Rising Wages Herald a New Era of Jobless Growth
Futurists have talked for years about an economy based on more automation and artificial intelligence. Thanks to the pandemic, we might finally get it.
Bartenders of tomorrow won’t ever ask for a raise.
Photographer: Anthony Devlin/Getty Images
Current labor shortages might be temporary as workers re-enter the labor force over the next several months, but the higher pay they're earning won't be, given the tendency for wages to be sticky. That's going to make this economic expansion different than the last one.
An expansion starting with high wages and a constrained labor pool will encourage the creation of businesses built around automation and artificial intelligence rather than companies that rely on hiring large numbers of low-paid workers. This poses both risks and opportunities for society, particularly relating to challenges like income inequality.