The unemployment rate dropped to 3.8 percent in May, which is tied at the lowest it has ever been since 1969, according to the latest report from the Labor Department.
“The unemployment rate continues to fall, unexpectedly edging down to 3.8 percent in May. That’s the lowest level since 2000 and indicates a growing shortage of available labor that is encouraging employers to tap underutilized pools of workers, including those without high school diplomas,” writes the Wall Street Journal.
Specifically, the unemployment rate for those without high school diplomas has reached a 25-year record low at 5.4 percent, compared to the 8.5 percent in September of 2016. While the unemployment rate for college grads remained at around 2 percent.
“When employers run out of workers, that’s when people with the weakest bargaining positions get put in the driver’s seat and can negotiate for better pay and get themselves into roles,” said Andrew Chamberlain, Glassdoor chief economist to the Wall Street Journal.
Not to mention, the boom in the e-commerce sector has helped to contribute to the lower unemployment rate for the less-educated.
“Amazon, Walmart and all of the other online giants are struggling to fill these roles because the last stage of the e-commerce pipeline is just getting goods to people. Those jobs don’t require a high-school diploma, they don’t require a college degree in some cases,” said Chamberlain.
Since the unemployment rate is so low, the number of job openings is at a record high.
Although the wage growth isn’t climbing as fast as some economists expected, dozens of major companies have announced pay hikes and additional benefits to try to entice workers. Costco, for example, is paying $14 an hour minimum to U.S. employees.
Author’s note: This is exactly what we thought and hoped would happen. The economy is booming under Trump.