Experts Discuss Whether Labor Shortage Will Change
Once the shutdowns created by the pandemic were over, many thought that business would go back to usual. But after the pandemic, the nation saw what many described as the Great Resignation. And through 2022, the labor shortage did not improve as much as many expected.
In 2021, most industries saw an employee shortage that kept businesses from reopening. And for some businesses like those in the restaurant industry, problems seemed to continue into 2022.
And then even at the end of the year, many said that the labor shortage has not improved to where it was pre-pandemic. Problems with having enough employees, while worse in industries like hospitality, still affect most industries.
What Has Caused the Labor Shortage to Continue?
According to an article published by the Washington Post, the labor shortage can still be seen in such statistics as 11 million job openings with only 6 million unemployed workers. The article talks about how shortages have led to strikes in industries like transportation, health care and education due to the pressure being shorthanded puts on them.
“The share of working-age Americans who have a job or are looking for one is at 62.4 percent, a full percentage point lower than it was in February 2020, according to Labor Department data,” the article reported.
The article discusses how there are many factors that have contributed to this change in the country’s workforce. Some of these factors include people retiring early, a slowdown in immigration, and childcare/elder care challenges.
Experts Say a Labor Shortage Still Exists Locally
The problems with getting and keeping employees may not be as bad as it was a year ago, but businesses in the Colorado Springs area are still having issues related to the employee shortage. According to Traci Marques, Executive Director of the Pikes Peak Workforce Center, there are more jobs open locally than there are workers to fill them.
“We are still seeing an employee shortage,” Marques said. “In the Pikes Peak Region, there are over 25,000 open positions and there’s 0.5 of a person to fill every position. If you look at those who are participating in the labor market versus the number of jobs there is a gap still.”
Marques said that the labor shortage has still been seen across all industries and there has been a skills gap. “There is a skills gap between the people that are actively looking for work and the positions they could potentially fill,” Marques explained. “The people may not actually have the skills of the job openings that are currently available in the region. When we look at this we need to look at how do we re-skill those that are looking for work to fill the jobs that we have?”
Marques said that employers could also take some steps to fix the skills gap she is seeing. “At the same time, we have to look at employers to see how are you posting your jobs?” Marques stated. “Are your job postings skills-based hiring? Or are you looking for something specific that may not be available? And skills-based hiring is looking at the skills that are needed to do a job, not necessarily the experience they have had in the past. It is a great way for businesses and job seekers to change their lids a little bit on how they are searching for people.”
Marques said that the hospitality industry is still seeing a labor shortage. She said they took a survey and people in the industry wanted things like two days off in a row. And she said that more people are looking for quality jobs that include other things like a good work culture as much as good pay.
She also said that there is still a shortage in the early childhood education industry as the region has lost daycare centers and education providers during the pandemic. She said that there are initiatives at the statewide and local levels that are working on bringing workers back to the industry. One thing that has helped is internship programs where people can work in early childhood education while getting a degree in the field.
She said that the construction industry has slowed down a little bit for the winter season. They have seen some seasonal layoffs in the industry, which is typical, but it has still been difficult for most businesses in construction to attract qualified workers.
Will the Labor Shortage Get Better Anytime Soon?
Marques said that she has seen some improvements but she thinks that things will have to change on both sides in order for the labor market to completely recover. She said that job seekers need to put more thought into what industries they want to work in and do the research and see what kind of skills they will need for their desired position.
And employers will probably have to change how they look at employees as well. “They are not going to get 300 resumes for one job opening anymore,” Marques said. “They may have to make their job postings more skills-based hiring. And they need to make sure there is no unintentional discrimination in the job posting. It is going to take both sides.”
If the Country Heads into a Recession Will the Labor Shortage Improve?
Marques said that she did not know whether the employee shortage would improve if the country enters into a recession this year. She said that one major factor has been that the demographics are changing in Colorado as the birth rate is declining and the average age of residents is increasing.
According to an article published by Business Insider, even though many economists say that a recession is coming in 2023, most workers’ jobs will be safe. In October alone the country saw over 10 million job openings. And the U.S. saw a gain of 263,000 jobs in November. And according to the U.S. Department of Labor, the U.S. economy added 223,000 jobs moving the three-month average to 247,000.
As more jobs open up, a decline in the birth rate and immigration will affect the number of people in the workforce for the next decade or so. In 2021, the country’s population grew at the slowest rate in history. And the U.S. population is expected to see a 3.2 percent drop in the number of people aged 15 to 65 between 2026 and 2036.
According to a Census report, the year 2030 will be a landmark for demographic changes that may keep the labor market good for those seeking work, but bad for employers looking for help. “Beginning that year (2030), all baby boomers will be older than 65. This will expand the size of the older population so that one in every five Americans is projected to be retirement age,” the Census reported. “Later that decade, by 2034, we project that older adults will outnumber children for the first time in US history.”
Primary reason for employee shortages and military recruits, and tax base shortages can be found in the 30 million babies who would now be in the workforce because of 60+million abortions since Roe vs Wade in 1973. Not a popular message but has had o powerful impact on America’s demographics!