Why Tight U.S. Labor Markets Are Here to Stay

From Gary Shilling at Bloomberg.com:

The outlook for the labor market remains bleak. Older Americans are holding on to their jobs longer, limiting openings for newcomers, and employers are cutting costs by extending working hours and paying overtime, rather than hiring.

Layoffs and discharges remain low. Voluntary departures have risen a bit, but are still sluggish as workers stay put in uncertain times.

Meanwhile, job openings have risen rapidly after a collapse, though new hires have increased much more slowly. After firing so many people in the recession and since, employers are waiting to hire the right people with the right skills.

Declining real wages also discourage many from entering the labor force, as does the likelihood that if they do find work, it is often at lower pay. Surveys show that of those out of work six months or more, a third earn less when they find a new job. Those out of work for extended periods also tend to lose their skills...
----
Link: http://www.bloomberg.com/news/2013-07-23/why-tight-u-s-labor-markets-are-here-to-stay.html