The Employment Market and Wage Inflation
What Emerging Workforce Trends Mean for Investors?
Labor Market Still Showing Signs of Strength
The unemployment rate in April fell back to 3.4 percent, while the labor shortage fell to 3.7 million
A decrease in immigration and of older workers in the labor force are helping sustain the shortage
Diminishing Wage Pressure To Aid Inflation Fight
Despite the shortage of workers, wage growth has fallen off recent highs to 4.3% annually
Construction wages are 15.3% higher than before the pandemic, creating additional delays in construction
What This Means For Investors
As wage growth is a major concern of the Fed, a slowdown may signal that it is time to pause rate hikes
Certainty in the interest rate climate would help investors, developers and lenders achieve stable financing outcomes on projects and plans
*Through April; job openings through March
Sources: Marcus & Millichap Research Services, BLS
