Future Problems for Detroit

The auto manufactories in Detroit have been facing a surplus of workers the last couple of years. These companies have been facing cutback after cutback laying off many skilled workers. This meant that there have been many skilled workers out of jobs waiting for the demand to increase. A new survey shows that the problem for the future of these companies won’t be a surplus of skilled workers but a shortage. Due to the history of layoffs in the industry there are fewer kids interested in the idea of working in a factory. This, combined with the fact that the Baby Boomers are reaching retirement age, means that there will be more people leaving the industry than there will be entering it. Could this lead to an increase in wages for people willing to work in the manufacturing plants?

1 comment:

Dr. Tufte said...

Yes. That is how the price mechanism works.