Demand for Employees is High

I was reading an article today by Lucia Mutikani which talks quite a bit about the demand for employees.  Right now, companies are having difficulty finding employees in almost every sector and it is impeding their ability to produce product, service their customers or expand.

Here are some excerpts from the article,

U.S. job openings surged to a record high in July, but a lag in hiring suggested employers were struggling to find qualified workers to fill the positions.

The monthly Job Openings and Labor Turnover Survey, or JOLTS, released by the Labor Department on Wednesday also pointed to tightening conditions in the labor market, which could spur faster wage growth.

“There are millions of jobs going begging right now in what has got to be one of the biggest mismatches between skills and lack of qualified help available in the nation’s history,” said Chris Rupkey, chief economist at MUFG Union Bank in New York. “The economy seems strong enough to weather a rate hike.”seekers

“This suggest wages should be pressured higher and, therefore, either price increases will pick up or profit margins will be squeezed further,” said John Ryding, chief economist at RDQ Economics in New York.Despite tightening labor market conditions, wage growth has been frustratingly slow. Average hourly earnings have failed to hold above 2.5 percent on a year-over-year basis. Economists say a growth rate of between 3 and 3.5 percent in wages is needed to bring inflation near the Fed’s 2 percent target.

Job openings were almost across the board. There were big increases in construction, retail, leisure and hospitality, as well as professional and business services.

Employees are being more selective and want to find the right fit before accepting an offer.  Therefore, we are seeing companies offering more incentives, higher pay, and flexible schedules to entice candidates!

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