JFI Director: State's Low Unemployment Trend May 'Bounce Around'
July 25, 2016
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Richard Clinch, director of the Jacob France Institute in the University of Baltimore's Merrick School of Business, tells The Baltimore Sun that the state's recent gains in employment may not show steady progress, given uncertainties such as Maryland's aging workforce.
"The fact that the national labor force increased by so much more [than did the number of available workers in Maryland] – that may be a little cautionary sign, but again that number is going to bounce around," Clinch said.
He and other economists added that the state's positive news about unemployment, including 9,800 new jobs in June, typically results in pressures to raise wages which in turn can slow hiring. But the latest news about wages was somewhat mixed.
"Even though we have low unemployment, I don't expect this to dampen growth or cause significant wage pressures in the near-term," Clinch said. "There are still what I would call discouraged workers out there."
Read the Sun's coverage about Maryland employment rates.
Learn more about the Jacob France Institute and the Merrick School of Business.