Economics & the Work Force.

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"Supply & Demand" is an economic model of price determination in a market.  It concludes that in a competitive market, the unit price for a particular product or service will vary until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted.

The basic laws of Supply & Demand are:

1) If demand for a commodity increases and supply remains unchanged, OR if demand remains unchanged and supply decreases, then a commodity shortage occurs, leading to a higher market price for that commodity.

2) If demand for a commodity decreases and supply remains unchanged, OR if demand remains unchanged and supply increases, a commodity surplus occurs, leading to a lower market price for that commodity.

Q: So how does this apply to job skills?
A: Your skill set is a marketable commodity.

1) If a shortage exists in your skill set, then you are a seller in a seller's market, and your wages will likely increase, because your employer knows that it is likely that you could find a higher wage elsewhere.

2) If a surplus exists in your skill set, then you are a seller in a buyer's market, and your wages will likely decrease (or stay the same), because your employer knows that it is unlikely that you could find a higher wage elsewhere.

Why this is important:

Seeking to thwart these basic principles of supply and demand by artificially raising wages for low-skilled or unskilled labor is counterproductive.  When corporations reward low-skilled or unskilled workers with salaries exceeding their actual worth, there is less incentive for people to acquire skills that are more valuable to the corporations -- why go to all of the trouble of earning an engineering degree when you already earn as much as an engineer?  This is why companies automate, and jobs move overseas -- eventually, the corporations will outsource work to places where a foreign day's labor can be had for less than a domestic hour's wage.

Many low-skill, low-wage jobs and entry-level positions were never meant to be career-builders.  Rather, they were a first step on the ladder of success where job skills and work ethics are instilled and honed.  From then on, experience adds to the demand for skilled employees, making them valuable assets to the corporation.

This is why people acquire skill sets that are both high in demand and difficult to obtain: skills in science (including medical), technology, engineering, and mathematics -- the STEM skills -- translate into higher wages, career longevity, and security in employment.