Industry News: Staffing Shortage Permanent?

So, maybe the pandemic isn’t all to blame for the staffing shortage. According to William Taylor of Workforce.com, we were already experiencing this shortage prior to the shutdown.

According to a 2019 study by the Brookings Institute, the labor force will decrease 58% by 2050. The pandemic just accelerated the decrease by four years. What is the cause if it wasn’t the pandemic? Williams notes that it is America’s changing demographics. “Its aging workforce has caused a collapse in the US labor force participation rate, dropping from 67% at the turn of the millennium to 63.3% February 2020.”

Williams believes that every business will have to decide how they will address this shortage because it’s here to stay:

• Pay higher salaries to attract staff from a shrinking talent pool
• Reduce the operations and revenue of your business
• Schedule smarter and become more efficient with your staffing levels

If the third option above is not being addressed, then the first two are accepted by proxy.

To read further regarding ways to fine-tune managing your workforce, click here