Federal Reserve Report Shows Skilled Worker Shortages Push Pay Higher
Reports from the Federal Reserve show that a shortage of skilled workers in a variety of trades are appearing across the U.S., putting upward pressure on pay. Employers are having to pay more to attract workers in construction and manufacturing in several parts of the U.S. In parts of the Midwest, mid-Atlantic region, and the Northern Plains states, transportation workers are seeing somewhat higher pay. And in New York the number of workers quitting to take higher paying jobs is on the rise.
The Fed found that:
- Manufacturers in New England have trouble finding machinists;
- The lack of skilled construction workers has delayed projects in the area served by the Chicago district;
- Delays have also occurred in petrochemical projects in Texas and parts of New Mexico and Louisiana because of a shortage of workers in heavy construction and engineering;
- Truck drivers are in short supply in several areas.
Staffing services are seeing increased demand in several districts. Specifically mentioned were the New York, Philadelphia, Cleveland, Richmond, Chicago, and Dallas districts, covering much of the Northeast, a portion of the Midwest, and all of Texas.
Since the March report there has been a slow but steady broadening in the number of regions reporting wage pressure. The types of jobs has also increased, though only slightly. However, this wage pressure has yet to be evidenced in the monthly U.S. Department of Labor reports. September’s report said wage increases nationally averaged just 2 percent.