The unemployment rate in Buffalo Niagara has fallen to 4.3%. Normally that would be cause for celebration.
Unemployment has fallen because the local labor force – made up of jobseekers and jobseekers – is about 3% smaller than before the pandemic. That’s a loss of 17,000 potential workers — and that’s a big deal. This means local businesses have fewer opportunities to hire new employees and have to compete even more intensely with other firms to hire a new employee, driving up wages and benefits.
In today’s market, workers really have the upper hand. That’s a sea change from most of the last decade, when workers were plentiful and corporations held most of the bargaining power. Last month, the number of unemployed was at its lowest level in March for at least 32 years.
Essential local business coverage that uncovers the trends, connects the dots, and contextualizes the impact on Buffalo’s economy.
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