Begging for Workers - May 12, 2021
At 6.1% as of April, the unemployment rate remains elevated (U.S. BLS). Yet, companies are growing increasingly desperate to find workers.
Over the last two months, the number of job openings has soared by over 1 million to 8.1 million as of March (U.S. BLS, latest data).
- It’s far ahead of the 7.6 million record in November 2018.
In the April NFIB survey of small business confidence, “44% of business owners reported job openings they could not fill,” a fresh record.
In April, employment rose 266,000 (U.S. BLS), far below an expected 1 million increase. Jobs are available, but hiring has slowed.
Have you been to a store or a restaurant that has sported multiple ‘now hiring’ signs? What seems to be the problem?
Economists point to childcare issues and generous jobless benefits, which may discourage the unemployed from seeking employment.
While a mismatch in job openings and available workers may slow economic growth, we believe investors should continue to focus on longer-term fundamentals.
A well-diversified investment strategy takes multiple factors into account, including risk, taxes, and your financial goals.
If you are adhering to such a plan, we congratulate you because you have chosen the narrow path. It’s your roadmap to your financial goals.