The US labor shortage — especially for blue collar workers — will continue through at least 2030, according to a new study released by The Conference Board.
It released a study is based on a survey of more than 200 human resource executives. Findings included 85% of companies in “mostly blue-collar industries” reported recruiting difficulty compared to 64% of companies in “mostly white-collar industries.”
The Conference Board also noted that in just 10 years, the US went from the recession to one of the tightest labor markets in history.
“The result is a labor market with critical shortages, especially for blue-collar and manual services employers who are experiencing much tighter labor markets than employers of highly educated white-collar workers — the exact opposite of prevailing trends in recent decades,” according to the study.
Causes of the blue-collar labor shortage include a shrinking supply of workers and soaring demand.
Factors driving the shrinking supply include:
Meanwhile, The Conference Board noted that other factors are driving demand for blue collar workers even as their supply shrinks. These include slowing labor productivity, which creates demand for more works; near-zero growth in manufacturing labor productivity; and fast growth in e-commerce.
The shortage is bringing bigger paychecks to workers and higher job satisfaction, according to the study. However, for employers, rising wages and labor turnover are squeezing profits.
Source: Staffing Industry Analysts