Companies Struggling to Find New Talent
- After shedding 22.4M jobs during the pandemic, the U.S. has recovered 14.7M positions – Leaving a 7.3M shortfall
- Despite moderately high 5.8% unemployment, employers report difficulties hiring staff as they ramp up
- Enhanced unemployment benefits and rising childcare costs are top reasons people are reluctant to return
How the Labor Shortage is Affecting Economy
- Half of U.S. states will end expanded unemployment benefits in June or July – otherwise they expire Sept 6
- Labor shortages are putting upward pressure on wages, particularly in service industries, spurring inflation
What Impact Will the Labor Shortage Have on CRE?
- Labor shortages weigh on construction, shipping/logistics and the service industry – slowing economic recovery
- Rising labor costs could push inflation high enough to force the Federal Reserve to tap the brakes
* Job openings through March; Unemployed through May
Sources: Marcus & Millichap Research Services, BLS
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