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The Conference Board predicts future labor shortages

Posted on May 1st, 2014 Read time: 1 minutes

The Conference Board (TCB), a non-profit business research group, predicts the market will soon begin to shift from buyers to sellers. According to their research, unemployment will reach 5.5 percent by late 2015. This trend will then continue, and unemployment could possibly go below 3.8 percent, which would be the lowest the number has been since the 1960s.

These statistics are surprising, but TCB is basing its predictions on several factors. On such factor is many who left the active job market during the recent recession are unlikely to return. Additionally, the decline in unemployment since 2009 has outpaced previous recoveries, which means there is a transition in effect to a shortage of labor.

At such a future time, it is possible many of the problems with labor shortages could be solved by hiring temporary workers. As it stands right now,  the unemployment rate is rising. As of April 26, the number of initial claims for unemployment rose 14,000 to 344,000, which is the highest level it has been since the end of February, according to Marketwatch. Those who are unemployed may eventually find a fit back in the job market through becoming a temp worker with an employer of record. Whether unemployment will rise or fall in the future remains to be seen.

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