Labor Shortage Looms Over Record Job Creation
- U.S. has added 4.7M jobs through August, making 2021 the best year of job creation on record already
- Despite recovering 75% of jobs lost during the pandemic, there is still a 2.5M person labor shortage
- Roughly 2.9M workers have left the labor force since February 2020, creating headwinds for job creation
Multitude of Factors Creating Labor Shortage
- Expiring Fed unemployment benefits may help fill some positions, but likely not only factor at play
- Some workers retired, others may wait for children to return to school or for COVID to get under control
Labor Shortage a Double-Edged Sword for CRE
- Real estate with employees, such as Hotels and Seniors Housing, face hiring headwinds and wage pressure
- Construction labor shortages limit new supply risk, benefitting existing commercial real estate
- Continued job creation drives spending and housing demand, benefiting Retail, Industrial and Apartments
* Job openings through July; Unemployed through August
Sources: Marcus & Millichap Research Services, BLS
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