The Labor Shortage Problem
All industries are experiencing labor shortages across the board. 77% of employers are not able to fill job vacancies. Paradoxically, there are also many job seekers that are struggling to find employment. Part of this dichotomy has to do with a mismatch between industries where there are labor shortages and the skills that job seekers currently have.
In Understanding America's Labor Shortage, some of the labor shortage culprits listed include: COVID-19, early retirements, less immigration, candidates choosing part-time employment over full-time positions, as well as the transition that some people have made to homemaking (some of which is connected to lack of access to childcare).
The COVID-19 pandemic caused many elders to retire early, or opt out of returning to work full-time or positions that do not offer remote work. Others have chosen to start their own businesses to have more control over their income earning potential and their lives.
According to the U.S. Chamber of Commerce, Monster.com, and Exploding Topics, some of the worker shortages are highest in the following industries.
IT computer specialists, IT analysts, software developers, programmers and database administrators. Currently, these industries lack candidates with the required skill sets. These "high-growth fields" are based on skills making them "well suited to on-the job training that builds on existing capabilities - in short, a new generation of apprenticeships for the knowledge economy."
Construction & manufacturing, including electricians, carpenters, machinists, etc. Shortages in this area are due to a retiring workforce. In addition, Millennial and Gen Z are showing less interest in replenishing these types of roles, as shared by Aidan Madigan-Curtis, a partner at venture capital firm Eclipse, told FOX Business.
Healthcare fields: nurses, doctors and specialists. Experts attribute the growing demand in these fields to an aging population that needs more health services than currently exists as well as healthcare workers leaving the industry due to burnout.
Community and social service workers, such as counselors, therapists and social workers. There is a high demand for social service workers in rural areas. Unsustainable salaries are another large reason for the shortage in this field.
Engineering and architecture. Lack of investment in training and education is one reason for the shortages in these fields. Even as the demand for buildings increases, fewer students are enrolling in architecture programs, according to Associate Dean Frank J. Mruk III at the New York Institute of Technology’s School of Architecture and Design.
The U.S. chamber of commerce lists the following states as having the most severe labor shortages.
Maine
Vermont
New Hampshire
Connecticut
Maryland
Virginia
South Carolina
Alabama
Mississippi
Arkansas
North Dakota
South Dakota
Nebraska
Wyoming
Montana
Utah