C-Suite Challenge 2019: Labor Markets Implications
January 25 | Gad Levanon, Ph.D., Chief Economist, North America, The Conference Board | Comments (0)
C-suite executives are taking notice of global talent shortages. Attraction and retention of top talent was the top ranked internal hot button issue by CEOs in every region of the world. At the same time, wage increases are ranked among the bottom of the hot-button issues across regions. This is in line with current wage data for most regions, but with the wage acceleration in recent quarters in many parts of the world, we do expect this to change in 2019.
Central and Eastern Europe has one of the tightest labor markets in the world
January 17 | Frank Steemers, Associate Economist, The Conference Board | Comments (0)
Central and Eastern Europe (CEE) is the region with perhaps the most severe shortage of labor in the world. Many companies with operations in this region are running into hiring difficulties and labor costs are rapidly rising. While a problem for companies, workers are benefiting and taking home large real wage gains.
The Unemployment Rate Does Not Fully Capture Labor Market Slack
December 13 | Frank Steemers, Associate Economist, The Conference Board | Comments (0)
The unemployment rate may be overestimating current labor market tightness. An exercise on monthly employment changes shows that 63 percent of all newly employed people aged 25 to 54 in October 2018 were not actively looking for a job in the previous month. If employers are looking for slack in the labor market, they should find better ways to source and recruit the people who are not looking for work and allegedly not willing to work.
Is the Goldilocks economy over?
November 28 | Gad Levanon, Ph.D., Chief Economist, North America, The Conference Board | Comments (0)
Inflationary pressures will rise in the coming year even though we project the US economy to slow down in 2019. Rumors that the Philips Curve (low unemployment rate = faster inflation) is dead have been greatly exaggerated. A continuing tightening of the labor market and further demographic slowdown will result in higher producer prices and wages. The likelihood for above two percent inflation rate is higher in 2019 than at any other time in the past 25 years.
Contrary to the Hype—Real Trends in Nontraditional Work
November 02 | Gad Levanon, Ph.D., Chief Economist, North America, The Conference Board | Comments (0)
The perception about the growth of the nontraditional workforce is out of line with hard data. While the number of independent contractors earning income through online labor market platforms has been growing, except for the transportation sector, these platforms represent a tiny share of income and total hours worked in the US economy, and are highly concentrated in certain specific occupations.
Temporary Limitations: Why Europe Uses Temporary Workers More Frequently than the US Does
October 16 | Brian Schaitkin, Senior Economist, The Conference Board | Comments (0)
The share of workers employed in temporary contracts declined from an already low level in 2005. employers still grappling with how to incorporate labor market platforms and other recent technological innovations into hiring practices. Employers continue to value lasting relationships with employees and care deeply about the skills and work habits of those they employ.
Why are labor markets for blue-collar workers tighter than for white-collar ones?
October 16 | Gad Levanon, Ph.D., Chief Economist, North America, The Conference Board | Frank Steemers, Associate Economist, The Conference Board | Comments (0)
The labor shortages in blue-collar jobs are unlikely to disappear any time soon. An important reason: The combination of the US population becoming more educated and the concentration of disability among less educated people is significantly reducing the share of less educated people in the labor force.
Non-Traditional Workers Are Less Satisfied at Work, Especially Men
October 15 | Agron Nicaj, Associate Economist, The Conference Board | Comments (0)
A forthcoming 2018 report by The Conference Board on non-traditional work is set to address the lack of growth and impact alternative work arrangements will have on the U.S. labor market. Hiring workers through alternative arrangements is certainly a viable option for many employers, but satisfaction levels may make it difficult for employers to significantly change their share of non-traditional workers.
Tighter labor markets for blue-collar and low-paid service occupations
September 28 | Gad Levanon, Ph.D., Chief Economist, North America, The Conference Board | Comments (1)
The threat of labor shortages is more acute in blue-collar and low-paid services occupations than in white-collar occupations.The main reason: The working age population is solidly and uninterruptedly growing for college educated, but shrinking for those without a college degree.