The article focuses on the current industry problem that has seen employers run short of workers. It uses Western Building Products as an example of the industries that are grappling with the issue. Although the labor shortage has profited marginalized groups such as the African Americans, Latinos and Americans with an average high school degree, industries cannot find people with sufficient skills to fill the most significant positions. The article also addresses the issue of entry-level wages for workers pointing that there have been debates on the need to raise it from a staggering $12.50 to $16 per hour. However, employers argue that an increased wage is directly proportional to improved work productivity. Trump’s new trading policies continue to cause anxiety in all facets of the economy. For instance, new tariffs will have an increased cost on building materials used to finish doors. The main concern moving forward is on how to bring in more adult workers despite the tightening economy.

Economic Principles

People always want more although resources are limited. Scarcity is a significant problem discussed throughout the article. Employers lack skilled personnel, and the current batch of employees lack the required incentives for job advancement and increased wages. As a result, the decisions made by the two groups reflect the economic principle of choice. Research shows that most employees always have an option of seeking higher pay and more responsibility when their present job is not as rewarding. Employees want to grow in their current positions, and the only way to achieve this is to assure them that they can do specific tasks and responsibilities at work. The employers choose to hire low skilled employees at a lower cost while the employees forfeit their jobs for other opportunities that offer the most benefits. The same scenarios reveal the principle of opportunity costs in that, as workers seek other jobs that provide satisfaction and advancement, they have to give up their current jobs. Their current jobs are the best next alternative being that many others could fill such positions and it could also offer other incentives moving forward.

People respond to incentives in a predictable way. The current economy reveals that there are negative incentives that have diminished employees’ oomph and satisfaction at work. The fact that many consider changing jobs shows that workers are seeking places that offer the best incentives that can guarantee growth. There are also workers who believe that they gain the greatest reward when they have more responsibility and the current company trends show that workers are not as engaged as they are supposed to be. However, with the uniform change in work incentives, there is an equally consistent change in the worker’s response. Economic systems influence people’s choices and incentives. In light of the current trade policies and the impending Trump’s tariffs against Chinese goods, the job industry is most uncertain, and it cannot dish out any positive incentives to its workers. Also, there is an imminent increase in the prices of some goods and resources which will ultimately affect choices made by employers and their workers. Economists report that the current market climate does not create favorable grounds for employees to be promoted at work, a factor that causes resentment and lack of motivation among many thus negatively affecting their productivity.

People specialize in the production of certain goods and services because they expect to attain profits. For instance, Western Building Products seeks to open a bigger factory with the hope that it will make profits based on its current market trends. The company enjoys a hiring from prisons and even high schools, and this enables it to tap into necessary skill base for enhanced productivity. Moreover, the factory currently has a substantial wage for employees and steady profits which only point to increased gains in the coming years. Although there are anxieties due to Trump’s proposed tariffs, the company foresees a broader choice of goods that could have a positive effect on its current growth hence the idea that voluntary trade creates wealth. However, the consequences of such a choice lie in the future. Economic analysts postulate that the current economic times are ripe for certain rush decisions regarding hiring by companies and expansions. The idea is that the present circumstances will motivate the Central Bank to come up with better reforms that will address the issue of low hiring, wages and trade policies. Current choices by the incumbent government will call for a need for better trading policies and new strategies to solve the low recruitment issue. Also, looking back on the recession, there have been significant choices made as a result of it, and these have been of great benefit. For instance, due to the slow hiring of skilled workers, workers who were affected the most like the African Americans were able to secure jobs with various employers adding up to 27,000 manufacturing jobs in November and over 300,000 in the past year (Cohen n.p). The statistics show that people are likely to adjust in the future as a result of today’s economic choices.

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