As the U.S labor market continues to recover, salary and wages are also going through changes. This is how the job market influences how much money you make.
Searching for jobs? Are you finding it difficult to wrap your head around the numerous changes going on in the economy?
As your looking for new work, you need to understand how salary and wages are changing. In this article, we’ll cover how and why the U.S. labor market is shifting, and the ways you can come out on top.
The Labor Shortage
In early 2020 many were laid-off or furloughed as a result of the COVID-19 pandemic. Unemployment skyrocketed and wages didn’t ascend much with them.
Now it’s 2021.
Unemployment, while lowering, is at 5.8%, compared to 3.5% in April 2020. That’s still quite high.
Well, when it comes to the job market it seems that the cost of going back to work isn’t worth it to folks. Many are leaving their jobs, which they were able to do from home, in hopes of finding more meaningful stay-at-home jobs.
Others, who are tired of working at home, are leaving in hopes to find jobs with meaningful in-person relationships. This can be a good thing for those pursuing manufacturing jobs and who hope to work in person.
Regardless, with the pandemic hazily looming above the country, a lot of jobs aren’t committing to fully in person or at home. And that leaves folks in a weird position.
Inflation Is Rising
The word inflation should send a small shiver to your spine. It’s rarely a good thing, yet we know it’s always there.
Unsure why? Well, in essence, inflation occurs when the cost of an item goes up (usually these are necessities, such as cars, food, water, or fuel), and to meet the increased cost of living, employers increase their employee’s wages.
Makes sense. If you were able to buy a full cart of groceries last year, but now can only afford half on the same pay, you’d want more. This happens normally and is why companies give out small annual raises.
The problem is that right now inflation is rising rapidly. Certain items like used cars and wood have gone up significantly, costing notably more than they did in January of this year.
So employers are offering raises and higher wages as a result. Add to that the increased demand for manufacturing jobs, and suddenly there’s a good chance you’ll be getting a higher salary than you would have at the beginning of the year.
If employers shoot too high with their salary offerings, the demand for expensive goods will keep increasing, and we’ll have a run-away inflation train.
If the supply of wood, cars, and other necessities normalizes, then you, the employee, makes off with a great salary. It’s predicted these costs will normalize. But no one can be sure when that will be.
New Job: Better Salary and Wages
Now is the best time to get a new position. Demand for manufacturing jobs is up. Salary and wages are flying high, too.
Unsure where to start searching? Whether you’re a degreed professional looking for a change, or someone new to the manufacturing industry, start your job hunt with JSK recruiting.