What Emerging Workforce Trends Mean for Investors
Labor Market Still Showing Signs of Strength
- The unemployment rate in April fell back to 3.4 percent, while the labor shortage fell to 3.7 million
- A decrease in immigration and of older workers in the labor force are helping sustain the shortage
Diminishing Wage Pressure To Aid Inflation Fight
- Despite the shortage of workers, wage growth has fallen off recent highs to 4.3% annually
- Construction wages are 15.3% higher than before the pandemic, creating additional delays in construction
What This Means For Investors
- As wage growth is a major concern of the Fed, a slowdown may signal that it is time to pause rate hikes
- Certainty in the interest rate climate would help investors, developers and lenders achieve stable financing outcomes on projects and plans
*Through April; job openings through March
Sources: Marcus & Millichap Research Services, BLS
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