bargaining Power to Automation
Post by: rcjordan on October 09, 2019, 09:30:11 PM
"Conclusion:
The labor share in the United States has declined roughly 7 percentage points over the past two decades. The decline started in the early 2000s and accelerated during the Great Recession. After the recession, the labor share failed to bounce back despite strong employment gains, particularly over the past few years.

...Having the option to automate jobs strengthens firms' bargaining power against workers. This keeps wage increases stagnant despite productivity gains. We find that automation contributed substantially to the decline in the labor share since the early 2000s."


https://www.frbsf.org/economic-research/publications/economic-letter/2019/september/are-workers-losing-to-robots/
Title: Re: Workers Losing Wage Bargaining Power to Automation
Post by: ergophobe on October 10, 2019, 12:19:41 AM
So this means that even as unemployment drops, it will not necessarily force wages up as it traditionally has.
Title: Re: Workers Losing Wage Bargaining Power to Automation
Post by: Mackin USA on October 10, 2019, 08:51:42 AM
https://www.shrm.org/resourcesandtools/hr-topics/compensation/pages/2020-salary-budget-average-increase-just-above-3-percent.aspx