{"id":6099,"date":"2022-02-10T20:24:13","date_gmt":"2022-02-10T20:24:13","guid":{"rendered":"https:\/\/bitsypixel.com\/clients\/bpo\/?p=6099"},"modified":"2022-05-03T19:42:54","modified_gmt":"2022-05-03T19:42:54","slug":"4-main-causes-of-the-labor-shortage","status":"publish","type":"post","link":"https:\/\/bitsypixel.com\/clients\/bpo\/4-main-causes-of-the-labor-shortage\/","title":{"rendered":"4 Main Causes of The Labor Shortage"},"content":{"rendered":"<p><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#e2e2e2;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1216.8px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-1{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-2 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#e2e2e2;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1216.8px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-1\"><p><strong>Employers can\u2019t find workers<\/strong> amidst <strong>the Great Resignation<\/strong> while the existing workforce is slowly shrinking due to a current <strong>labor shortage<\/strong>. It\u2019s several months in the making that people are <a href=\"https:\/\/www.bls.gov\/news.release\/jolts.nr0.htm\" target=\"_blank\" rel=\"noopener\">voluntarily quitting<\/a> their jobs; even with <a href=\"https:\/\/tradingeconomics.com\/united-states\/job-offers\" target=\"_blank\" rel=\"noopener\">over 10 million<\/a> positions open, recruiters can do little to fill them. One may wonder, <strong>why is this labor crisis happening? <\/strong>And even with so many open posts, why can\u2019t companies hire?<\/p>\n<p>Some of the <a href=\"https:\/\/www.sbam.org\/whats-really-causing-the-labor-shortage\/\" target=\"_blank\" rel=\"noopener\">reasons<\/a> frequently mentioned by economists as to <strong>what caused the labor shortage<\/strong> include health and safety concerns, requiring at-home care, demands in benefits and flexibility, career switching, reimagining life, and holding out for higher wages. Below we have discussed four of the many reasons for the <strong>labor shortage 2021<\/strong><\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-0{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-0 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1024px) {.fusion-body .fusion-builder-column-0{width:100% !important;order : 0;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-0{width:100% !important;order : 0;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-2{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-3 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#e2e2e2;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1216.8px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-1 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-2\"><h2><strong>Reasons for the Labor Crisis<\/strong><\/h2>\n<p><strong><img class=\"alignnone wp-image-6103 size-full\" title=\"4 Main Causes of The Labor Shortage\" src=\"https:\/\/bitsypixel.com\/clients\/bpo\/wp-content\/uploads\/2022\/02\/4-main-causes-of-the-labor-shortage.jpg\" alt=\"4 Main Causes of The Labor Shortage\" width=\"880\" height=\"450\" srcset=\"https:\/\/bitsypixel.com\/clients\/bpo\/wp-content\/uploads\/2022\/02\/4-main-causes-of-the-labor-shortage-200x102.jpg 200w, https:\/\/bitsypixel.com\/clients\/bpo\/wp-content\/uploads\/2022\/02\/4-main-causes-of-the-labor-shortage-300x153.jpg 300w, https:\/\/bitsypixel.com\/clients\/bpo\/wp-content\/uploads\/2022\/02\/4-main-causes-of-the-labor-shortage-400x205.jpg 400w, https:\/\/bitsypixel.com\/clients\/bpo\/wp-content\/uploads\/2022\/02\/4-main-causes-of-the-labor-shortage-600x307.jpg 600w, https:\/\/bitsypixel.com\/clients\/bpo\/wp-content\/uploads\/2022\/02\/4-main-causes-of-the-labor-shortage-768x393.jpg 768w, https:\/\/bitsypixel.com\/clients\/bpo\/wp-content\/uploads\/2022\/02\/4-main-causes-of-the-labor-shortage-800x409.jpg 800w, https:\/\/bitsypixel.com\/clients\/bpo\/wp-content\/uploads\/2022\/02\/4-main-causes-of-the-labor-shortage.jpg 880w\" sizes=\"(max-width: 880px) 100vw, 880px\" \/><\/strong><\/p>\n<h3 class=\"blue-head\">Loss of the Retirement Generation<\/h3>\n<p>Pre-pandemic levels of the labor force <a