A Shortage In Available Workers Is Driving Up Pay
When demand for workers is high but the number of available workers is limited, wages tend to go up—and that’s exactly what’s happening now.
July’s payroll report showed employment growth of 255,000 for the month and the Atlanta Fed Wage Growth shows the median worker saw his or her pay rise by 3.6%, Bloomberg reports. That’s the fastest increase since 2009, and rising minimum wages are set to push it higher still.
On top of rising wages, it’s becoming harder for businesses to find good employees—the percentage of small businesses surveyed by the National Federation of Independent Business that say finding quality employees is their biggest problem increased during Q2 to nearly reach the highest point of this expansion. [Bloomberg]