How To Drive Your Wage Up Significantly In A Tight Labor Market

We’re experiencing a tight labor market, and this means great opportunity for everyone. Wondering how you can drive your wage up significantly in a tight labor market? Curious how long you need to keep working before retirement? Read on.

Unemployment is at its lowest level in 50 years since 1969. Why does this matter to you and me? This matters to people across the board, but it especially matters to you if you’re sitting at a job right now, gainfully employed and you’ve been there for a while.

Let me explain why…

A Tight Labor Market

Unemployment has been dropping for a while, so economists expect what’s called a tight labor market. Falling unemployment means employers now have to step up their game to recruit and retain workers. This is when wages begin to drive up, and skilled workers are more in demand. 

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Even thought the unemployment rate is extremely low, we really aren’t experiencing wages rising as expected. We’re just now starting to slowly see wages push up.

Amazon announced they’re raising the minimum wage for all US employees to $15/hr, which is pushing similar companies (like Target, Costco and Walmart) to match that.

Are you making less than $15/hr? This is hopeful for you! This increase by Amazon is an opportunity to continue working part-time and make $15/hr somewhere else. 

Now is the time to dust off that resume because companies are looking!

If you’re someone working at large company making more than $15/hr, and you’re hoping this low unemployment rate will drive your wage up significantly in your current position.. you’re probably misleading yourself.

In general, once you’re in a position with a company, you start making around a 3% increase growth. Rarely once you’re inside a company will you see a significant pay increase unless you move job positions within the company. The second option to find that pay raise is to move to a different company.

It wasn’t always like this. Back when my grandparents were getting jobs, they planned on being in one place for decades, but now that’s an anomaly. The primary way to increase your salary is to jump companies.

Not only is unemployment at its lowest point in a long time, we’re also seeing a record level of job openings right now. There is truly a demand for skilled employees that are really hard for companies to fill. This means opportunity!

I’m worried I’m going to age out of my job position…

One of the main fears I hear from clients is “I’m worried I’m going to age out of this position.” Maybe you aren’t ready to retire, but your company finds a way to push employees towards retirement.

Do some of you have that fear? You know you need to work til you’re 70, but your company won’t be on board with it?

If you’re getting on in years, but want to work a few more years, this tight labor market actually benefits you as well. That means your company is looking for and desiring the skills you have. They need the skill you bring! So that fear you have about getting pushed out? It most likely won’t happen.

This also means you might be able to negotiate if you’re close to retirement. Maybe you want to continue working, but not full time. Market your skills! You have the skills and decades of experience they’re looking for. If you have experience, you’re in demand.

Maybe you can consult part-time, still make a great hourly wage and work less. Maybe it’s possible to pull back and earn extra money that will benefit your retirement. Market those skills you have.

It won’t be like this forever.

Maybe you’re in your 60’s and you don’t know how long you need to keep working full-time. That’s normal.

If you’re looking for a resource to sit down and have a clear picture of how long you need to work, sign up for a free consult.

We want to help you develop that plan for your life.