href=\"https:\/\/www.bls.gov\/charts\/employment-situation\/civilian-labor-force-participation-rate.htm\" target=\"_blank\" rel=\"noopener\">participation rate<\/a> were much higher than today, with a major chunk of the workforce now retired. Whether forced into early retirement by being furloughed or laid off or doing so willingly; Covid-19 has greatly<a href=\"https:\/\/edition.cnn.com\/2021\/12\/25\/economy\/labor-shortage-early-retirement-charts\/index.html\" target=\"_blank\" rel=\"noopener\"> impacted<\/a> the participation and recovery of older workers. As the <a href=\"https:\/\/abc17news.com\/news\/2021\/12\/18\/retiring-boomers-not-lazy-millennials-are-driving-the-labor-shortage\/#:~:text=And%20data%20show%20that%20retiring,force%20behind%20the%20labor%20shortage.&amp;text=Last%20month%2C%20there%20were%203.6,of%20them%20were%20over%2055.\" target=\"_blank\" rel=\"noopener\">Boomer generation<\/a> is less likely to return to work due to health risks, there is a sudden gap in the labor force that has surged post-pandemic.<\/p>\n<blockquote>\n<p><strong><em>The number of retired workers increased from 45.1 million to 69.8 million, in 2021 from 2019<\/em><\/strong> \u2013 <a href=\"https:\/\/www.annuity.org\/retirement\/retirement-statistics\/#:~:text=The%20number%20of%20retired%20workers,Security%20beneficiaries%20were%20retired%20workers.\">Annuity.org<\/a><\/p>\n<\/blockquote>\n<h3 class=\"blue-head\">The Skill Shortage and Mismatch of Jobs<\/h3>\n<p>With the older generation not returning, the younger ones do not have the necessary experience employers are looking for in the changing job market today. Those organizations that are recruiting are facing<a href=\"https:\/\/www.shrm.org\/hr-today\/trends-and-forecasting\/research-and-surveys\/documents\/shrm%20skills%20gap%202019.pdf\" target=\"_blank\" rel=\"noopener\"> challenges<\/a> in acquiring the right fit, claiming a lack of skills and a <a href=\"https:\/\/go.manpowergroup.com\/hubfs\/Talent%20Shortage%202021\/MPG_2021_Outlook_Survey-Global.pdf\" target=\"_blank\" rel=\"noopener\">15-year high talent shortage<\/a> among mismatched applicants. If employers can\u2019t find what they are looking for, the open positions are likely to <a href=\"https:\/\/www.kornferry.com\/insights\/this-week-in-leadership\/talent-crunch-future-of-work\" target=\"_blank\" rel=\"noopener\">go unfilled<\/a>, creating a further gap.<\/p>\n<p>Requiring years of experience for a particular post, <a href=\"https:\/\/www.businessinsider.com\/3-mismatches-workers-employers-labor-shortage-flexibility-hours-remote-work-2021-11\" target=\"_blank\" rel=\"noopener\">employers want<\/a> in-person on-site workers that they don\u2019t have to train. Whereas the working generation (mostly millennials) <a href=\"https:\/\/www.businessinsider.com\/survey-shows-workers-want-more-remote-flexibility-higher-pay-2021-9\" target=\"_blank\" rel=\"noopener\">demand<\/a> remote hours and flexible environments, so they don\u2019t have to return full-time. The younger generation is willing to continue looking for <a href=\"https:\/\/online.hbs.edu\/blog\/post\/future-of-work-from-home\" target=\"_blank\" rel=\"noopener\">work remotely<\/a> until they find something fulfilling or a job that caters to their mental and monetary well-being.<\/p>\n<h3 class=\"blue-head\">Burnout is on the Rise<\/h3>\n<p>The push towards the 9-5 grind by employers is also causing massive <strong>burnout<\/strong> to the existing employees. Taking on extra duties to keep systems running while trying to find a balance between home and work; employees are <a href=\"https:\/\/www.gallup.com\/workplace\/351545\/great-resignation-really-great-discontent.aspx\" target=\"_blank\" rel=\"noopener\">discontented<\/a> and <a href=\"https:\/\/www.forbes.com\/sites\/forbeshumanresourcescouncil\/2021\/12\/20\/the-parents-arent-alright-how-to-retain-and-sustain-working-parents-amid-the-great-resignation\/?sh=102266754bab\" target=\"_blank\" rel=\"noopener\">overworked<\/a>. The current ones are already on the lookout to switch or <a href=\"https:\/\/www.qualtrics.com\/blog\/labor-shortage-study\/\">quit their existing positions<\/a>, just to let go of the stress, and search for better opportunities. If not addressed, this would lead to a greater labor shortage in the future.