Earlier quoted context omitted.
No, sometimes there is no zone of possible agreement (value produced is below market rate). In this case you can both have shortage and unemployment at the same time. Example, you have labor force of 10 people. All jobs have mandatory stay of 2 years. 6 companies have an opening each that pays 1 mil/year. The openings are staggered so 3 jobs are available on odd and 3 on even years (and last 2 years). 50 jobs are pos…
>The minmax solution is to not take a 100k job because of opportunity cost (you won’t get a chance at the 1 mil job next year). So you have both 40% unemployment and massive labor shortage (56 openings but only 10 viable candidates). >These salaries represent value produced to company and cannot be raised. This means the company needs one employee at minimum. If it loses that employee it will not produce value. There…
Maybe not -- for example, we don't know if there are other permanent employees already, and then, not hiring more people can be acceptable