STALEMATE in Labor Market

There is a DISCONNECT from mismatched expectations on both sides between businesses and workers.

We have on one side: Businesses unwilling to pay competitive wages and on the other side: Workers overestimating their skills or holding out for all-remote work

This makes for NOT an easier time for hiring. There are challenges on BOTH sides. So when Powell speaks of an imbalance with DEMAND exceeding SUPPLY, yes it is correct, however, let’s have a look under the hood.

As we look deeper from our manufacturing b2b view, we see skills set imbalances as a key driving factor. Expectations have changed significantly on both sides. Higher turnover & seeking expenses for businesses due to these mismatches coupled with a time intensive sifting process from “too many” mismatches with the qualified applicants getting lost in the mix.

Per NFIB (National Federation of Independent Business), an estimated 64% of small businesses nationwide were trying to hire workers in September 2022 but 89% reported few or NO qualified applicants.

There is an IMBALANCE.

Expectations have changed significantly on BOTH sides.

It is getting better but challenges still present.

At our business we are experiencing:

• Lower Productivity w/ workers expecting higher pay/less output

• Applicants are overqualified or underqualified for positions- imbalance

• Flood of applicants for all positions but skill set mismatch

• Higher Turnover & Seeking Expenses for Businesses:

• Process of sifting through “too many” mismatched applicants is timely & costly

• Higher Turnover after hiring due to mismatch

• Qualified applicants getting lost in the mix

This will take time to balance out.