{"id":9151,"date":"2023-10-10T20:07:46","date_gmt":"2023-10-10T20:07:46","guid":{"rendered":"https:\/\/affinityhrgroup.com\/?p=9151"},"modified":"2023-11-06T21:52:05","modified_gmt":"2023-11-06T21:52:05","slug":"where-did-all-the-workers-go","status":"publish","type":"post","link":"https:\/\/theworkplaceadvisors.com\/where-did-all-the-workers-go\/","title":{"rendered":"Where Did All the Workers Go?"},"content":{"rendered":"
Recently I was sharing a cab with a client on my way to speak at a conference. He turned to me and said that he was interested to hear what I had to say about the state of the U.S. labor market.\u00a0 When I asked him what specifically he was hoping to hear in my talk, he said, \u201cWell, I\u2019m hoping you\u2019re going to tell us where the workers went and when they\u2019re going to come back.\u00a0 When are they going to get off the sofa and back to work. We\u2019re dying out here and people just don\u2019t seem to want to work anymore.\u201d\u00a0<\/span><\/p>\n If only I had a dollar for every time someone asked me this exact same question:\u00a0 where all the workers went and when they were going to come back.\u00a0 The truth, everyone <\/span>IS <\/span><\/i>back to work. They\u2019ve been back to work for a long time.\u00a0 The problem is, there just aren\u2019t as many of them as there used to be.\u00a0 And when I explain this to people like my client, they seem surprised. And that, in turn, surprises me because these labor trends have been on the horizon for a long time. I think business owners have been ignoring the reality that there aren\u2019t enough workers for all the jobs that are out there. In fact, as of August 1, 2023, there were almost 4 million more jobs than there were workers available to fill them. And what\u2019s worse is that we don\u2019t anticipate this changing anytime soon.\u00a0\u00a0<\/span><\/p>\n In fact, this has become my personal and professional mission it seems \u2013 to travel the country speaking to business leaders, making them aware of what they should already know: there simply aren\u2019t enough workers to satisfy all of the promises companies have made to their customers, let alone to support their growth projections. And here\u2019s why:<\/span><\/p>\n Eight Million Missing Workers <\/b>\u2013 Since the COVID 19 pandemic, we have lost approximately eight million workers from the workplace.\u00a0 There are a number of places those workers went:<\/span><\/p>\n These eight million workers represent approximately 5% of the overall workforce, a sizeable and noticeable number to be sure.\u00a0<\/span><\/p>\n An Aging Workforce <\/b>\u2013 Let\u2019s face it, just like you and me, the United States is getting older.\u00a0 According to recent U.S. Census Bureau data, the nation\u2019s median age is pushing 40 years old, and we\u2019re aging faster than at any other time in our history.\u00a0 On average, 10,000 baby boomers turn 65 each and every day and by 2031, the number of people age 65 and over will number an estimated 75 million, almost double what it was just 15 years ago.\u00a0 As these workers age and retire, the number of Generation Z and following Alpha workers are not sizeable enough to replace exiting baby boomers.<\/span><\/p>\n Lower Birth Rate <\/b>\u2013 The current U.S. birth rate is among the lowest it has ever been historically and projected to decrease over the rest of the century.\u00a0 We\u2019re simply not giving birth to enough future workers to replace the workers that currently are and will retire. Unlike their older counterparts, Millennials are putting off marriage and childbirth until later in life and are having fewer children than at any time in our history.<\/span><\/p>\n Decreased Immigration & Refugee Resettlement<\/b> \u2013 So if we\u2019re not giving birth to enough future workers, the strategy used historically and by other industrialized nations facing a similar aging workforce and low birthrate is to increase immigration. However, the U.S. has done the opposite.\u00a0 Between the years of 2013 and 2018, the annual net immigration stood at just under 1 million workers per year.\u00a0 Since COVID, immigration has largely dried up, with only 241,000 workers joining the workforce in 2021.\u00a0\u00a0\u00a0<\/span><\/p>\n Employment Projections<\/b> \u2013 According to the U.S. Bureau of Labor Statistics, from 2021 to 2031, the U.S. economy is projected to add 8.3 million jobs.\u00a0 But we\u2019re already 8 million workers short.\u00a0 And this shortage is anticipated to persist for the foreseeable future. And because of this, the unemployment rate is stuck below 4.2%, what economists say is full employment.\u00a0\u00a0\u00a0<\/span><\/p>\n See what I mean? It\u2019s kind of scary. It\u2019s definitely something business leaders should be staying up at night thinking about.\u00a0 Or at least having some conversations with their best and brightest internal and external advisors discussing.\u00a0 Yet, I don\u2019t see this happening. I get the sense that business owners are mistakenly believing that there is a pool of workers waiting on the sidelines for something magical to happen to convince them to rejoin the workforce. But they don\u2019t exist.\u00a0 Everyone is working.\u00a0 This is just the new normal.\u00a0\u00a0<\/span><\/p>\n \u00a0If this comes as a surprise to you, you\u2019re not alone.\u00a0 And it\u2019s not too late.\u00a0 What\u2019s required is simply a mindset shift.\u00a0 And most business leaders that we work with have all of the tools to get ahead of the game: they are investing in retention and employee engagement initiatives, they are looking for technology and outsourced\/offshore labor alternatives, they are upskilling their existing workers and they are investing in soft-skill training for their managers and supervisors who are the front-line defense for employee turnover and attrition.<\/span><\/p>\n The good news is that most of these initiatives cost little to no money to implement and to do well.\u00a0 And all of our clients are well-prepared for the task at hand, and of course we\u2019re here to help them along the way.\u00a0 All it takes is a mindset shift.\u00a0 All it takes is dedication and commitment to do one and only one thing: to value employees for the valuable asset that they are.<\/span><\/p>\n By Claudia St. John, SPHR, SHRM-SCP, President<\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Recently I was sharing a cab with a client on my way to speak at a conference. He turned to me and said that he was interested to hear what I had to say about the state of the U.S. labor market.\u00a0 When I asked him what specifically he was hoping to hear in my […]<\/p>\n","protected":false},"author":2,"featured_media":9929,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[9],"tags":[35,39],"class_list":["post-9151","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-claudia-st-john","tag-employee-engagement"],"aioseo_notices":[],"yoast_head":"\n\n