Human Capital Briefs

At the outset of 2017, many economists were concerned by the possibility that tighter labor markets would act to slow employment growth. Perhaps labor shortages will trigger the next recession as firms will cut back production in reaction to rising costs. Right now though the LEI is still signaling good economic times ahead. A long period of frustration with talent shortages and rising labor costs would likely be required for labor alone to be the next black swan.

This blog describes some of the trends and recent developments that may impact the prevalence of nontraditional workers in the future. Most trends point to a growing share of nontraditional workers, but some developments are likely to have a negative impact. Even when the direction of the impact is clear, there is a lot of uncertainty about the magnitude of the impact.

The Conference Board provides a state level view of 2017 consumption patterns, using their nowcasts of nominal PCE growth by state.

The economy is likely to keep growing above its long-term 2 percent trend in the next 1-2 years, but a very tight labor market and higher interest rate are likely to pressure stock prices.

In 2015, Pearson launched the “Every Child Learning” partnership with Save the Children to deliver high-quality education to Syrian refugees and vulnerable children in Jordan, and to innovate new solutions that improve the delivery of education in emergency and conflict-affected settings. We are doing this through a combination of program funding, collaborative R&D, and joint advocacy.

With the time to fill positions skyrocketing, some employers may choose to compromise on the educational requirement of their new hires. This blog shows that some companies have already started.

A recent decision by the Delaware Supreme Court raises a question as to whether a plan limit allowing board discretion to grant awards within general parameters will be sufficient to ensure business judgment deference, rather than an entire fairness review.