Shortage of skilled professionals in the country of origin is an impact
Answers
Shortage of skilled professionals in the country of origin is an impact on the economy.
The skilled labor shortage is no joke for the manufacturing industry. With the national unemployment rate falling to 3.6% in April (the lowest since December 1969), there aren’t many people looking for work. And, while the U.S. manufacturing index shows a slowed rate of expansion over the past year, American manufacturing is still growing.
Besides the low unemployment rate and a steady manufacturing industry, the labor shortage can also be attributed to the surge of retiring Baby Boomers. The younger generation entering the workforce is made up of fewer people, and the majority of them hold college degrees. Overall, manufacturing isn’t the sector they see in their futures.
Challenges
With the widening skills gap, manufacturers are feeling the pressure. Here are four major ways the skilled labor shortage is impacting organizations nationwide.
Overtime Hours
When demand goes up, manufacturers increase production. When there aren’t enough workers to do the job in the amount of time promised, manufacturing technicians put in longer hours. This can quickly lead to frustrated workers and a strained budget, driving profits down.