Economic research institute e61 has expressed concern that the upcoming jobs and skills summit will place too much focus on training and migration as a way to solve labour shortages and boost wages.
Instead, it argues that workers’ pay and bargaining power can be boosted by government policies that lift competition by encouraging the launch of more new companies and allowing struggling businesses to fail via “creative destruction”:
“What matters is reducing frictions in product and labour markets, to foster the emergence of productive firms to create economic value, and remove barriers to the effective matching of workers to these firms,” [Dan Andrews, a former senior economist at the federal Treasury] said…
