Tight labour market poses different type of challenge for employers and policymakers via IrishTimesBiz
The low jobless rate poses a different type of challenge, however. It effectively represents a capacity constraint at the heart of the economy. The clamour for more capital spending on infrastructural projects, including housing, is one thing; getting the additional workers to do the work is another.
And, faced with a shrinking pool of labour, employers may need to pay additional wages to attract staff as employees are in a better position to bargain for higher wages. This is keeping upward pressure on prices.
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