The labor market continues to tighten as job placement firms say they are having increasing difficulty finding skilled workers.
Wage pressures are growing as skilled workers are finding greater demand for their know-how, according to Gary Rosenberger, a former Wall Street Journal reporter who publishes economic forecasts at EconoPlay Inc.
He surveys job recruiters every month to gain insight on the non-farm payrolls report, which will next be published on December 4 by the Bureau of Labor Statistics. Wall Street economists forecast that unemployment
held steady at a seven-year low of 5 percent in November.
“The hiring torrent swept into November, prodded by a strong seasonal ramp and more urgency on the permanent hiring front in response to what many see as a labor crunch for the ages, recruiters say,” Rosenberger said in a Nov. 24 report
obtained by Newsmax Finance. “Demand is very broad-based.”
The difficulty in finding well trained workers is leading to pay hikes.
“With labor so strained, companies are beginning to poach each other with the only weapon they really have, more money – often substantially more – to force a move,” Rosenberger said.
He cited particular strength in digital age jobs and a decline in lower-skilled employees.
“Old economy jobs – secretaries, print journalists, file clerks, data-entry folks, milk deliverymen for that matter – are never coming back,” Rosenberger said. “New online jobs are skyrocketing while old-style jobs march downward.”
Meanwhile, companies are holding on to existing workers.
“Employers also seem to be more open to offering people a second chance,” Rosenberger said. “What choice do they have if they need an extra body and no one’s lined up outside their gate?”
Rosenberger’s observations are being supported by incoming data on the labor market.
Wages and salaries rose 0.6 percent in October, the largest gain since May, according to a report this week by the Commerce Department.
Wages and salaries grew 5.4 percent from a year earlier, Reuters reported
, better than the 5.1 percent gain in 2014 and double the increase in 2013.
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