Managing Talent Risks In A Tightening Labor Market

If job numbers are any indicator, many industries in the United States are starting to recover from the pandemic.

In June, U.S. unemployment shrank to the lowest level since the pandemic started, and the economy added 850,000 new jobs, including more than 343,000 in the hospitality and leisure industries.

But in the same month, the U.S. Federal Reserve’s ‘Beige Book,’ a periodic assessment of the country’s economic activity, noted that many firms continued to have difficulty hiring new workers, especially low-wage hourly workers, truck drivers and skilled tradespeople.

According to the report, ‘The lack of job candidates prevented some firms from increasing output and, less commonly, led some businesses to reduce their hours of operation. Overall, wage growth was moderate, and a growing number of firms offered signing bonuses and increased starting wages to attract and retain workers.’

Looking forward, the Fed said, ‘Contacts expected that labor demand will remain strong, but supply constrained, in the months ahead.’