US firms face hiring difficulties

AFP, WASHINGTON: A growing share of US employers are struggling to hire new workers and some have raised wages as a result, according to a survey released yesterday.

The National Association of Business Economists said its quarterly survey showed members were a little less sanguine about the prospects for strong economic expansion over the next year, although most still expect sustained quarterly growth of better than two per cent.

With unemployment already very low, anecdotal reports indicate employers around the country are struggling to fill open positions and have been obliged to boost compensation to lure in new candidates.

But official figures show only sluggish wage growth and weak inflation—with average hourly earnings disappointingly up less than 0.2 per cent in June—something that has puzzled policymakers at the Federal Reserve, although it has not yet prompted them to alter their course of gradual interest rate increases.

“Slightly over one third of panelists reports that their firms have experienced some difficulty in hiring,” NABE survey chair Emily Kolinski said in a statement.

The survey of 101 NABE members showed rising sales, profits, hiring and capital spending.

However, “Pricing power—or lack of it—and labor costs are generating some headwinds for a significant number of firms,” she said.

The share of firms reporting increased wages rose eight points from April to 47 per cent. But expectations that wages will keep rising over the next three months rose only three points, also to 47 per cent.

US firms face hiring difficulties

AFP, WASHINGTON: A growing share of US employers are struggling to hire new workers and some have raised wages as a result, according to a survey released yesterday. The National Association of Business Economists said its quarterly survey showed members were a little less sanguine about the prospects for strong economic expansion over the next year, although most still expect sustained quarterly growth of better than two per cent. With unemployment already very low, anecdotal reports indicate employers around the country are struggling to fill open positions and have been obliged to boost compensation to lure in new candidates. But official figures show only sluggish wage growth and weak inflationwith average hourly earnings disappointingly up less than 0.2 per cent in Junesomething that has puzzled policymakers at the Federal Reserve, although it has not yet prompted them to alter their course of gradual interest rate increases. Slightly over one third of panelists reports that their firms have experienced some difficulty in hiring, NABE survey chair Emily Kolinski said in a statement. The survey of 101 NABE members showed rising sales, profits, hiring and capital spending. However, Pricing poweror lack of itand labor costs are generating some headwinds for a significant number of firms, she said. The share of firms reporting increased wages rose eight points from April to 47 per cent. But expectations that wages will keep rising over the next three months rose only three points, also to 47 per cent.