As we roll into the middle of Q2 the number of new job openings keeps on growing. The corporate tax cut appears to have gained some real momentum.
This graphic showing 173,000 new job openings is only for the North Texas area. If this momentum keeps up across the country, you will again see a true 4% unemployment rate.
Now some of these openings are not just from existing companies, this rise can also be attributed to a resurgence of people starting new businesses and companies.
PEO companies provide back office support for small and startup companies and they are seeing a 15% growth in their business as well.
When there is a boom of new business starts, it puts pressure on big business to step up and pay their employees. If they don’t, they will lose them.
This competition is where true wage growth comes from. Not from some governmental forces.
At this point we must treat this still as a trend and not the norm. It will take a few more quarters of sustained growth for this to be seen as something that has legs and can officially stand.
This growth and number of job openings reminds me of the historic numbers we saw during the dot.com craze in the 90’s. Wage growth percentage at that time was only rivaled by job creation after WWll.