How To Recover From America's Labor Shortage Crisis?

4.4 million people, or 3% of workers, quit their job in September 2022. 


The pandemic created a major disruption in America's labor force which has been named by many others as The Great Resignation. 


In 2021, more than 47 million workers said goodbye to their jobs who also were expecting an improved work-life balance, flexibility, increased wages, and a robust company culture. The number increased much more in 2022.


But, why? 


The explanation states that during the pandemic reshuffling jobs demanded physical attendance and traditionally had lower wages along with a more challenging time retaining workers as the practice failed to meet up to the labor’s expectations. 


When witnessing a closer look at the labor shortage across various industry sectors, the transportation, healthcare, and social assistance, the accommodation and food sectors w000itnessed higher numbers of job openings. 


Even with that, these industry sectors balanced at relatively low quit rates. And the food industry parallelly fails to retain workers and has experienced consistently higher than average quit rates. 

42.1 million people quit in 2019


And hence, the labor shortage crisis in America is a complex issue that requires a multifaceted approach to recovery. The following are some strategies that employers and policymakers can implement to address the crisis:


Increase wages and benefits: 

One of the main reasons for the labor shortage is that many jobs are not paying enough to attract and retain workers. Employers can increase wages and benefits to attract and retain employees. This can include things like offering higher pay, more flexible schedules, and better benefits such as health insurance and retirement plans.


Re-thinking work and work schedule: 

The US economy had 7.4 million job openings in June, but only 6 million people were looking for work, said the US Department of Labor.


Employers should also consider re-thinking work and work schedules. They can explore options such as remote working, flexible working hours, and job sharing. This can help employees to better balance their work and personal lives, and make it more attractive to join and stay with a company.


Invest in training and education: 

The survey found that 589 of the 1,698 nurses surveyed were required to take training programs.


Another way to attract and retain workers is to invest in training and education programs. This can include offering on-the-job training, apprenticeships, and educational assistance to help employees acquire the skills they need to succeed in their roles.

Encourage immigration: 

The labor shortage crisis has been exacerbated by the current administration's hardline stance on immigration. Encouraging immigration can help alleviate the labor shortage by bringing in skilled workers from other countries. 

This can include policies such as expanding the H-1B visa program, which allows companies to bring in highly skilled workers from other countries, and creating a pathway to citizenship for undocumented immigrants currently living in the United States.

Automation and technology: 

Automation and technology can help companies become more efficient and productive, which can help them cope with the labor shortage. For example, businesses can invest in automation and technology such as robots and artificial intelligence softwares like NextCrew to help them perform tasks that would otherwise require human labor.

Wrap -Up

In conclusion, the labor shortage crisis in America is a complex issue that requires a multifaceted approach to recovery along with the flexibility of using updated tech-softwares. 

Employers, policymakers, and government should work together to implement strategies such as increasing wages and benefits, investing in training and education, encouraging immigration, automation and technology, re-thinking work and work schedule, government incentives, re-shoring and re-thinking the role of government in the labor market. 

By taking these steps, we can help to alleviate the labor shortage and ensure that American businesses have the skilled workforce they need to succeed.



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