Given that the U.S. Labor participation rate has experienced a steady decline over the past 20 years, it is extremely likely that this will not disappear anytime soon. According to the U.S. Bureau of Labor Statistics, the current participation rate is about 61.6 percent. This means that nearly 40 percent of the eligible population is not contributing to the American workforce resulting in shifts to the economy and the job landscape over the coming decade.
But why is our labor force shrinking? This is due to a number of factors, and the covid-19 pandemic only added to this issue. Additionally, Baby Boomers are retiring more and more every year, and the generations below them are entering the workforce at a much slower rate, seeking higher education avenues and pursuing other endeavors instead of entering the workforce as soon as they turn 18. You can read more about that trend here. Professionals conclude that in 2020 nearly 30 million baby boomers exited the workforce, leaving industries unable to replace so many employees at the same rate that they’re retiring.
Why is the labor force experiencing a downward trend while wages trend up?
As an employer, filling these positions is challenging and currently people are unable or unwilling to work at the prevailing wage rate. For candidates seeking employment, this is a positive. In efforts to remedy this scenario, employers are increasing wages to record highs. Throughout industries, employers are casting their nets into an overfilled pool of candidates, forcing them to drive wages up to beat their competitors to hiring the best candidates. Advertised wages have risen by 16% since February of last year, including for truck drivers and forklift drivers.
If you are interested in getting a job at a competitive price, contact Performance Staffing Solutions today. Our recruiters can help candidates acquire temporary positions and skill market in specific trade industries. For employers, Performance Staffing Solutions can take the weight of searching for qualified candidates off your shoulders during this challenging and competitive time.