“The lack of job candidates has prevented some companies from increasing production,” delaying their restart, the report said.
–
American companies are struggling to recruit and therefore to restart at full speed, despite a now high vaccination rate allowing economic activity to resume, according to a report from the American central bank (Fed).
“It is difficult for many companies to hire new workers, especially low-wage workers, drivers (…) and skilled salespeople. The lack of candidates for employment has prevented some companies from increasing their production “, sometimes even forcing them” to reduce their opening hours “, underlines the Fed in its Beige Book, a study carried out among companies.
Therefore, “a growing number of companies” are offering financial bonuses and higher salaries to attract applicants. “Wage growth has been modest,” explains the Fed, but companies anticipate persistent difficulties in the months to come.
With more than half of American adults now fully vaccinated, economic activity is picking up.
Employment has improved, especially in restaurants, hotels, and retail, the Fed said in this survey conducted between mid-April and May 25.
Sign of an upturn in activity, demand for transport services is, except in ports, “exceptionally high”, underlines the Fed.
This labor shortage began several months ago, despite some 16 million people still receiving unemployment benefit. Fears related to the health situation persist, and schools have not all reopened full time, posing childcare problems for parents.
In addition, the Republicans point the finger at the generous unemployment benefits paid in the face of Covid-19, which, according to them, does not encourage people to return to work. These additional aids will be abolished from June or July in the states they govern.
The American Chamber of Commerce is pleading with the federal government, elected representatives of Congress and governors, to help companies cope with this labor shortage.
She therefore calls, among other things, for funds to be allocated to training for recruiting sectors, for financially affordable childcare systems to be developed, and for borders to be opened more widely to immigrant workers.
The number of jobs created in May will be released on Friday, along with the unemployment rate. Analysts expect 720,000 job creations and a small drop in unemployment to 5.9%, but the strong disappointment of April is still in everyone’s mind: only 266,000 jobs had been created, against a million expected.
Companies polled by the Fed also indicated that their business is being penalized by global supply difficulties. And this “intensifies the pressure on costs”, with prices continuously rising.
Inflation in the United States accelerated in April, to 3.6% over one year, its largest increase since 2007, according to the PCE index released on Friday.
–
