Originally published on June 6, 2024, by Natalie Fidlow, CFA for NAIOP.
“Labor availability trumps labor costs as a top concern in the Eastern Pennsylvania and New Jersey markets,” said David Hickey, global managing director at Hickey Associates. He led experts in a dynamic discussion at I.CON East this week in Jersey City, New Jersey. They drilled down on the region’s data and provided strategies to navigate the tight talent market.
The War for Talent
“Four out of five employers are concerned about the competitiveness of labor and if they can find it,” said Hickey, whose firm extensively studies labor markets for logistics and industrial customers.
Businesses want to locate their facilities in economically thriving areas with low unemployment and high labor growth. This allows them to fill their job openings with the greatest success. Hickey showed that the New Jersey and Pennsylvania region’s unemployment is low and mirrors that of the U.S. overall.
Yet, the available labor pool has low single-digit growth, slower than in some other metro areas, namely the Carolinas.
The COVID-19 pandemic was responsible for population shifts, especially out of New York City. While many people went to the southern part of the country, New Jersey and Pennsylvania actually experienced some growth, particularly from New Yorkers moving to the region.