https://www.wsj.com/articles/another-great-jobs-report-11559839362
What will it take to stop the U.S. jobs machine? Data on capital expenditures and manufacturing are flashing warning signals, while rising tariffs threaten growth. But U.S. small firms in May continued to raise pay, add workers and make plans to hire even more. That’s the encouraging news in the latest monthly employment survey from the National Federation of Independent Business, due out later today.
NFIB Chief Economist William Dunkelberg reports that job creation among the small employers in the survey “remained strong in May,” matching the April reading of a net addition of 0.32 workers per firm. He notes that demand for workers continues to outpace supply at small companies:
Sixty-two percent reported hiring or trying to hire (up 5 points), but 54 percent (up 5 points) reported few or no qualified applicants for the positions they were trying to fill. “Qualified” includes having position-appropriate skills but also encompasses appearance, attitude, social skills, [reasonable] wage expectations and work history. Twenty-five percent of all owners cited the difficulty of finding qualified workers as their Single Most Important Business Problem, equaling the record high.
Employees and employers are bound to have different opinions when it comes to the definition of reasonable wage expectations. Regardless, the tight labor market is forcing employers to pay up for talent. According to Mr. Dunkelberg:
Reports of higher worker compensation were unchanged at a lofty net 34 percent of all firms. Plans to raise compensation posted a 4 point gain to a net 24 percent. Overall, reports of rising compensation are holding at historically high levels.