How to Address Labour Shortage in Currant World.

              


What is Labour Shortage?

Labour Shortage is currently a major issue in many parts of the world, particularly in developed countries. The COVID-19 pandemic has exacerbated the labour shortage by causing disruptions to the labour market and workforce, such as increased health concerns, caregiving responsibilities, and changes to workplace expectations.

According to (Doyle, 2022) labour shortage occurs when there are not enough qualified and willing workers to meet the demand for jobs in a particular occupation.

And also (Matemani and Ndunguru, 2019) describe a labour shortage occurs when the supply of qualified, available, and willing workers is insufficient to meet the demand for workers in a particular occupation under current market conditions.

So, the Labour Shortage can simply define as, a situation in which there are not enough qualified and willing workers available to meet the demand for jobs in a particular occupation or industry.

 

Is It an Issue?

Certainly, as mentioned at the beginning of this article Labour Shortage is one of the major issues which is a significant challenge for not only the organizational levels and also country levels faced in the current situation. With the COVID-19 pandemic, this issue develops as a major crisis which is more highly affected in developed countries than in others.

According to  (Ebbers, 2022)  the issue of the ongoing labour shortage is posing a new challenge for companies around the world as markets start to stabilize and production levels gradually recover to their pre-pandemic levels. According to research, there is a projected deficit of 85 million workers worldwide by 2023.

 

What are the Reasons for Labour Shortage?

Many factors can identify as reasons for the Labour Shortage.

·       Covid-19 Pandemic.

(Ebbers, 2022) describes the main driver of the current Labour Shortage as Covid-19.

Acknowledging the pandemic's impact on the current labour shortage is essential. By March 2022, the World Health Organization had reported over 6 million deaths attributed to pandemic-related causes, with millions more suffering from the long-term effects of the virus. Other than that, a huge range of employees left the workforce due to mental illness caused by the pandemic, disruption of immigration and additional pressures at the workplace due to sudden lockdowns and other extraordinary personal challenges caused by the pandemic also lead to the labour shortage.

 ·       Aging Workforce

Ageing populations in many countries result in a smaller pool of available workers. As people live longer and have fewer children, the working-age population is shrinking, making it more difficult to find available workers.

·       Law Wages

Low wages can contribute to a labour shortage by making it difficult for companies to attract and retain workers. Individuals prioritize economic needs when making employment decisions, and if wages are not competitive or sufficient, they may look elsewhere for work. Low wages can also lead to high turnover rates, further exacerbating the labour shortage.

According to ( Schweitzer and Khattar, 2021) the largest exodus of workers has occurred within low-paying service industries with a history of poor working conditions, while the United States has seen record-high quit rates over the past few months.

·       Technology Skills Gap

The technology skills gap refers to a shortage of workers with the necessary technical skills to fill available jobs in the technology sector. This gap can contribute to a labour shortage because companies may struggle to find qualified candidates for technical positions, which can result in unfilled positions and a reduced ability to innovate and grow. In addition, the increasing importance of technology across industries means that the technology skills gap can have a ripple effect on the overall labour market, as many jobs now require at least some level of technical proficiency.

 

Solutions for Labour Shortage

·      Increasing wages:

Employers can offer higher wages to attract and retain workers. This can be particularly effective in industries with high demand for labour.

Employers who are complaining of a "labour shortage" can easily solve the issue by making workers a more attractive offer. A growing number of employers are already enhancing their compensation packages, offering better benefits, and improving working conditions to increase their competitiveness in the labour market (Schweitzer and Khattar, 2021).

 ·      Investing in training and development:

Employers can invest in training and development programs to upskill their existing workforce, as well as attract and retain new workers by offering opportunities for career growth.

 ·      Flexible work arrangements:

Offering flexible work arrangements, such as part-time, remote, or flexible hours, can help attract workers who are looking for a greater work-life balance.

 ·      Immigration policies:

Relaxing immigration policies can help bring in more workers to fill labour shortages. This can be particularly effective in industries that rely heavily on immigrant labour.

