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America is Open for Business, and Temporary Labor Will Help the Economy Bounce Back
June 28, 2021
Temporary Labor Might Help Navigate and Ease Complications From Nation-Wide Labor Shortages
COVID-19 hit the American economy hard, but just about a year and a half after the initial lockdowns of March 2020, it has reopened for business. Lower case numbers and increased vaccination rates have prompted many states to ease public health measures, marking a return to industries, including live events, dining, and in some cases, leisure and corporate travel. Temporary labor will play an essential role as industries of all kinds seek solutions to labor shortages across the country.
The truth, however, is that the economic recovery from local lockdowns and supply chain issues is expected to be long and complicated, with new challenges arising across every quarter. Business owners focusing on economic recovery should begin planning now for the potential issues related to labor shortages and the formations of unions within their workforces.
Temporary Labor Could Address Potential Volatility and Surges in Demand
There are many reasons for optimism, including the rising rates of vaccinations across the country. Increased vaccinations ultimately mean that many work and office settings can reopen safely, potentially with fewer safety measures and a decreased likelihood that workforces will get sick. With over 300 million vaccinations distributed to the public across the country as of late June, the hope is that many industries can return to “normalcy” without spending thousands of dollars on personal protective equipment (PPE) and other social distancing measures.
As case numbers continue to decline in the United States, economic recovery has been so fast that many industries are struggling to supply the sudden surge in demand. In the spring months of 2021, the US economy added close to a million new jobs, with more on the way. However, what is more puzzling is that unemployment rates in the United States remain high, sitting at just over 11% as of June 2021.
Temporary Labor Can Alleviate Worker Shortages in the United States
Dining, fast food, warehouse, general labor, construction, cleaning, moving, and other low-skilled industries have been caught off guard by the sudden inability to fill roles that they once had no issue hiring for. The exact explanation of why these industries continue to be short on labor is complex. There remains some hesitancy across portions of society to officially come back to the workplace. Many sectors will need to rely on temporary workforces to address sudden shifts in demand and the increasing issue of labor shortages.
The manufacturing industry also continues to experience complicated issues related to its supply chain, as labor shortages have thrown a wrench into many businesses’ recovery plans. Walk-offs and absenteeism throughout a supply chain can lead to a lack of raw materials or key labor, leaving some industries unable to meet increased demands. This could result in further delays across the chain and unfilled orders. With continued price increases of raw materials along with labor shortages, issues related to the logistics and transportation of goods could be compounded.
Temporary Labor is Just Part of Addressing Demand During America’s Reopening
An increase in demand is a great sign of economic recovery, but persistent labor shortages might mean new challenges that many industries will have to overcome. There is a potential that key components of supply chains could struggle, offering a long list of complications for several vital partnerships. Even in instances where a business has successfully brought its workforces back to the job site, the emergence of workers’ unions could suddenly mean a need for temporary labor.
Regular business continuity planning that speaks to the uncertainty of the American labor market can help to ensure that your business remains resilient to just about anything. Many industries should begin preparing for a silent storm of complications related to the upcoming PRO Act, as the United States is expected to experience a labor reform that hasn’t been seen for close to 100 years. Navigating the complications related to supply chains and labor shortages might be compounded by the rise of unions within your workforces, along with complicated labor negotiations that might result in sudden strikes and walk-offs.
Temporary Labor Solutions Offered by AFIMAC
AFIMAC offers business owners supplemental labor that can address ongoing labor stoppages due to a strike, labor dispute, or worker shortage. Should your business be considering replacing a workforce due to the PRO Act or any other complication, AFIMAC offers replacement and temporary workers that can address your needs. We maintain a large database of workers to address walk-offs, strikes, or refusals to work in many industries across North America.
When companies need temporary labor, AFIMAC continues to be recognized as the industry leader. Contact us directly to learn more about the wide range of strike services, temporary labor solutions, and executive security/protection services to help you navigate any complicated labor disruption.