May 12, 1999 (The Editor’s Desk is updated each business day.)
It takes more
information to understand labor shortages
No single measure of occupational labor
shortages exists. However, a wide variety of available data can be used to assess
potential shortages. For example, dramatic growth in employment is likely to reflect a
significant rise in demand for a particular type of worker. An unusually low unemployment
rate or rapidly rising wages might signal that demand for such workers exceeds the supply.
[Chart data—TXT]
Used alone however, even this array of statistical data is not adequate to definitively
identify labor shortages. Job vacancy data would be another obvious input to a thorough
analysis of labor shortages, if they are available. But even when such data are available,
it is important to keep in mind that just because employers have vacancies does not mean a
shortage exists.
Plainly, general statistical data on labor shortages also should be combined with
background information on specific occupations and detailed knowledge of the workings of
the labor market. Conclusions about shortages should not be based on general labor market
statistics alone or anecdotal evidence alone.
An analysis of identifying labor shortages was prepared in the Employment Projections
program. Find more information in "Can
occupational labor shortages be identified using available data?" Monthly
Labor Review, March 1999.
Of interest
Spotlight on Statistics: National Hispanic Heritage Month
In this Spotlight, we take a look at the Hispanic labor force—including labor force participation, employment and unemployment, educational attainment, geographic location, country of birth, earnings, consumer expenditures, time use, workplace injuries, and employment projections.
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Read more »