If you’re involved in recruiting, you know that the labor market has been tight for some time—dating back to before the pandemic. And while it’s rebounded slightly, U.S. employers remain short a whopping 4,000,000 workers. But the scariest part: it’s not likely to improve any time soon.
Forget the Great Resignation, Retirement and/or Reshuffle. Now, we’re confronting what some have labeled a “Forever Labor Shortage.” Let’s consider how we got here—and some long-term strategies for thriving in these challenging times.
The talent shortfall didn’t happen overnight. In part, the labor market correlates to population—and ours is shrinking.
According to Pew Research, Gen Z (1997-2012) consists of just 68 million members, compared to nearly 72 million Baby Boomers (1946-1964). And while some Gen Zers won’t enter the workforce for another decade, Boomers are retiring at accelerating rates.
As for those 30 million Americans who lost their jobs during the pandemic, a number haven’t returned to the workforce for various reasons.
Add it up, and here’s what we get: according to the Bureau of Labor Statistics (BLS), the labor force participation rate will drop from 62.2% (in 2022) to 60.4% by 2032—down from 63.3% pre-COVID.
That’s why we’re facing a forever labor shortage. And why savvy employers are optimizing their recruiting and retention efforts with strategies like these.
Chances are, when you recruit, it’s in order to fill a specific open position. You seek candidates with specific skills sets, and you seek them now.
But wouldn’t it be easier if your management and HR teams were always on the lookout for impressive professionals who are on your wavelength and share your company’s values?
What if, as a team, you made it a practice to connect—and stay in touch—with promising professionals in your field? That way, when an opening arises, you can hit the ground running by making a few strategic phone calls.
Best of all, it’s effortless—all it takes is a change of mindset and habits. What have you got to lose?