AI Labor Supply

61.6% of the working-age population were active in the labor force, either working in jobs or looking for them. That is essentially unchanged from the summer of 2020. Wages are soaring. In May, average wages grew at a 6.1% annual rate. In April, they grew at an 8.7% annual rate. Employers are boosting wage offers in order to attract and retain workers, who are increasingly difficult to attract and retain.

Unable to find enough workers, Lee’s Famous Recipe Chicken, installed an automated voice system to take orders. The system never fails to upsell customers on fries or a drink, which has boosted sales. There’s no longer a need for a person to take orders at the drive-thru window. “It also never calls in sick. There’s no way we’re going back.”

A massive shift to delivery and virtual kitchens triggered by the pandemic may mean that some restaurants and some customers will be more willing to use technology that once seemed unfamiliar. Using an app to order at a restaurant table could mean that, eventually, fewer servers will be needed.

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