The Intelligence from The Economist The Intelligence: Workers of the world, delight!
Jan 4, 2024
Christian Ogendail, The Economist's European Economics Editor, and Matthew Hull House, Britain correspondent, dive into the shifting labor market dynamics where aging populations and tech advancements are creating a golden age for workers. They discuss Britain's upcoming elections, contrasting leaders Rishi Sunak and Sakhir Starmer. Additionally, they explore India's burgeoning whiskey industry, showcasing how local brands are transforming into international contenders with unique production methods.
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Shifting Labor Dynamics
- The mid-2010s were a challenging time for workers due to the financial crisis and weak wage growth.
- Now, conditions have improved, creating a "golden age" for workers in the rich world.
Demographics and Labor
- The biggest change in labor markets is demographics, specifically aging societies leading to labor scarcity.
- This scarcity increases worker value and reverses the trend of outsourcing to countries like China.
Worker Empowerment
- Increased worker demand empowers them to be more demanding in the job market.
- This has led to faster wage growth, especially in countries like Japan and the US.