"When Uber surge pricing never ends" [Henrik Sorensen/DigitalVision via GettyImages]
Check the math... Something strange is happening in US employment. 9M+ Americans are still unemployed, and companies are scrambling to hire as the economy revs up — but they can't find enough people. In March, job openings hit a record 8.1M... but exceeded hires by 2M+. And in April, the unemployment rate jumped. Now, companies are boosting wages to lure workers (and your Chipotle delivery just got pricier).
Now add it up... Average hourly earnings for private-sector employees rose by 21 cents to $30.17 in April, as companies struggled to hire. A few potential reasons workers aren’t returning:
The Hiring Dilemma could have two outcomes... #1: it could help workers and the economy through rising wages — real wage growth has been sluggish for decades. #2: it could become an Economic Dilemma. Wage growth could be canceled out by weaker purchasing power if prices continue to spike. Rising prices especially hurt low-income households. The labor shortage could also slow econ growth. Workers will likely return as benefits expire and schools reopen — but businesses may find it hard to lower wages, which could result in downsizing.