No doubt about it, the U.S. economy (and the USA) is back! With the burden of excessive regulatory overreach at the Federal level on the decline and tax cuts and other business-friendly policies taking hold, businesses want to expand. For the first time in recent memory, there are more jobs to fill than there are qualified people seeking jobs.
The summary and economic end-result is a growing labor-shortage. The laws of supply and demand have not been repealed and sooner or later, wages are likely to be bid up at an increasing rate. As well, the effects of this are likely to “trickle down” – perhaps broadly – across our economy. How much (and for how long) will businesses see fit to “eat the unpleasant sandwich” before they start increasing their prices at an accelerating rate to protect margins?
Keep an eye on the gauges of inflation, the Federal Reserve’s tea-leaves, and changing policies.
America’s labor shortage is approaching epidemic proportions, and it could be employers who end up paying.
A report Thursday from ADP and Moody’s Analytics cast an even brighter light on what is becoming one of the most important economic stories of 2018: the difficulty employers are having in finding qualified employees to fill a record 6.7 million job openings.
Truck drivers are in perilously low supply, Silicon Valley continues to struggle to fill vacancies, and employers across the grid are coping with a skills mismatch as the economy edges ever closer to full employment.