The labor market continued to tighten, and wage pressures picked up further. Contacts reported record-high demand, as well as wage increases, for engineers with experience in cloud computing. Contacts also noted that technology and non-technology sectors are increasingly competing for workers with the same advanced skills. In the financial services sector, wages for unskilled entry-level positions increased markedly. Labor shortages in the construction industry persisted, driving up wages for skilled workers. Demand for labor in the agriculture industry continued to outpace supply, putting upward pressure on wages. One contact noted that growers continue to automate production where possible. Contacts in the pharmaceutical manufacturing industry reported relocating workers and operations to lower-cost locales outside of the District.
Once known for casinos and brothels, Reno is now attracting corporations drawn by its low costs, lenient permitting rules and relative proximity to Silicon Valley. Other big corporations that have recently built data centers, factories and distribution centers at the industrial park include Apple Inc., Wal-Mart Stores Inc. and eBay Inc.
A Pennsylvania call center operator plans to lay off 135 nonunion workers at its office in North Highlands. In mid-2012, ACT announced the opening of the North Highlands calls center, with an initial 500 employees and announced expectations of filling as many as 2,000 jobs.
Rancho Cordova’s role as a hub of the aerospace industry will soon end. Aerojet Rocketdyne Inc. Monday said it will eliminate 1,100 of its 1,400 local jobs over the next two and a half years, and will shut down manufacturing operations. Aerojet Rocketdyne said plans to consolidate its California-based Sacramento and Vernon operations and Gainesville, Va., sites while centralizing and expanding its existing presence in Huntsville, Ala. with a new state-of-the-art manufacturing facility.
The company said Monday that it’s ending negotiations with the Bay Area city of Vallejo to buy land for an automobile assembly plant.