<\/p>\n<h3 class=\"blue-head\">Pandemic Choices<\/h3>\n<p>Employees wanting to change their work situations from before are asking for higher wages in addition to benefits. Particularly driven by <strong>panic buying<\/strong> during the pandemic, the <a href=\"https:\/\/www.businessinsider.com\/why-labor-shortage-will-last-for-years-great-resignation-jpm-2021-12\" target=\"_blank\" rel=\"noopener\">increased demand<\/a> for goods and services has led laborers to imagine a better lifestyle. <a href=\"https:\/\/advocacy.shrm.org\/wp-content\/uploads\/2021\/07\/SHRM-Research_The_Employment_Picture_Comes_Into_Focus.pdf\" target=\"_blank\" rel=\"noopener\">Stimulus aid<\/a> may have changed the worker mindset permanently in the pandemic months. It is now that people have realized they were never happy with the existing work conditions (going on <a href=\"https:\/\/www.inc.com\/jessica-stillman\/adam-grant-great-resignation-roots.html\" target=\"_blank\" rel=\"noopener\">decades<\/a>) and want to continue no further.<\/p>\n<p>Some other connected reasons include wanting better payouts, discrimination at the workplace, desiring to be your own boss, shuffling careers, and childcare duties among others. Regardless of how many reasons there may be, they all work in the amalgam to create this current <strong>labor crisis<\/strong> which is likely to continue if the word \u201cwork\u201d itself is not redefined.<\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-1{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-1 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1024px) {.fusion-body .fusion-builder-column-1{width:100% !important;order : 0;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-1{width:100% !important;order : 0;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-3{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-4 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#e2e2e2;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1216.8px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-2 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-3\"><h2><strong>How to Overcome the Labor Shortage?<\/strong><\/h2>\n<p>Even with perks and benefits, increased salaries, better healthcare, WFH options, etc. what will companies do when they <strong>can\u2019t find the right talent to hire<\/strong>? More so for the fundamental roles that require a full-time presence when <a href=\"https:\/\/www.businessinsider.com\/quit-job-flexible-remote-working-from-home-return-to-office-2021-6\" target=\"_blank\" rel=\"noopener\">people aren\u2019t willing to work<\/a>; immediate employment is required. Amidst a <strong>talent shortage<\/strong> on the rise, you will not find suitable candidates from the same pool of applicants. The solution is to <strong>co-source <\/strong>with a firm willing to take on your cultural values as their own.<\/p>\n<p><strong>Co-sourcing partners<\/strong> have offshore resources that offer low-cost, high-quality services, parallel to standards of in-house employees. Especially during a labor crisis, when talent is scarce, an outsourcer like Premier BPO can fill your empty roles in a matter of weeks. With us, you won\u2019t feel the <strong>effects of the<\/strong> <strong>labor crisis<\/strong>, <strong>turnover<\/strong> won\u2019t be a problem anymore, and we staff people for highly specialized roles and custom skillsets. To know more, visit us <a href=\"https:\/\/bitsypixel.com\/clients\/bpo\/first-time-outsourcers\/\">here<\/a>.<\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-2{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-2 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1024px) {.fusion-body .fusion-builder-column-2{width:100% !important;order : 0;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-2{width:100% !important;order : 0;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-4{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":6,"featured_media":6103,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1,283],"tags":[251,250,267,266,265,249,264,140],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.13 - 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