There is a marked increase that has occurred in the demand for labor in the oil and gas extraction industry. The number of oil and gas wells drilled in the United States doubled over the course of a few years reflecting the large incentive given to domestic exploration by both the rise in foreign oil prices and the deregulation of domestic oil prices currently. The demand for labor is derived from the demand for the product thus the increase in the number of drilling crews, geologists and petroleum engineers. This increase has caused the demand curve for labor to shift upward sharply in this industry.
Now lets take a look at the wages and their changes and employment in response to a situation of excess demand in the market. The first is that the absolute level of wages in the industry should rise. This prediction is borne out for this industry. Even the rise in prices is subtracted out by the earnings in real terms which still has advanced significantly.
One would wonder why we in the transportation industry with our wages are languish behind many other industries. It is time that we are entitled to a rise in wages.
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