Reasons Why There Is a Labor Shortage in the US

You may have noticed that there are more job postings than people to fill them. Sometimes, businesses have to close their doors because they can’t find the needed workers.

So what’s causing this national labor shortage? Let’s look at some reasons why there’s a current labor shortage in the United States.

An Aging Population

An aging population is one of the main reasons for the current labor shortage. As baby boomers retire, they leave behind a smaller pool of workers to fill their shoes.

Additionally, many millennials choose not to enter the workforce and opt for life experiences. This choice can be because of the high levels of student debt and a preference for a less-traditional lifestyle.


The COVID-19 pandemic has also had an impact on the labor shortage. With businesses forced to close their doors or operate at reduced capacity, many workers have found themselves out of a job.

Those still employed may be hesitant to switch jobs amid all the uncertainty. There are also still people who don’t want to work because of the risks associated with COVID-19.

The pandemic has also had an impact on the supply of labor. For example, there’s currently a shortage of truck drivers due to an increased demand for goods and a decrease in the number of people willing to travel.

Lack of Skilled Workers

The US has seen a decrease in the number of skilled laborers over the past few decades. There aren’t enough people with the skills necessary to fill many currently available jobs.

Many companies have taken measures into their own hands by investing in training and development programs to help employees gain the skills they need to be successful in their roles. However, this takes time, and sometimes, it’s not enough.

The current labor shortage in the US presents challenges and opportunities for businesses and individuals. There are many strategies to solve the labor shortage, but for now, companies will have to get creative to find the workers they need.

While it may be difficult to find qualified candidates for open positions, those who can find employment are in a strong position to negotiate higher wages and better benefits.

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Written by Logan Voss

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