Regardless of what the economists say, recruiters and business owners across the United States have been saying it for months: there are simply not enough workers to go around.
From technology professionals to summer lifeguards, companies are facing the tightest labor market in recent memory and are competing for employees with higher salaries, benefits and other enticements.
John Challenger, a Chicago labor market researcher, has been sounding the alarm in recent weeks, urging President Bill Clinton to call a labor summit to avert what he says will be a crisis that will hurt US global competitiveness.
Although the government reported last week that the US economy created only about 11,000 jobs in June, Challenger said the figures belie the reality of the labor market.
"While some interpret government labor data as showing signs of loosening, they apparently failed to talk with desperate human resource executives who spend their days scouring the nation for skilled workers," said Challenger.
"The labor shortage may in fact be worse than it was even a few months ago."
Leonard Berger, who operates three hotels in the beachside community of Ocean City, Maryland, has stepped up recruiting abroad for hotel, restaurant and poolside staff.
"There is a shortage of workers," said Berger, who has expanded recruiting efforts for summer help to as far as Hong Kong, Romania and the Czech Republic.
One of the most difficult tasks, he said, is finding enough lifeguards for monitoring pools and beaches.
"We just raised lifeguard pay to eight dollars an hour, that's a dollar more than we were paying last year," said Berger, who is sometimes forced to use pool attendants training to be lifeguards to fill in.
In addition to the tourism industry, one industry group says the United States needs more than 800,000 high-tech professionals. Shortages are also reported by employers who need teachers, truck drivers, nurses and many other kinds of workers.
The situation has forced companies to raise wages and improve benefits. A Conference Board survey of 600 companies found salaries in major industry groups would rise four percent this year and next despite efforts to contain compensation costs.
A Wisconsin Manufacturers and Commerce association of companies in the Midwest state found 74 percent having trouble finding employees, and that a majority were offering some types of incentive pay to attract or retain workers.
"Wisconsin businesses are coping with the labor shortage by making extraordinary commitments to higher pay, training, flexible work schedules, incentive pay, bonus programs, and benefit plans," said association president James Haney.
Nationally, the Labor Department reported last week that the unemployment rate dipped to four percent from 4.1 percent in May and that the pool of available workers -- people unemployed but who would take a job if offered -- shrank by 349,000. Average hourly earnings gained 0.4 percent.
The Federal Reserve Beige Book report in June said labor markets are "tight" across the country, and that businesses across the country reported "worker shortages and difficulties in recruiting and hiring."
Federal Reserve policymakers are watching the labor market closely to see if these wage pressures are resulting in higher inflation for consumers.
For Berger, the Ocean City hotel operator, the answer is clear: "When wages go up, probably pricing is going to up too."
The worker shortage appears to be helping soften attitudes about immigration, say observers.
Congress is being lobbied by industry groups to ease immigration restrictions both for skilled and unskilled workers -- WASHINGTON (AFP)
© 2000 Al Bawaba (www.albawaba.com)
