In the last several years, employees have had their run of the job market. We all know it’s their field to play in these days.

Before the Covid-19 chaos erupted, unemployment numbers had reached record lows. Many companies were competing for top talent at the time.

It seemed all that progress was lost though when, in mere weeks, unemployment reached a fever pitch. Many businesses were forced to close, with some unable to ever reopen or otherwise recover.

But then another reversal came along this time with the infusion of stimulus cash and the Paycheck Protection Program. Then, all of a sudden, the number of job openings far exceeded the number of people seeking work.

At first glance, this looks perfectly peachy for employees. Being in such high demand means they can negotiate higher pay, more benefits, and flexible work schedules. Many companies have adopted permanent work-from-home policies as well.

But for employers, it means higher costs of staying afloat, which means raised prices on everything – and therefore a heightened cost of living overall.

Like all things economic, the labor market is a balancing act. And while I do have to say we’re not anywhere close to being balanced right now, our current situation isn’t a bad one in terms of the recession we’re probably in store for.

This way, there will be options for those laid off – such as has been the case with companies like Tesla (TSLA) and Netflix (NFLX).

As of May, employers posted 11.3 million job openings, according to the Labor Department. This is just a slight decrease from the 11.7 million openings reported in April and the record-high 11.9 million job openings in March.

As The Wall Street Journal reports:

“Employers added 390,000 jobs in May, a robust gain but below the average pace of monthly job growth last year. And the unemployment rate held at a low 3.6%. The Labor Department will release its June employment numbers on Friday; economists surveyed by The Wall Street Journal think employers created 250,000 jobs last month and the unemployment rate held at 3.6%.”

I’d comment further from there, but with everything being as complex, complicated, and up-in-the-air as it is…

I think I’ll just leave it there and move on to our next subject at hand.

More Non-REIT News to Know About 

For months now, air travel has been one of the iffiest methods of transportation around.

Amidst a national pilot shortage, flight cancellations have become the reported norm. With seamless travel looking like a thing of the past, every airline has seen a huge uptick in upset passengers.

As a result, many passengers expected increased delays, inconsistent service, and inconvenient cancellations this past holiday weekend. Thankfully though – and surprisingly – it wasn’t that bad all things considered.

U.S. airlines canceled about 1,400 flights during that stretch, which was about 1.5% of total scheduled flights. Almost 20%, meanwhile, were delayed – both of which were marked improvements over other major travel weekends this year.

As far as the labor market goes, the airline industry is one area where tight conditions can truly cause concern. As many airlines scramble for pilots, major brands like American Airlines (AA) are offering huge pay incentives. 

Others plan to attract pilots with subsidiary companies that skirt pilot requirements. Which sounds a little more than disconcerting, I know.

In any case, America’s airline industry is due for a major course correction. Let’s hope Independence Day was a good indication that the chaos of summer travel may soon be under control.

I wouldn’t exactly bet on it, but you never know… It could happen!

The World According to REITs 

Next up… cannabis real estate investment trusts (REITs)! They’ve been enjoying relaxed state laws and a growing contingent of eager customers.

Take NewLake Capital Partners (NLCP), which – like its peers – provides real estate capital to state-licensed cannabis operators. It’s quickly becoming a power player in the pot realm. Just yesterday, it announced $50 million in investments.

“We are excited to announce these transactions, where 98% of our capital commitment was funded at closing,” said CEO David Weinstein. “Through these… we have added a new publicly traded MSO Tenant partner, a new market to NewLake’s portfolio, and taken advantage of built-in growth in our portfolio.”

The two properties mentioned include:

• A 38,000 square-foot cultivation facility in Pennsylvania for $14.5 million – for which it’s also providing $750,000 extra for tenant improvements
• A $13.6 million 56,500 square-foot cultivation facility in Nevada, which represents new territory for NewLake.

Even so, this REIT still hasn’t found its footing on the ticker. Its stock has shed about 36% year-to-date despite its revenue rising 130% and net income spiking 243% year-over-year.

Everything considered I rate NewLake Capital Partners as a Buy – though a speculative one.

Author’s Note: If you do determine this stock is right for you, make sure to purchase it at a smart entry point. Even the best of companies can burn you badly by buying in at inflated prices.

More By This Author:

The Economy Continues to Keep Us on Our Toes
Commodities Actually Cooled Off
Happy 4th of July!