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The U.S. unemployment rate is now as low as it’s been since 1969. Some employers fear that it will be more difficult to attract the skilled workers they need.

Record Progress

The U.S. economy has continued to create jobs over the last eight years. In this year alone, employers report adding 208,000 per month. That’s a jump from the average of 182,000 per month last year. The unemployment rate is now at 3.7 percent.

Many wonder when this trend will stop. Martha Gimbel is the research director for Indeed. She said, “Every single time that we predict job growth is going to start slowing and wage growth is going to start picking up in recent years, we haven’t gotten that right.”

Larry Kudlow is President Donald Trump to economic adviser. Answering the question of how far the unemployment rate will fall, he said. “It’s a tricky question, because I don’t think we know.

How Economic Growth Will Affect Employers

So far, this year, the rate of hourly pay has risen 2.8 percent. That level of growth matches the inflation rate. As the unemployment rate continues to fall, however, employers will need to pay higher wages. In a supply and demand economy, workers, especially those with trained skills, will be scarcer. They will, therefore, demand higher wages to work for one employer over another.

A similar sign will be that a smaller percentage of applicants will qualify to do certain jobs. For instance, in some areas, there aren’t enough trained nurses for companies to hire. Pay is not an issue for the locale. Training is. The needs of the employers have outpaced the training of the workforce.

There also fewer people entering the workforce compared to those retiring from it. In June, data comparing last year to this showed a growth of 1.2 percent in people looking for work. That number already fell to .52 percent in September. The population is growing, but the percentage of growth isn’t keeping up with demand of U.S. employers. Likewise, a lower immigration rate means fewer workers available.

As employers start to feel the crunch of a lack of employees, those who couldn’t find jobs before might benefit. Persons with criminal records, for instance, might find new opportunities as employers lower their standards for hiring.