One of the biggest themes in the economy lately that we’ve been writing a ton about is creeping labour market tightness.
Evidence continues to show — and investors increasingly believe — that there’s less slack in the labour market that the Fed believes and that inflation will come faster and harder than expected.
The latest evidence comes from the National Federation Of Independent Businesses weekly sentiment survey.
This chart, which was spotted by Conor Sen asks small business owners what their #1 problem is. As has been the case for a long time, taxes and sales are identified as the biggest problems for small businesses. But what’s trending sharply up is the inability to find quality workers. This answer surged last month, to the highest level in years. The number still isn’t as high as it’s been at time in the past, but it adds another piece to the puzzle showing that there’s not as much of a labour surplus as people think.