Wednesday, May 9, 2018

Modular Home Industry Facing Higher Wages and Shrinking Labor Pool

The U.S. economy added 164,000 jobs in April, and the unemployment rate fell to 3.9 percent - the lowest point since 2000.

The average hourly wage rose by 2.6 percent year-over-year, maintaining a slow pace of growth, according to forecasts.

For the past six months, the jobless rate had clung to 4.1 percent, the longest it has gone without budging since the late 1960s.

The streak defied the expectations of economists, who said the nation's prolonged hiring blitz - an average of 202,000 new positions each month in 2018 - was bound to drive the figure down.

If the expansion further gains steam, analysts at the Fed said the unemployment rate could reach 3.7 percent, a figure not seen since 1969.

Economists say the tightening labor market should accelerate wage growth.

A demographic shift partly explains why employers are struggling to find talent. Baby boomers, which today represent a third of the workforce, are retiring in droves younger workers aren't replacing them.

And although millennials constitute 35 percent of America's workers, they're more likely than previous generations to have attended college - and less likely to have picked up a trade at vocational school. They're less likely to take jobs in construction and manufacturing. Employers in both sectors have turned to raises and high school recruiting to shrink their gaps.


Steve L said...

Good article about the labor force up and coming changes. The factory builders must follow the lead of the automobile factory. Many like Toyota, Honda and others use robots for their assembly line. The materials will change to pre-built assembly components: SIP walls, roof assemblies, elimination of ducting Mini Splits and other packaged items are gaining a foothold. The energy efficient mandates make the factory builders the ideal choice for home products.. The Factory builders will have more inquiries from site builders for their lack of labor as well.

Jurie Lewis said...

Sustainability globally