Shifting the mindset around labor shortfall in the workforce

(Editor’s note: This installment is the second of two parts).

Since the pandemic, the U.S. has lost approximately 8 million people from the workforce. That figure represents approximately 5% of the overall workforce, a sizeable and noticeable number to be sure. However, there are other factors impacting the pool of available workers. Following are several key ones:

An aging workforce.

Let’s face it, we’re all getting older. According to recent U.S. Census Bureau data, the nation’s median age is pushing 40 years old, and we’re aging faster than at any other time in our history. On average, 10,000 baby boomers turn 65 each day; 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. As these workers age and retire, the number of Generation Z and following Alpha workers are not sizeable enough to replace exiting baby boomers.

Lower birth rate.

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. We’re not giving birth to enough future workers to replace the retired/retiring workers.

Employment projections.

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. But we’re already 8 million workers short. Moreover, this shortage is anticipated to persist for the foreseeable future. And because of this the unemployment rate is stuck at or below what is considered to be full employment (approximately 4.2%).

See what I mean? It’s kind of scary. It’s definitely something business leaders should be staying up at night thinking about—or at least having some conversations with their best and brightest internal and external advisors discussing. However, I don’t see this happening. I get the sense that business owners mistakenly believe 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’t exist; everyone is working. This is just the new normal.

If this comes as a surprise to you, you’re not alone. But it’s not too late. What’s required is simply a mindset shift. 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.

The good news is most of these initiatives cost little to no money to implement and do well. All it takes is a mindset shift along with the dedication and commitment to do one and only one thing: value employees for the valuable assets they are.

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Claudia St. John, SPHR, SHRM-SCP, is the founder and CEO of The Workplace Advisors, a leading HR consulting and training firm, and the endorsed HR provider for the North American Association of Floor Covering Distributors. A certified professional behavioral analyst, St. John empowers organizations with evidence-backed insights so they can navigate the evolving landscape of talent acquisition, engagement and retention with confidence and foresight.

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