Talent Shortage Intensifies as Increasing Inflation May Trigger Larger Pay Increases

Forty percent of global employers are having difficulty filling jobs according to the tenth annual Talent Shortage Survey by ManpowerGroup, and with U.S. inflation rising at its fastest pace in two years, employers may soon be forced to increase wage gains to attract and retain employees.   According to the ManpowerGroup report, "as skills needs change rapidly, employers are looking inside their organizations for solutions, with more than half choosing to develop and train their own people," a significant jump from 2015, when just 20 percent prioritized internal training and development to fill roles and develop new skills.  Separately, the Labor Department reported the lowest layoff levels in 40 years, while the BLS reported prices have increased 1.5 percent over the past year as energy prices have stabilized after a significant drop in 2015.  If gas prices remain at their current levels, overall inflation will rebound to more than 2 percent in 2017 and, combined with the talent shortage, will likely trigger higher wage gains.