🦜PerchPulse - USA Market Update July 2022 🦜

A big feathery welcome!!‍

Hello and welcome to PerchPeek’s July 2022 USA Market Update! As relocation experts, we keep as up-to-date as possible on international market trends and factors influencing HR leaders, their teams and their employees, and we've brought this insight into a monthly newsletter.

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Fly-by summary:

• Tech skills shortages - restrictive regulators are making life hard for companies trying to fill high-skilled positions with global talent.
• Rentals are becoming super competitive in key cities, adding extra costs for employees
• Food and fuel costs are increasing, putting pressure on the economy. This should be a focus for employers when caring for their teams‍

‍Talent & Migration - Blockers on foreign talent causing headaches

The United States is still a preferred destination for high-skilled migrants, and demand for talent is soaring. However, the United States is struggling to keep up with the demand because H-1B visa allowances (enabling employers to temporarily recruit foreign workers in specialty occupations) from the government remain extremely low.

In 2022 so far, almost three quarters of H-1B registrations were rejected before an adjudicator even evaluated the application.  This is in complete contrast to countries like the UK and Germany, which are working to encourage more top talent into their economies.

The below graph shows the mismatch that has developed between job openings and unemployed workers in the last year.

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What can we do?

It’s very hard to build a great team when not all of that team can be in the country, however if there is an option to create job openings that are remote initially but may involve moving to the US further down the line - that could be a great way to access people from abroad whilst not completely shutting the door on eventually coming to the US.‍

Housing & Rentals -  Prices rising fast plus extra fees

Renting - demand surges lead to extra fees for tenants.

Demand for lets in key cities like NYC, The Bay Area and in tech hubs such as Austin have surged this summer. This means that rental prices have gone up massively vs 2021, and properties are entering and leaving the market at a rapid rate.

It has also led to additional fees for tenants. In New York City, landlords used to pay the agents' broker fees in return for greater visibility. Now, landlords are beginning to require tenants to pay a broker fee worth 15% of the annual rent. ‍

PerchPeek data on current rental costs:‍

Below is our latest data on rental costs in Manhattan, New York and Austin, Texas

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If you'd like to see rental estimations for another region - reach out to the team via the form at the bottom of this update.

There's a real need for speed in the rental market. We find our movers are going on one day of viewings with their broker and being accepted on the same day - no time to ponder!
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How to help your employees

• Be aware of rental costs and hardships your employees might face
• Offer support where possible with prohibitive broker fees
• Offer work/life flexibility to enable employees to move fast and secure a home

Cost Of Living - Rapid surges in fuel and food

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Unfortunately for the US workforce, costs are on the rise at an average of 8.5% vs the year before. This has been driven by the invasion of Ukraine and resulting supply issues for producers of goods and services.

• The price of gas has increased by over 18% since March 2022
• The food index increased 8.8% year-on-year, the largest 12-month increase in 40 years
  

How to help your employees

See our table below for data on the most and least expensive states in which to live. If there are options for moving people away from the costliest hubs - it may be to your team’s benefit.

Where is it most expensive for employees to live?

Cost of living index from Bankrate as of the beginning of summer 2022:

Where is it least expensive for employees to live?

Cost of living index from Bankrate as of the beginning of summer 2022:

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Business & Economy - Not in recession but confidence falling

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The good news is that the U.S. is not currently in a recession. U.S. payrolls average increased in the first five months of 2022, the unemployment rate is still well below where it was towards the end of 2021, and industrial production is growing solidly.

The U.S economy did shrink by -1.5 % in Q1 2022, however monthly data suggests that there may have been solid growth in Q2 (data not released yet.)

Yet, the price increases in food, gasoline, diesel, and other energy has made inflation the top financial concern for Americans, and this is hurting consumer confidence - meaning more people will delay big purchases such as cars, major appliances, and vacations. This is a risk to businesses in the non-essentials sectors.

The inflation is caused by supply chain concerns, and are heavily linked to companies that rely on Chinese materials in their products. With high inflation, it is expected by some that interest rates will continue to rise in coming months.‍

Conclusion‍

There are many challenges facing the US economy, and you cannot overlook the impact that the cost-of-living increases may have on your employees! By talking to employees and staying close to their problems, companies have a great opportunity to show their support to their best people and inspire loyalty and gratitude in what may be difficult times ahead.

Thanks for reading! See you next month!

Questions About Moving Employees or What We Do At PerchPeek?

No matter where your business is located, or how many employees you have to move, the relocation experts at PerchPeek are standing by at all times to answer any and all questions that you may have about moving and taking care of your most important business asset, your team! Feel free to click here to reach out for a call with us or book a demo to see exactly how PerchPeek can work for you and your teams!

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