McDonald, Krueger on Employer, Worker Sentiment and Wages

The video discusses changes in the workforce over the past 17 years, focusing on unemployment rates and the high demand for skilled workers. Companies are adopting creative hiring strategies, emphasizing cultural fit and soft skills due to the difficulty in finding candidates who meet all job requirements. This has led to multiple job offers for qualified individuals, driving up wages. However, companies are also investing in training to manage costs. The growth of temporary help has allowed firms to address bottlenecks without raising wages across the board, contributing to sluggish wage growth in recent recoveries.

What is one of the main factors companies are focusing on when hiring in high-demand sectors?

• Technical skills

• Cultural fit and soft skills

• Geographical location

• Previous job titles

How are companies managing their hiring budgets while still acquiring skilled workers?

• By hiring only highly experienced individuals

• By reducing the number of hires

• By offering unpaid internships

• By hiring less experienced individuals and investing in training

What trend has been observed in the labor market over the last 25 years?

• Increase in temporary help

• Stable use of temporary help

• Decrease in temporary help

• Complete reliance on permanent staff

Why are companies increasingly using temporary help firms?

• To permanently replace full-time employees

• To fill bottlenecks without raising the entire pay scale

• To reduce the quality of work

• To avoid hiring altogether

What has been a consequence of using temporary help in terms of wage growth?

• Rapid wage growth

• No impact on wage growth

• Decrease in overall employment

• Sluggish wage growth