Worcester Business Journal

10 Worcester Business Journal | October 11, 2021 | wbjournal.com breadwinner for their households. "When we think about a labor market, there's some degree of supply done by the workers … then there's the demand by the firms, the number of workers that firms want to hire," said Wayne Gray, professor of economics at Clark University in Worcester. "Both of those numbers depend on the wage. At a very low wage, firms might be happy to hire a lot of workers, but a lot of workers may not want to work." Consequences In the great debate about labor shortages, employers and politicians have been quick to point fingers at the temporary, pandemic-induced increase in national unemployment benefits, which ended in Massachusetts around Labor Day. Although economists are keeping an eye on what happens to employment levels now with the booster gone, it's too soon to say exactly what kind of an impact that cushion was having on the workforce's willingness to take low-paying jobs. Aside from paying bills, the extra unemployment benefits allowed low- wage workers to reassess their career plans, providing a period of time during which they could think about moving on to different, possibly more stable sectors. "at's part of what's happening is the firms who would be hiring those low- wage workers think they can go back to two years ago and now we're back to normal; but the workers have changed, whether because they've had other benefits or found other opportunities," said Gray. In closing the labor gap, particularly in the healthcare and the hospitality industries, a question remains of whether addressing the issue would be as simple as raising wages, and would doing so be smart for the economy. Conversations like these oen prompt ominous forecasts about wide scale inflation, aer all. Economists aren't necessarily convinced. "We've been watching wages for the highest earners go up and up and up, which is why we've seen more wage inequality … Where's the inflation for that? ere might be fewer of them, but aren't they getting paid more?" said Robert Baumann, a professor in the economics and accounting department at College of the Holy Cross in Worcester. Hosting Culture & Community for over 160 years Mechanics Hall Experts at hosting your concert or special event! Call to inquire! Mechanics Hall 321 Main Street, Worcester, MA 01608 508-752-5608 • events@mechanicshall.org Built in 1857 • National Register of Historic Places Together we can make a difference. Together we can end racial inequity. Partnering with our local community to build an equitable and inclusive community. 49 Church St. • Whitinsville, MA 01588 • www.unibank.com 800.578.4270 • Member FDIC/Member DIF Equal Housing Lender WBJ diversity ad.qxp_Layout 1 9/30/20 3:50 PM Page 1 Continued from page 9 Wayne Gray, economics professor, Clark University

• Cover