 ·      Automation:

Implementing automation technology can help reduce the need for labour in certain industries, freeing up workers to focus on higher-skilled tasks.

 ·      Government policies:

Governments can implement policies to incentivize workers to enter certain industries, such as offering subsidies or tax breaks to businesses that offer training programs or higher wages.

 ·      Collaborative efforts:

Employers can work together with educational institutions and government agencies to create partnerships and programs that attract and train workers for specific industries or jobs.

                                  

 Conclusion

Labour shortages can arise from a variety of factors, including demographic shifts, economic growth, skills mismatch, immigration policies, pandemic-related factors, and generational attitudes. However, there are several solutions that employers and governments can implement to address this issue, such as increasing wages, investing in training and development, offering flexible work arrangements, relaxing immigration policies, implementing automation, and collaborating with educational institutions and government agencies. By taking proactive steps to address labour shortages, employers can attract and retain the skilled workers needed to drive their businesses forward.


References

Doyle, A. (2022) What is a labour shortage? [online] New York: The Balance. Available from: https://www.thebalancemoney.com/about-us-5104704#toc-contact-us [Accessed 15 April 2023]

Ebbers, S. (2022) Why is there a global labour shortage? [online] Amsterdam: Randstand. Available from: https://www.randstad.com/contact-randstad/ [Accessed 15 April 2023]

Matemani, J.K., Nunguru, B. (2019) Impacts of labour shortage on organizationperformance: a case study ministry of water and irrigation-Tanzania. International Journal of Economics, Business and Accounting Research, 3 (3) 196. Available from https://jurnal.stie-aas.ac.id/index.php/IJEBAR/article/view/575/324 [Accessed 15 April 2023]

Schweitzer, J. and Khattar, R. (2021) It’s a good jobs shortage: the real reason so many workers are quitting. [online] Washington: CAP. Available from: https://www.americanprogress.org/article/its-a-good-jobs-shortage-the-real-reason-so-many-workers-are-quitting/ [Accessed 16 April 2023]

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Comments

  1. Sugath Demore16 April 2023 at 08:20

    Good artcle regarding Labour shortage and clearly define the reason for Labour shortage due to pandemic situation as well as other reasons. Well done!

    ReplyDelete
  2. Saraj Kahingala16 April 2023 at 10:47

    You have clearly explained the solutions to the labor shortage. The government and private sector should take proactive actions to solve this issue. By taking proactive actions to address labor shortages, employers can retain skilled workers for long periods of time and drive their business successfully. Well done Gayantha.

    ReplyDelete
  3. Lalindu Wijesinghe16 April 2023 at 20:57

    Good job, this topic is very time driven and labor shortage not only impacts to the business and it also impacts to whole economy of the country, When we summarize solutions for managing labor shortage, can describe, practicing ethics in human resource management is the way.

    ReplyDelete
  4. Tharanga Jayasundara17 April 2023 at 03:57

    Rising inflation is a different issue that many analysts are keeping a close eye on. Many feel that the current labor scarcity will lead to higher wages, higher prices, and a slower post-pandemic recovery, even if it is still debatable whether it causes inflation. Inflation, if unchecked, may trigger a catastrophic crisis that would likely take years or decades to manage.

    Good implementation !

    ReplyDelete
  5. Gayantha Costa17 April 2023 at 10:12

    Thanks for all of your valuable comments. The labour shortage will be a major issue in the future world. Therefore all organizations and policymakers should clearly understand its impact and give the most suitable and practical solutions to minimize the bad effects on future organizations. Otherwise, future organizations will face many difficulties even in the continuation of basic activities.

    ReplyDelete
  6. Tharanga Wanigasundara21 April 2023 at 02:46

    Addressing the labour shortage will require a multi-faceted approach that involves government policies, investment in technology and education, and a shift in attitudes towards work and employment.
    Well done.

    ReplyDelete

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