I live near an area where there is a large prevalence oil and gas refineries and O&G-adjacent industries. The men and women who keep these plants running work a grueling schedule and are often involved in fairly risky activities due to the nature of the stuff they are dealing with (flammable or toxic materials). Despite this, tons of locals flock to these jobs and there there is a huge surplus of available people who are seeking these jobs. By huge, I mean people testify to applying to these jobs for literal years before they ever get an opportunity (many don’t without connection). Entry level typically requires experience or an Associates degree. I should note that experience is helpful but not critical, the job is not easy but is not rocket science either. These jobs can generally get you to 6 figures in the first year, and most top out around 150K in a MCOL area. The benefits are generally excellent, some even have pensions. Yes, these companies are extremely profitable and I’ve already mentioned that the work is hazardous and has odd hours, but with the massive surplus of willing and able labor, why do these companies still pay so highly?
In: Economics
The posted salary is just an estimate or a bid from the employer.
If the posted salary is exactly at market price, or the equilibrium point of supply and demand, then you will get exactly 1 qualified applicant per job posting. If it is higher, then you get more than 1 qualified applicant per posting, and if it is lower, then you get less than 1.
I assume that the local employers intentionally want more than 1 qualified applicant per job posting and they are ok with paying more than market price in order to achieve that goal. Either that or whoever at the employer was responsible for posting the salary estimated too high and the company never got around to fixing it.
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