July, 24 Newsletter

April 3. US Manufacturing Faces Significant Talent Shortage by 2033: Deloitte and The Manufacturing Institute Report. The Manufacturing Institute, in collaboration with Deloitte, released a report highlighting the need for up to 3.8 million new jobs in the U.S. manufacturing industry between 2024 and 2033. This report emphasizes the importance of addressing workforce challenges to fill these positions, as failing to do so could result in 1.9 million jobs remaining unfilled. The study underscores the significance of attracting and retaining talent, with 65% of manufacturers identifying this as their primary business challenge. To bridge the skills gap and meet the industry’s evolving needs, the report suggests investing in upskilling the current workforce through training, technology, and policies that align with employee expectations. Additionally, forming partnerships with various entities like technical colleges, universities, and industry associations is crucial to developing new talent and ensuring the industry’s competitiveness in the market.

April 8. EU Jobs Crisis. The European Union is facing a significant talent shortage, particularly among small and medium-sized enterprises (SMEs). According to a Eurobarometer survey, 54% of SMEs in the EU identified difficulties in finding employees with the right skills as one of the top three most serious problems for their company. This figure ranged from 28% in Turkey to 68% in Belgium, indicating the widespread nature of the issue. This shortage is further emphasized by the fact that three in four employers in 21 European countries could not find the required skills, showing a substantial increase from previous years. The main reasons given by employers were that applicants needed to have the right qualifications, skills, or experience, closely followed by a lack of applicants. This shortage is attributed to a combination of factors, including an aging population, low birth rates, and insufficient orientation of education and training toward labor market needs. Additionally, it mentions that the Eurobarometer survey provides insights into staff shortages, with a focus on the main reasons behind the skills gaps.

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May 13. Understanding America’s Labor Shortage. The U.S. Chamber of Commerce’s article highlights the ongoing labor shortage in the U.S., exacerbated by the COVID-19 pandemic, which led to a significant disruption in the labor force, with over 50 million workers quitting their jobs in 2022 and 2021.  Industries such as leisure and hospitality, education, and health services are most impacted, with high quit rates and difficulty retaining workers. Despite high hiring rates, a significant number of job positions remain unfilled. The construction industry faces a labor surplus, while the manufacturing industry has made strides in recovery but still has many unfilled positions. Efforts to address these shortages include expanding childcare, offering innovative benefits, and providing upskilling opportunities.

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May 31. The growing skills gap could become as permanent as the labor shortage, a LinkedIn exec says. A.I. might be the solution.  In a recent interview, Dan Shapero, LinkedIn’s chief operating officer, warned that the growing skills gap could become as permanent as the labor shortage. The skills gap has resulted in a significant gap between the skills employers seek and those employees possess. Nearly half (44%) of individual workers require upskilling to perform their jobs effectively, according to the World Economic Forum’s 2023 Future of Jobs Report. The labor shortage, which has persisted for three years, is also expected to continue. The pandemic forced millions of workers to reassess their priorities, leading to a record-breaking labor shortage. While the Great Resignation has subsided, the labor shortage remains a fact of the economy for the next decade. A.I. could potentially address these issues, making employees more productive and filling roles that are otherwise difficult to fill.

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July 1. Listen to your blue-collar staff in the supply chain.  Key takeaways:

• Blue-collar workers are the backbone of supply chains, performing critical manual and technical roles.
• Ignoring the needs and concerns of blue-collar workers puts productivity and talent retention at risk.
• Companies must invest in their blue-collar workforce and provide a workplace that is competitive to attract and retain talent.
• Employees want a workplace that is flexible and provides purpose, in addition to fair compensation.
• Blue-collar workers often feel ignored by leadership who make decisions without consulting them.
• There is a “white-collar privilege” where office-based issues take precedence over the challenges faced by blue-collar workers.
• Declining birth rates will lead to a widening gap between labor supply and demand globally.
• Improving the workplace increases the likelihood of good employees returning in the future.

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