Is There Really a Skilled Labor Shortage? An Economic Crisis Detailed

The ongoing COVID-19 pandemic means that there are 8 million fewer people in the workforce. In some fields, there is a skilled labor shortage.

So what can you do if your company can’t find any skilled talent? This article explains why the shortage is happening and what you can do about it. 

Over-Generous Benefits?

One theory to explain the current skilled labor shortage is that the benefits offered by the federal government during COVID have been too generous. Critics of the COVID relief fund suggest that people are simply taking the money and refusing to work. 

While there might be a few people who’ve quit their job thanks to the stimulus checks, studies suggest the impact has been minimal at best. While the checks have been generous, they’re simply not enough to substitute for the income of a real job. 

Fear

One of the biggest reasons for the lack of skilled talent is fear. We’re in the middle of a pandemic, and people don’t want to work in jobs where they might be infected. Many workers are walking away from jobs that involve interacting with the public. 

For example, jobs in healthcare, recreation, and hospitality are suffering from an acute shortage of workers. Many people who work in these industries have decided to pursue something else. 

After all, why would you risk being infected with the coronavirus if you can work a much safer job for the same pay? It’s still relatively easy to find skilled workers in fields where the virus is less of a factor. For example, the construction industry has no shortage of people willing to work. 

Massive Changes to the Economy

COVID-19 has caused unprecedented changes to the global economy. The virus has caused the labor market to change dramatically in a short space of time. Many fields have grown so rapidly that the labor pool hasn’t had the chance to catch up yet. 

For example, consider how many jobs the vaccine drive has created. We need skilled workers to administer the vaccines, but many areas of the country may face a shortage due to how much the demand has increased in such a short space of time. 

Adapt to Survive

One thing is clear, businesses will need to adapt to survive. In a free-market economy like the United States, the only way to deal with a skilled labor shortage is to give more incentives for people to work. 

If you need to find more workers, you might need to raise wages. You might also consider trying to find qualified employees through an employment agency. 

Adapting to the Skilled Labor Shortage Could Benefit Your Business

As with any crisis, those who can adapt to the skilled labor shortage will come out on top. In a free market, you need to adapt to survive. If you can’t find workers, you may need to offer a higher paycheck. 

You might also consider reworking your business model to make employees feel safer. 

If you want to read about other business-related topics, check out the rest of our blog posts.