What does the 2020 census data show us?
The 2020 census data is starting to show that the impact of Covid may not be the only reason we see the labor force participation rate decreasing.
There are 7.5 million unfilled jobs, and the unemployment rate is rising, which is a head-scratcher for sure.
By focusing on two aspects of the situation, the talent shortfall and the census, some things become more evident.
The research reveals that three additional culprits are contributing to this change.
- A Smaller Labor Force: As population growth continues to slow, fewer children are being born, and we are starting to feel the impact of that on the labor market.
- Lower Work Rates: Current Employment levels represent the lowest working labor force participation rate among working-age people EVER! The census even reports fewer prime-working age men and women in the market. Millennials and Gen Zs not getting married, not working full-time, and are opting to continue living with parents or grandparents.
- The Big Resignation: There is an increase in the number of baby boomers leaving the workforce. As these people go, we are losing the skills they offer and the wisdom they possess. This combined with having fewer new people to train translates to no one to “pass the torch” to or from!”
So, what does this all mean to you as the business owner?
It means fewer experienced employees are sticking around to mentor and train the new workforce. It also means a scarcity of new talent to choose from.
Which all translates to:
- being able to run your business with smaller crews
- the incredible importance of attracting and retaining the best talent
- the significance of getting the right people in the right jobs
- the need to provide strong leadership
- AND enhanced growth and development opportunities for new and existing employees.
As these changes are impacting businesses, we can do things to be proactive and keep our employees engaged and fulfilled. By focusing on behavior and helping your employees feel like a vital part of your community you can develop the tools to help attract and retain a talented workforce.
At KYT, we are focused on supporting organizations like yours in navigating changes with offerings such as Behavioral Awareness and Management, Strategic Planning, Team Building, and Leadership/Professional development.