As an entrepreneur, entering an industry requires plenty of research. Each sector has its own set of problems to solve and a work culture to navigate. But one prominent issue in almost every business is how they are starving for the right talent. It’s key to look forward to the next year and see the labor landscape of your desired industry.
The Reality of Labor Shortages
Labor shortages can affect a company’s efficiency. With fewer people working, fewer results are produced. There are fewer products and services provided. This can lead to a plunge in profitability and overall business growth. It can also strain the current workforce under a company’s belt, as they’re overworked to meet metrics.
According to the Bureau of Labor and Statistics, the labor force participation rate has been flat at 62.8% since August. However, in the same report, the number of people actively looking for a job is 5.3 million. This starts to stir questions as to why there’s a labor shortage in the first place when so many people are applying.
To answer the question, it’s important to look into the standard for jobs. During the pandemic, many unemployment benefits have come to light. As employees from different industries start to see the predicament of some people, they start to have more desires for their jobs. They want more wages, better working conditions and increased working flexibility.
There’s also the matter of a skills mismatch. People with a two-year associate degree or a community college certificate have a more comprehensive skillset than those who just completed high school. But despite that fact and the possibility of having 31% and 26% more in earnings respectively, many middle-skill jobs go unfilled.
Industries Struggling With Talents
There may be other reasons why the industry is projected to struggle with getting talent in 2024. This outline will give an overview of different lines of business and their possible issues.
1. Healthcare
The pandemic took quite a toll on the health sector, with professionals in the field feeling burned out and undervalued. The American Association of Medical Colleges foresees a shortage of 122,000 physicians. Most practitioners look to enter specialized fields. There’s also the matter of older health care workers retiring relatively soon.
2. Transportation
Transportation workers are also expected to have a high retirement rate. The American Public Transportation Association reveals that 43% of transit workers are over 55 years old. This calls for new talents to step in. Unfortunately, work schedules and compensation may hinder applicants.
3. Aerospace
An aging workforce is also a considerable challenge for the aerospace industry. Plus, there’s also the matter of finding and attracting new talents with the right skills. Aerospace talents typically need a variety of credentials, such as a bachelor’s degree and an internship. There’s also the matter of security clearance and U.S. citizenship if you are an immigrant.
4. Agriculture
Despite how necessary the agricultural sector is to society, there is a negative perception of farming. It requires a hefty investment if you don’t have an existing farmland and machinery investments are pretty high. There’s also the matter of how physically demanding this business is. Thus, attracting newer farm operators is a challenge.
5. Food Service
About 21% of restaurant owners in the U.S. reveal that the main reason behind a labor shortage in their industry is higher wage expectations. Around 17% of those surveyed stated that there’s also a lack of skilled workers. Meanwhile, another 17% note that the competition from other industries pulled those workers.
6. Hotel and Tourism
Fewer people were checking into hotels and traveling during the pandemic. Now, there are around 235 million tourists embarking on international travel. However, many hotel workers are missing in action. It’s recommended to adjust wages and offer career development to make the industry attractive to jobseekers once again.
7. Government
Governments are integral to solving the labor shortage that the country is facing, but they are struggling to retain people as well. State and local government employment had lessened by more than 600,000 workers between the beginning of the pandemic and June 2022. While they may have recovered in 2023, it is uncertain whether all these roles will be filled by 2024.
8. Retail
The retail industry is the first option many entrepreneurs look to when thinking of a business. However, About 63% of retailers are operating with an employee deficit during the beginning of 2023. It is possible to look into e-commerce and automation as a possible solution.
8. Education
Educators are in high demand, but there is a global labor shortage. This is especially the case for higher education and specialized fields. There’s also a sentiment for public K-12 school teachers. They are paid 19.2% less than other workers with a similar occupation in the field.
Seek the Right Talent
Many industries are projected to require more talent, but it’s also important to consider quality in this mix. Having the most qualified candidates in place can make your ventures in a certain working sector more successful in the long run.
