Talent Shortage in 2023: A Scarcity Overview

.While forecasts indicate that the United States may just barely dodge the recession that much of Europe is currently experiencing, it faces a significant problem in addressing the current talent shortage and the resulting labor shortfall.

Employers in a variety of industries have been deeply concerned about a talent shortage throughout the majority of 2022.

Let’s examine the skills shortage in several US economic sectors in more detail and discuss what companies can do to address the problem.

US talent shortage 2023

Candidates Are Focusing on the Importance of Environmental, Social and Governance (ESG) Frameworks

It’s common to believe that increasing pay will attract more employees during lean economic times. Quite plainly, this is an unsustainable strategy for businesses and is based on an erroneous assumption. Research shows that the US war for talent is limited in how far it can be influenced by financial incentives.

Instead, people are on the lookout for job advancement and employment with a caring organization.

The COVID-19 pandemic gave environmental, social, and governance (ESG) frameworks greater importance than before. People now have more options when it comes to the employers they wish to work for in the wake of the Great Resignation. The most appealing brands were those who looked out for their employees throughout the challenging COVID months.

It makes sense that so many Americans desire to work for an organization that has a commitment to the environment and socioeconomic issues when you factor in the current climate crisis and movements like Black Lives Matter and #MeToo.

Diversity Equality and Inclusion (DEI) Continues to Be a Challenge

While the workforce is undeniably emphasizing the importance of working for an employer who upholds comparable moral and ethical standards, more has to be done to advance the diversity agenda. Almost every industry we looked at needed a more diverse staff.

This was particularly pronounced in fields that have long fought with prejudice. Two excellent examples are oil and gas and life sciences and pharmaceuticals. Both are well recognized to be predominately male environments. Although there has undoubtedly been progress, more work has to be done.

Demand is Increasing Exponentially

In the US, the effects of the Great Resignation and Great Rehiring are still being felt. The need for workers has remained strong into 2022. For the year ending in October 2022, data from the Bureau of Labor Statistics (BLS) showed that employment levels increased in 46 states.

In any typical setting, a rise in the number of employed people makes hiring challenging because there are fewer people looking for work. The Great Resignation, which has seen more people change jobs than most of us are used to, has made the challenge for businesses today more acute.

Although this trend may have surfaced in the first part of 2022, it has far from vanished. The Job Openings and Labor Turnover Survey (JOLTS) from the BLS estimates that in September 2022, nearly 4.1 million workers left their jobs. Employers must deal with a lot of market change in this day and age.

Digital Skills Are Highly Sought After

In the United States, demand for digital talent has long been high across a wide range of industries. However, some specialties have seen a greater shortage of workers than others. FinTech specialists are in particularly high demand in the financial and banking industries, which is partly due to the industry’s ongoing need for digitization.

The recent reports that major internet companies have fired a significant number of workers, however, will probably alter the market for digital talent over the next few months.

How Can Companies Address the Talent Shortage?

There is no easy answer to the US’s talent shortage. But there are steps you can take to help keep your company out of the deep end:

1. Be a Considerate and Caring Employer

The brands that people wish to associate with are increasingly varied. As a result, you’ll have trouble hiring if your business doesn’t qualify for talent pools. In 2023, stating your position on the ESG agenda will be crucial.

2. Improve Diversity and Inclusion

More needs to be done to enhance diverse hiring throughout the entire talent supply chain. Limiting the candidate pool is never a good idea (after all, a diverse workforce is more productive, innovative and motivated). It makes much less sense to do so when there aren’t enough employees.

3. Encourage Skills Development

Although more immediate fixes might be required, the main issue is that certain abilities are just becoming harder to come by. Always put participating in skill development on your schedule.

4. Leverage Data and Technology

The administration of the workforce can be greatly streamlined with the help of data. It’s crucial to understand which suppliers are the most efficient, where talent from other parts of the company may be used, and how much money is going into different channels.

5. Leverage Your Partnerships

Lack of talent is a problem for every company. Together with your partners, seek outside counsel on areas that could be improved upon to increase the diversity of your talent pools.

Noon Dalton is Helping Overcome the Talent Shortage

Keep in mind the above-discussed tactics if you’re having trouble attracting and keeping talent. There are several strategies to address the talent shortage and keep your business afloat. From retraining and upskilling current employees to embracing globalization and casting a wider hiring net, there are simple ways to solve the problem.

Do you need help tapping into the global talent pool to fill skill gaps in your company? Reach out and we’ll be in touch with the best outsourcing strategy for you and your business.