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– [Producer] Here, I’ll tell you, thank you.
– This is the Voodoo Ranger Imperial IPA from New Belgium.
I don’t even have to use my ring ’cause, obvious.
That’s a pretty good pour.
Has a bouquet that is sweet, yet rich.
Welcome ladies and gentlemen, it is March.
We made it through February.
Moscow had a ton of snow but good news is I have a new tractor with a 10-foot plow and I love it when it snows.
I pull people out of ditches.
I pushed snow everywhere and sometimes I’ve plowed people into ditches.
Let’s talk about what happened in the labor market in February.
First, February’s total number of job postings declined by 7% from January, (screaming) but remember February has fewer days than January.
So actually February’s daily average was actually higher than January, makes sense.
Not always as sharp as I look.
Second, the BLS just reported that national employment declined by 7% in a single year from September of 2019 to September of 2020.
That is a lot of job destruction in a 12-month period.
But here’s the biggest thing that I wanna talk about today, and it’s really interesting.
At the same time that the national employment declined by 7%, average weekly wages increased by 7%.
Wait a minute, normally, when employment drops wages also drop.
So what’s going on here?
Bottom line is the US is experiencing wage inflation because not enough Americans are working.
– Give me the clapper.
So even though the number of jobs between that September and September timeframe last year decreased, also the number of workers decreased even more.
And that’s the problem.
It means that today there are 6 million fewer people in the labor market than there were in February of last year.
Hence companies are now struggling to fill those open positions.
So to attract the workers they need what are they going to do?
Ta-da, they must offer higher wages, and put it simply, that is supply and demand working in the market.
In fact, we just released a brand new feature that tracks advertised wage.
Now advertise wage could also be thought of as recruiting wage.
What does it take to break momentum and get them into the labor market and into your company?
We found that on average advertised wages grew by 16% in just one year, that’s staggering, one year.
Let’s look at a couple of examples of wage increasing in the labor market.
Nurses, advertised wages for nurses have increased by a whopping 32% since 2018 and are up 9% since July.
Remember that a lot of nurses dropped out of the labor market last year.
So hospitals are having to up their wages to bring people back and get them working.
Truck drivers are another example, the advertised sal-pay attention, Crapuchettes!
Truck drivers, the advertised salary for truckers increased nearly 15% since last January.
Everybody’s shopping online and we need those drivers but the problem is it’s a tough job but how are we going to get all those people?
Well, guess what, higher pay.
Forklift operators, between July and August of 2020 advertised wages for forklift operators in Detroit jumped from $14 an hour to $15 an hour; a 7% increase in one month is a huge increase.
And it’s great for these forklift drivers, but what happened?
Well, Amazon announced an initiative to hire 2000 workers in Detroit at $15 an hour.
When Amazon started posting, the median advertised wage jumped to $15 an hour and it stayed there ever since.
Every other employer has to match them simply to be part of the market, that’s market dynamics at work.
So as employers continue to struggle to find the talent they need, look for those wages to continue to rise.
So much more to talk about.
I’m out of time, not out of beer, but I would encourage you to go check out our monthly job report on our blog and hedge-e-ha, which is the last thing on the iPad.
Happy, (laughing) happy Friday, enjoy the data, enjoy your Friday and have a great weekend.