FACTORING BLOG

Skills-Based Hiring, Upskilling, and Reskilling!

We have a labor shortage! Yes, we know this is not new news, but we also have a skills shortage and skills mismatch. The question is, what are we going to do about it? How will the Staffing industry help our clients fill more open positions?

Skills-Based Hiring, Upskilling, and Reskilling!

First, let’s look at some current stats.

As of January 2024, there are 8.8 million open jobs in the US, and although this is down from 12 million open jobs in March of 2022, we are still faced with not enough people in the workforce to fill these positions.

Chart of National job openings vs. number of unemployed workers as of January 2024

Where are the people?

  1. We have an aging workforce. This chart from Statista will show the % of the US population 65 years and older from 1950 – 2050. Access the chart HERE.
  2. According to the U.S. Census Bureau, our birth rate has been falling for decades which will continue to impact our workforce. In 1990 there were about 70.77 births each year for every 1000 women ages 15-44.  By 2019, there were about 58.21 births per 1000 women in that same age group.
  3. Labor Participation rate is dropping and will continue to drop. How do we get the 16-24 year olds back into the workforce? Check out this chart from the Bureau of Labor Statistics.
  4. Migration to the U.S. is at its lowest level in decades. The U.S. Census Bureau data shows that net migration to the U.S. between 2020-2021 only contributed to a 247,000-person increase in the population. Compared to the prior decade’s high of a 1,049,000 increase between 2015-2016 due to immigration, is a significant drop.

The Skills Gap / Mismatch

According to the World Economic Forum, at least a billion people will need to be reskilled over the next decade to deal with technological transformation.

According to the US Chamber of Commerce, to fill open jobs needed today and in the years to come, employers must double down on reskilling and upskilling their current workforce.  Read More.

68% of workers are willing to retrain in any situation, and 28% are willing to retrain if necessary, with 4% not willing to retrain. As employers and leaders in the staffing industry, we must develop these programs and solutions to support the workforce of the future.

What about skills-based hiring?

In June of 2020, President Trump signed an executive order implementing merit-based reforms that will replace degree-based hiring with skill-based and competency-based hiring. This order was limited to the federal government’s hiring practices, but skills-based hiring practices must become mainstream if we are to solve our nation’s staffing shortage problems.

Scale Funding invites you to SAVE THE DATE for an upcoming webinar on this topic. Sheri Tischer will lead the discussion and has invited staffing industry experts Marnie Byford, COO of Supreme Staffing, and Maya Huber, PhD and Co-Founder of TaTiO, for an engaging panel discussion where you will walk away with immediate takeaways to fill more orders.

February 22, 2024, at 12:00 Noon Central time.

(Registration details to follow in our February newsletter as well as Social platforms such as LinkedIn)

 

 

 

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