Is the tech industry facing a labor shortage?

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With a limited number of H-1B visas available annually, and this talent pool in peak demand, companies are fighting to attract bright, young professionals who are likely to stay loyal. See more on the situation, and how real estate can help at http://www.us.jll.com/united-states/en-us/services/industries/technology-companies/talent-gap

Is the tech industry facing a labor shortage?

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July saw the labor market add 157,000 net new jobs, slower than growth in recent months but still positive and healthy overall. A 13,000-job contraction in government employment, combined with a 5,000 financial activities jobs lost in net terms, were partially responsible for this slowdown. At the same time, sustained talent shortages across markets continue to keep growth more volatile than normal.

August 2018 U.S. employment update and outlook

August 2018 U.S. employment update and outlook

August 2018 U.S. employment update and outlook

With 213,000 net new jobs added in June, the labor market’s expansion now totals 92 consecutive month, placing it among the longest periods of post-war expansion. Remarkably, gains have been found largely across industries, although retail trade posted contraction of 21,600 jobs after showing signs of recovery earlier in the year. A slight boost to the participation rate pushed unemployment up 20 basis points to 4.0 percent, however.

July 2018 U.S. employment update and outlook

July 2018 U.S. employment update and outlook

July 2018 U.S. employment update and outlook

May’s 223,000 net new jobs represented the 91st consecutive month of growth, further extending an already unprecedented expansionary cycle. Since early 2017, the change in employment compared to the previous cycle has been higher than growth in the civilian labor force, leading to rapid declines in unemployment, which now stands at just 3.8%. With the economy showing no meaningful signs of slowdown and inflation rising under the pressure of sustained output growth, the Federal Reserve is on track to continue its program of tightening over the coming quarters.

June 2018 U.S. employment update and outlook

June 2018 U.S. employment update and outlook

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With 164,000 net new jobs, employment growth in April 2018 maintained the year's solid pace. Growth was spread across industries, although professional services emerged as a clear leader during the month, accounting for roughly one-third of all gains. A slight drop to the civilian labor force spread to both employment and unemployment figures, driving down unemployment to a new low of 3.9 percent.

May 2018 U.S. employment update and outlook

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The 313,000 net new jobs created in February represented the highest monthly level of job creation since mid-2016. Growth was found throughout the labor market, with goods-producing sectors such as construction, retail and manufacturing in particular holding firm and, in the case of retail trade, rebounding after months of losses. Gains were also possible as a result of a sharp increase in labor-force expansion, which boosted labor force participation and kept unemployment at 4.1 percent rather than declining further.

March 2018 U.S. employment update and outlook

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February 2018 U.S. employment update and outlook

February 2018 U.S. employment update and outlook

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December 2017 saw 148,000 net new jobs added to the national labor market, below consensus figures but still healthy. Unemployment held steady at 4.1 percent and is expected to stay flat or decline in the absence of meaningful improvements in labor force participation or accelerated expansion of the labor force. A combination of widespread positive fundamentals, from consumer spending to business investment, is keeping the outlook for 2018 optimistic.

January 2018 U.S. employment update and outlook

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Monthly employment growth surpassed the 200,000-mark for a second consecutive month in November, adding 228,000 jobs and countering hurricane-related pauses earlier in the year. Importantly, job growth is still taking place faster than the labor force is capable of expanding and with the participation rate not increasing, placing pressure on employers in primary, secondary and tertiary markets to expand their headcount.

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October saw 261,000 net new jobs added, a rebound from a weak September hit with two hurricanes and an initially negative employment growth figure. Revisions brought September back to positive territory, however, extending the expansionary streak to 84 consecutive months of growth. Although unemployment has fallen to 4.1 percent, wage growth has yet to meaningfully improve, remaining below the 3.0-percent threshold and with most industries seeing a slowdown the rate of annual earnings growth.

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The national labor market saw 156,000 net new jobs added in August, a solid figure but below expectations. Additionally, previous months registered downward revisions to job growth, muting some of the rebound witnessed during the summer. Continuing a trend that has intensified in recent quarters, a lack of skilled workers combined with minimal unemployment and external difficulties such as housing affordability in tech hubs have significantly slowed tech growth over the year. Even with inconsistent inflation, sustained job growth could likely encourage another Federal Reserve rate hike in the near term.

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