One of the fun things about this site is that I get to tell you "I told you so" for different things and you can look back to see when I told you so. :-) Today, on the news, they confirmed what I began telling you would happen to the job market years ago. As you can tell by looking at the menu bar, I began telling you about this problem in March 2000, almost five years ago.
They simply cannot find enough skilled labor for the increasing demand. The media is telling you it is because so many people are retiring but people have been retiring for decades without this problem, therefore, they can't possibly be right.
The real problem is that the colleges and universities have been lying to scare increasing numbers of people to get college degrees and all those extra people getting those increasingly worthless degrees have been coming out of skilled labor. This means that new skilled labor was not being trained fast enough to replace the retiring skilled labor.
The problem has gotten so bad that all of the vocational schools are full and they still can't meet the increasing need for skilled labor. They project that they will need to train at least 2.6 million new skilled laborers over the next 11 years and this will be a problem for at least the next 30 years.
They are already starting to bid up salaries for skilled labor and will continue to do so for at least the next 30 years. Salaries for skilled labor will continue to climb but businesses will have to get the money for those increasing salaries somewhere other than from profits.
In business, you learn that the single largest overhead item for almost all businesses is labor which means that the best place they can get enough money to cover this rapidly increasing skilled labor salaries will be from other salaries.
In Education Scam IV, I told you that so many more people have college degrees than there are jobs for people with college degrees that more than 80% of today's graduates have to return home with their parents for at least a year because they can't get jobs for at least a year. This condition makes it very easy for businesses to begin bidding down salaries for jobs requiring college degrees because college graduates are so much easier to replace if they won't take a cut in pay. I have told you that this is already happening and it will only get worse as the shortage of skilled labor continues to increase.
I have predicted a number of things will be caused by this problem. First, increasing numbers of young people are going to vocational schools instead of to college for increasingly worthless degrees as the salaries for skilled labor increase. This will mean that colleges and universities will be forced to scale back and begin laying off college professors, convert to teaching skilled labor jobs which will also require firing their current college professors, or go broke putting those same college professors out of work. When the salaries for most skilled labor reaches a point of being significantly higher than the salaries for most college related jobs, this laying off of college professors and colleges going broke will hit epidemic proportions. Most college degrees will become absolutely worthless.
This news item pointed out that many people with college degrees are already going to vocational schools to learn skilled labor because of the demand and increasing salaries for skilled labor. Watch the salaries for college graduates drop really fast in the near future to less than most skilled labor salaries.
Many of today's college professors and administrators will be forced into skilled labor to make a living. Increasing numbers of people will begin using their college diplomas for wall paper or toilet paper because they will be useless.
So skilled labor will surpass college graduates in salaries, colleges and universities will go broke, and college professors and administrators will be forced into skilled labor.