Skilled labor was once easy to find for a wide span of industries. Since the rise of the gig economy the past few decades, more young people are increasingly gravitating toward short-term jobs through online platforms. The skyrocketing cost of education to earn a degree leading to massive student debt has been a primary factor for this shift. Here is an overview of the growing concerns regarding a skilled labor shortage.
Roots of the Skills Gap Problem
At one point in time, family businesses use to thrive and provide employment for several generations, as long as family members learned the trade. Today, a different economy has emerged that involves children growing up with different interests than their parents.
The problem of unfilled job positions due to unqualified candidates has steadily grown in the backdrop of what is often called by the media the “economic recovery.” Unemployment decreased dramatically overall from 2009 to 2019, but that story masks the fact that there were countless unfilled jobs by the end of that period, according to a Deloitte study. The economic impact of 2.4 million unfilled jobs from 2018 to 2028 may be as much as $2.5 trillion.
Another reason for skilled labor shortages is that it is simply not easy to gain the training, credentials, and credibility of a licensed tradesperson. Learning a new trade isn’t simplistic, and it takes time and often expenses on classes, books, and equipment. Additionally, skilled labor shortages can be attributed to the retirement of baby boomers.
This problem has clearly affected the construction industry, which is experiencing project delays among 81 percent of members from the National Association of Home Builders. Furthermore, HVAC companies are missing as much as 30 customer calls per day, since work can’t be serviced right away.
Solutions for Skilled Labor Shortages
If your organization needs workers with special skills consider offering a regular career seminar that provides demonstrations and training to nurture a local workforce. For a profession such as plumbing, which requires deep knowledge, create a 12-month paid training program that leads to job placement.
The main challenge for industries looking to attract skilled talent is to offer career opportunities that are convenient for individuals in specific communities with good pay. Franchise management teams are no longer able to hire and recruit on behalf of franchisees due to legal pressures, but they can work with vendors that provide tools for its members. Creating a software resource such as CareerPlug can help build a workforce, which it has done for Neighborly brand franchises.