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August 22, 2005

A Tight Labor Market!

Ah. The tight labor market of the Bush boom!

Calculated Risk writes:

Calculated Risk: More on Labor Slack: Ken Melvin directs us to some comments in an article in the SF Gate:

Want a Wal-Mart job? Join the crowd 11,000 apply for 400 openings at retailer's new Oakland store. "It's not about Wal-Mart -- it's about the rest of the labor market," [Stephen Levy, an economist for the Center for Continuing Study of the California Economy] said. "If the rest of the labor market was strong, you wouldn't have 11, 000 people applying for 400 jobs." During the dot-com boom, Levy said, businesses like Starbucks bumped up wages to recruit employees in the middle of a hot job market. But now the situation has reversed, and more people are willing to take whatever they can get.

That sure sounds like slack in the labor market.

Posted by DeLong at August 22, 2005 05:37 PM