Entrepreneurship has become a thriving industry across the US, creating record numbers of businesses. The number of jobs open in the country has outstripped the number of unemployed Americans. As a result, the number of people quitting their jobs has increased. According to the Census Bureau, the number of new businesses has reached 1.4 million. Most new businesses are in the manufacturing, retail, and health care industries.
However, while there is no shortage of jobs in the US, there is a labor shortage. The unemployment rate in the country is six percent, and there are 9.7 million people who are actively looking for a job. The labor shortage is a common topic of news stories, and articles highlighting it often show how businesses are struggling to find workers. This problem affects small towns, big cities, and tourist areas.
There is no single cause for the labor shortage in the US, but there are many factors that contribute to the problem. Most people assumed the situation would be temporary, but in April the number of people participating in the labor force dropped to 62.2%. As a result, more workers are needed to increase output.
Another contributing factor to the labor shortage in the US is the increased number of people changing careers. People are reassessing their interests and finding out if they can continue to work from home. Some stay in the same field, but others switch industries and companies. For example, some people have moved from retail merchandising to technology recruiting, and others have moved from retail to leisure.
While immigration policies are beyond most people’s control, businesses can take steps to reduce the labor shortage by improving the working conditions for their employees. They can offer flexible work arrangements and better wages. They can also update outdated processes and take an employee-first approach. Another solution is to utilize a workforce management system that blends automation and human touch.
There are many reasons why the US may experience a labor shortage. Many workers are searching for higher wages. According to a recent MIT and CNBC study, even $15 per hour would not allow many families to live comfortably. However, businesses paying higher wages have not suffered from labor shortages.
The number of unemployed workers is now equal to the number of open jobs. This means that finding skilled employees has become more difficult. Many people are choosing to work remotely and in shared workspaces, while others want to pursue their passions and develop soft skills. And while the unemployed numbers may not be as high, they are still greater than the number of workers who were unemployed fifteen years ago.
A major factor contributing to this labor shortage is the decline in immigration. Although it may have slowed down in recent years due to various policies, immigration is still contributing to the overall labor shortage. The Census Bureau has reduced its projections for new immigrants each year, and the number of potential immigrants is falling. As a result, there are not enough work-eligible foreign workers to make up the labor shortage.