Las Vegas, NV – With the U.S. unemployment rate falling to a 48-year low, Michael Shustek, a real estate investment company executive, says now is the time for employers to consider the importance of employee retention. The United States unemployment rate has fallen to 3.7%, its lowest since December, 1969, and business owners are optimistic heading into 2019.
“Obviously this is another positive sign that reinforces a booming economy,” says Shustek. “At the same time, there is more than meets the eye to the jobs situation as we approach full employment. Business owners must be mindful of the increased competition for talent, treat employees well and be aware of pitfalls that may take place with growth. Remaining diligent is the key to continued success.”
The employment news certainly is good for families and competition for quality employees generally drives wages higher.
“Although wage growth has lagged in this recovery, wages should now accelerate with the overall tightening of our labor market,” explains Shustek. “The more disposable income each household receives and spends, more dollars flow through the U.S. economy. This exchange of money between individuals and businesses is crucial to sustained economic growth.”
With the report that Amazon is raising its minimum wage to $15 an hour, this is another sign of people on the lower end of the wage ladder also benefiting.
“When lower-earning employees are both gainfully employed and receiving higher wages, this allows for positive effects on government assistance programs since there is likely less reliance while increasing tax revenues,” said Shustek.
At the same time, Shustek warns of the drawbacks associated with full employment in this country.
“When there appears to be as many job openings as job seekers, it may result in a talented individual taking a higher paying position that isn’t a good fit,” explains Shustek. “For some employers, it becomes increasingly difficult to hire the right employee with relevant experience to fill a job opening. This is especially true for positions that require extensive experience with a given skill set. It may end up proving costly for organizations when the wrong person is hired instead of waiting — or paying a better salary – to bring in a higher-skilled employee.”
Shustek offers that now is the time for employers to consider steps associated with retention of employees in this highly competitive workforce.
Media contact: Chuck Malkus, of Malkus Communications Group www.malkuscommunications.com