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April 24, 2023

How the Labor Shortage is Affecting Different Industries and What They Can Do About It

When the pandemic hit, jobs that require in-person attendance and traditionally have lower wages had a harder time retaining workers. An example of this is that the food service industry had the highest quit rate since July 2021, which was consistently above 5%. When taking a look at the labor shortage across different industries, the health care, social assistance, and food sectors all had the highest number of job openings.

Shortage Effects

When your employees are your greatest asset, they end up playing an essential role in the success of your business. When a labor shortage occurs, it limits the resources you have and impacts current workers productivity levels. Every employee counts in some way when keeping supply chains running smoothly. An example of this is delivery times. Companies always need products moved as quick as possible into production or storage. However, with fewer manufacturing workers available to produce goods, companies have had to buy more equipment at additional cost. Which, in turn, puts them behind schedule by multiple days or weeks.

Another example of shortages is that when you have a supply chain, you know that it is an incredibly complex structure that relies on multiple parties to work together efficiently. You can end up having catastrophic consequences if you delay getting products from manufacturers.

Hiring Problems

Hiring difficulties are being felt by both businesses and consumers in every industry. People seem to not want to work hard. They are seemingly looking for remote jobs where they can work from the comfort of their own homes without getting injured or putting in a ton of hard labor day in and day out.  Trying to find enough personnel a problem at all levels, but sourcing for warehousing and transportation departments is also seemingly tough right now. This challenge will only seem to worsen as retailers expand into new markets while still being able to satisfy online customer needs. Businesses in all different supply chains are going to need to take steps to retain their current workforce and help prevent these issues from becoming even more severe in the near future.

Solution?

There are many factors that contribute to the labor shortage, but it is important and vital that management figure out a solution. A huge solution is hiring veterans and immigrants. Veterans are a great hire because they are used to hard labor in the military and don’t mind taking orders. This makes them perfect candidates. Hiring immigrants is similar; most immigrants come to America looking for an opportunity for a better life. They are looking to prove themselves and do whatever it takes to make sure that both they and their families can live great lives here. For these reasons alone, they make hiring for these jobs simple and easy. Both will work hard and make sure the jobs get done, and you can find both veterans and immigrants all over. They are just looking for an opportunity.

At Boots on the Ground, we are a trusted staffing agency that helps connect veterans and immigrants in Minnesota with skilled blue-collar opportunities. Our mission is to help empower them through meaningful employment and to build a stronger workforce for our state. Check out our website or get in contact with us today to learn how we can help make a positive impact on the community and promote diversity in the workplace.