In a flip-flop over prior years, the U.S. is seeing more jobs than unemployed workers throughout the country, recently exceeding the number of added jobs predicted for December. Labor shortages are noticeable in several industries, so businesses are scrambling to devise tactics to increase potential employee interest.
MSNBC reported last week a whopping 312,000 were added in the U.S. in December, exceeding the anticipated 176,000 jobs, while the unemployment rate increased by roughly a quarter to 3.7%. Meanwhile, a Reuters report on Jan. 8 stated labor shortages are spreading slowly.
"Economists say the most convincing signs of labor shortages would be a surge in wage growth," Reuters stated. "While average hourly earnings rose 3.2% in December, that is tepid by historical standards."
As the U.S. labor market tightens, the likelihood of higher inflation from the Federal Reserve increases. Bloomberg noted additional jobs were seen in manufacturing, engineering, logging, petroleum and coal; however, the number of jobs decreased in broadcasting, couriers and messengers, the U.S. Postal Service, nondepository credit intermediation and sporting goods.
"December marked the 111st straight month of U.S. job growth, the longest such streak on record," a Bloomberg report stated.
—Andrew Michaels