The U.S. is heading toward a large labor shortage, and there are a few big reasons for it. One is that Baby Boomers are retiring in big numbers, and fewer people are having children. Younger generations are more interested in office jobs that require college degrees, leaving trades like plumbing and HVAC struggling to find workers.
There’s also a misalignment in the workforce. While women are earning more degrees and working in fields like healthcare, they’re underrepresented in industries where there’s a big need for workers, such as auto maintenance. Meanwhile, men of prime working age are leaving the workforce due to issues like substance abuse and incarceration.
Immigration is the only thing keeping the labor force growing since 2019, and the participation rates for people over 65 haven’t bounced back to pre-pandemic levels. The result? Key industries like food services and public safety are short-staffed.
But there’s hope. Employers can adjust to this shift by thinking differently about hiring. Instead of waiting for the perfect candidates with all the right skills, businesses should consider training new hires and reskilling current workers. Offering flexible work options like childcare could also help bring more people into the workforce, especially those who are currently staying home to care for family.
This summary is based on a labor market report from Lightcast. You can read more on this topic from the original article here.
By adapting hiring strategies, companies can better navigate the changing labor landscape and continue to thrive despite the challenges ahead.