Daily Management Review

NABA surveys reveals shortage of skilled labor in the U.S


07/20/2015


A NABA survey has lifted the veil of uncertainly from a section of the U.S economy, revealing that 35% of companies surveyed felt a shortage of skilled labor. This is naturally good news for those who are already employed since it is very likely that they will see fatter paychecks. However, it does not bode well for the U.S economy as a whole.



According to a just released survey, employees in the U.S are finding it increasingly harder to employ skilled workers. This implies that those currently employed will most probably see their salary rise, in the near future.
 
A survey conducted by the National Association for Business Economics threw out the surprising result that of the 112 participants 35% felt a shortage skilled labour in the second quarter of this year ending July 2015. The figure stood at only 25% during April.
 
Chairman Jim Diffley, who is also a senior director at IHS Economics said, "The panel reports markedly increased shortages in the July survey, especially of skilled labour."
 
The NABE survey is the latest suggesting a tightening of conditions in the labour market. In early July, the National Federation of Independent Business had said that of the 44% of small businesses who were wanting to hire found few if not any qualified applicants for the positions that they were trying to fill.
 
Although job opportunities have gone up and the market accelerated, it has not translated into stronger wage growth. The unemployment rate too has dropped to a seven year low.
 
The NABE Survey has also reported that the share of companies who anticipated the increase in the wages in the next three months have actually grown by 3% from 46% to 49%, during the April to July period.
 
"As an economist watching the economy, we're somewhat surprised that wages pressures have been so muted to this point," said Diffley. "We do expect an acceleration and in fact think it necessary to continue the recovery."
 
The share prices of those companies who have reported an actual increase in wages during the past three months have remained at 42%. Last year, during the same period they had reported a wage increase at 43%. This year, thus is just slightly lower. This 1% difference is probably not material.
 
The NABE survey has included a broad spectrum of business concerns in its survey including, finance and services industries, those which produce goods, as well as transportation companies. Of all the companies surveyed, 43% have a headcount of more than 1,000 employees.
References:
http://www.reuters.com/article/2015/07/20/us-usa-economy-labor-idUSKCN0PU07J20150720







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