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
In the case of employment, “supply” is not the total supply of all candidates but the supply of *suitable* candidates; *that* is what the employer is looking to procure. From that point-of-view, the actual supply can be fairly low even when there are thousands of applicants.
I used to work at a huge tech company who bragged that their pass rate was lower than Harvard; though this was facetious because a significant amount of applicants for any given position were entirely unsuitable for it. Thousands of ill-suited candidates would “have a go” whenever any role came up.
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