As Economy Improves, Labor Shortages Threaten

While much of the country is still struggling with higher-than-normal unemployment, some key sectors are facing the opposite problem — labor shortages.

Employers are already having trouble finding workers in fields ranging from agriculture to high technology. John Challenger, CEO of global outplacement firm Challenger, Gray & Christmas, says it’ll be at least another five years before shortages become widespread. But he says they’re on the way.

“In March, there were 33 metro areas with unemployment rates under 5%, that’s at least full employment.”

Increasing numbers of workers are feeling confident enough about the economy to quit their jobs and look for work elsewhere. Challenger says the quit rate is now more than 2 million per month.

“Not only is it becoming more difficult for employers who are looking to find the right people for the high number of job openings, but numbers like these also reveal that employers are having a harder time hanging onto the employees that they have.”

West Texas is home to the nation’s tightest labor market. The high demand for oil and construction workers has pushed Midland’s unemployment rate down to barely 3%.


Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined News 88.7 in January 2011. Since arriving in Houston, he has reported on the many changes wrought on the region’s economy by the revolution in domestic oil and gas production. His non-energy reporting runs the gamut from white-collar crime to cattle ranching. His work has aired on...

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