World’s population is nearing 8 Billion. Yet there is a global shortage of labour.
Yes, you read that right. The world with 7.9 billion people on it, is facing a labour shortage after the pandemic. The pandemic has affected every aspect of our lives hasn’t it? But without further adieu, let’s talk about labour shortage and its causes.
What is Labour Shortage?
Labour shortage generally occurs when there is a difference between the labour required and the actual labour supply. In such a situation the labour supply fails to meet the demand. This causes a shortage of labour. There are various factors affecting the supply of labour, listed below are the major causes:
Causes of Labour Shortage
– Covid-19
It would be impossible to cover the causes without addressing the elephant in the room. As of March 2022, WHO has reported more than 6 million people deceased due to pandemic-related issues. millions of others are dealing with the long-term effects of the virus. Covid-19 has not only affected the physical health but also the mental health of the employees. The morale of the employees is on an all time low due to the pandemic.
– Skill Gap
While the loss of skills and expertise due to retirement is undoubtedly a factor. The integration of modern technology, AI, and automation in the workplace is the primary driver of the skill gap. While this new technology can simplify business operations and increase workplace efficiency, it also requires employees who have the necessary abilities to use it. This isn’t a new problem for companies, but it’s become more serious since the outbreak. Because so many businesses are dealing with production and supply chain issues as a result of the epidemic, there is a greater drive for workplace automation. The rising usage of technology in the workplace requires a greater need for businesses to get the necessary technological skills.
– Shift in Expectation
Many employees encountered additional professional demands during the pandemic. Alongside layoffs and lockdowns, unusual personal obligations like homeschooling their children and caring for aged parents. Workers’ expectations have shifted as a result of these stressors. The need to maintain a healthy work-life balance is at the forefront of these aspirations. Remote work choices, flexible schedules, increased paid time off, and greater liberty to determine their own schedules are all things that today’s workers want. Furthermore, some people are willing to move employment or exit the industry completely.
– Low Wages
Shift in expectations also reflect in the expected pay for the employees. While many are changings jobs due to better job opportunities, some are leaving just for a higher pay. In some areas of the world, worker’s pay increases may not be enough to cover the cost of rising inflation. And hence it is obvious for workers to shift to a better paying job.
Most Affected Industries
In conclusion, yes, there is a global labour shortage. There are some measures that you can take to ensure hiring of proper candidates. Implementation of Spine HR Suite with the powerful Recruitment and Onboarding module.