I am perplexed as to why retail companies are raising their wages. I understand where the author is coming from to say that they are losing their current working force and want to reduce turnover. However, these low level jobs in years were flooded with people whose education level was above what their job required. If businesses are starting to hire then naturally those with a degree in a specific field will leave a job that doesn't pertain to their field of choice and go to where they have a comparative advantage.
In my mind, retail jobs should be relegated to high school students and those who are marginalized in society (the article listed who fall into that category well). If this is true, instead of raising wages it would make more sense to begin to market their to the proper demographic who do not care if they have benefits (in the short term). Ski resorts do a great job of this as they advertise at high schools for their job fairs as they offer a free season pass, low pay, and no foreseeable future with the company. Teenagers see the free season pass and sign up immediately, I know I did.
What I see this as a good sign for is those with a ba or bs can begin to obtain jobs without relevant work experience. Over the past few years minimum experience has been around 5 years for a decent job. Many new graduates won't have 5 years experience. How could they? They've worked at the ski resort every winter for the past 4 winters of their high school career.
One thing caught my eye is that the article stated inflation is around two percent - yet, our loan rates are rock bottom. How can this be? I thought they had an inverse relationship to one another.
-swe you guys Wednesday! Mmmm Thai food