Trending in Business Continuity
Corporations Experiencing Low-Skilled Labor Shortages Might Need to Revise Their Offerings
July 26, 2021
Low-Skilled Labor Shortages: The Pandemic’s Long-Term Impact on Economic Recovery
Many corporations across North America continue to experience challenges during the reopening of the economy. Lockdowns, social distancing efforts, and health/sanitation requirements forced many companies to adjust their models to ensure that their business remains viable. The emergence of the PRO Act in the United States offers another hurdle for many business owners and corporations now experiencing low-skilled labor shortages. This summer, temporary workforces might be needed to address large corporations experiencing challenges with encouraging their workers to return to the job site.
General labor plays an important role in the economy, and low-skilled workforces might be rethinking their return to the job site this summer and fall. The PRO act will further complicate matters for the industries that leverage unionized labor or employ large workforces. For the corporations that must navigate these complications, some employers might need to adjust their employment offerings to entice workers back to work.
Low-Skilled Labor Shortages Impacting These Industries
“Help wanted” continues to be a key theme for many businesses, small, medium, and large, looking to bounce back and take full advantage of the expected economic rebound.
The Industries Experiencing Low-Skilled Labor Shortages
- Logistics, including general labor and warehouse workers
- Fast-food cooks and sales associates
- Building security and security guards
- Manual labor, including maintenance and lawn care
- General construction, including contracting and roofing
- Restaurants, including cooks and servers
- Logistics professionals, including postal workers and truck drivers
- Hospitality, including general cleaners and reception
- Administration and general office labor, including telemarketing
Why There Are Low-Skilled Labor Shortages and What Employers Can Do
Many workers have come to the simple conclusion that it would pay more to stay home rather than reenter the workplace at a minimum-wage job. Depending on the state or province the worker lives in, the minimum wage varies. Government payments might be more than what an employer is prepared to pay their workforces, creating an unexpected problem. Further, the cost of living continues to increase in many major cities across North America, and some workers might become more selective when searching for a new job, looking for higher wages, more flexibility, or better benefits.
It’s also important to consider that the emergence of the PRO Act in the United States will take away some of the tactics corporations have used to manage their unionized workforces. Many laborers will be given more freedom to organize and unionize amongst their fellow coworkers, while managers will no longer be able to question union formations in the workplace. The result could cause difficult labor negotiations or work shortages and stoppages resulting in extended picketing, strikes, and demonstrations.
Addressing Low-Skilled Labor Shortages with Increased Benefits and Wages
Higher wages are an obvious incentive that could encourage workforces to return to the labor market but might require some adjusting of the business’s bottom line. The minimum wage in your state might not be sufficient for some workers to make ends meet, and some laborers might seek out a new skill, explore self-employment, or start their own small business. The result has been a hesitancy to return to jobs that were typically in high demand.
Some business owners might need to reinvent or rethink their offerings to low-skilled labor. Increasing your hourly wage should help many workers reconsider their stance on employment and attract laborers that are both eager and hardworking. Further, some workforces might be enticed back to work through flexible working arrangements and increased benefits. Low-skilled laborers might also consider returning to work with a path in place that leads them towards further advancement in your company, the development of new skills, or support for post-secondary education.
Low-Skilled Labor Shortages and Temporary Worker Solutions From AFIMAC
AFIMAC offers business owners supplemental labor that can address ongoing labor stoppages due to a strike or labor dispute. Should your business be considering replacing a workforce due to the PRO Act, 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 a wide range of strike services, temporary labor solutions, and executive security/protection services to help you navigate any complicated labor disruption. Contact us directly to learn more.
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