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Skilled Labor Shortage Could Lead to Rise in Wages

Data from a new survey points to a growing shortage of skilled labor in the United States, paving the way for a rise in wages in the coming months.

According to the National Association for Business Economics survey 35 percent of the 112 economists asked said that their companies had experienced a shortage of skilled labor during the most recent quarter which ended in July. The April survey showed only 25 percent of respondents reporting a similar shortage.

Back in early July the National Federation of Independent Business found that 44 percent of small business who were trying to hire for that month said that they found either none, or almost no qualified applicants for the job openings they had.

The recent uptick in employment resulting in a seven-year low in the unemployment rate, has not followed with an equivalent increase in wages.

“As an economist watching the economy, we’re somewhat surprised that wages pressures have been so muted to this point,” said NABE survey Chairman Jim Diffley. “We do expect an acceleration and in fact think it necessary to continue the recovery.”

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