Employers continue to struggle with the alarming labor shortages primarily attributed to unskilled labor force and aging population. There are currently 6.6 million unemployed individuals despite 6 million available jobs in the market, as reported by the Bureau of Labor Statistics in June 2018.
Bills have been passed in the House of Representatives to strengthen career and technical education, and help low-income individuals transition from welfare to work. Cities even start to incentivize people to move in by offering money or assistance on home purchases and student debt.
While these may prove effective, it might take some time before they affect current demand or ease the pressure on business owners looking for qualified workers. Businesses are pressured to increase wages or add employee benefits. Additional labor costs, however, are likely to increase the prices of goods and services, leaving businesses uncompetitive in their industries or the global market.
One of many solutions companies adopt is outsourcing skilled and specialized workers from foreign countries. Hiring remote employees at relatively lower salaries and no overhead significantly lessens costs passed on to consumers. This is especially beneficial for companies that require a lot of administrative tasks and small businesses that can’t afford to join the wage race.
Ultimately, all sectors are burdened by this gap and until it is bridged, employers have to rethink their processes and opt for innovative solutions.