handle the Largest Labor Shortage in US History: Strategies for Employers and Job Seekers

America's Hidden Problem: Millions of Open Jobs and a Shrinking Workforce

This article is written by Tina Hamilton, an Entrepreneurs' Organization (EO) member in Philadelphia and the founder and CEO of myHR Partner, a human resources outsourcing firm that manages HR for small and midsize businesses throughout the United States. The company has appeared on the Inc. 5000 list four times and was named to the 2025 Inc. Best Workplaces list. An HR expert, Hamilton shares information about a hidden problem building in the U.S. workforce.

The U.S. job market has a contradiction hiding in plain sight: Companies can't find enough workers, while millions of people are struggling to get hired. Warehouses, hospitals, and factories are filled with 'Now Hiring' signs, yet qualified candidates are still being passed over.

The Problem Isn't a Lack of Jobs or a Lack of Workers

The problem isn't a lack of jobs or a lack of workers. It's that the two are increasingly failing to connect. Everyone is talking about AI, with good cause. Will it take your job? Will it replace your kid's first career step? A bigger and quieter problem lies just beneath the surface: The U.S. is heading toward what may be the largest labor shortage in its history.

The Numbers Don't Lie

According to research from the Lightcast project, a gap of roughly 6 million workers by 2032. Georgetown University's Center on Education and the Workforce projects a shortage of 5.25 million workers with education beyond high school, including 4.5 million who will need at least a bachelor's degree, as retirements and job growth continue to outpace the supply of qualified talent.

A lot of business owners are asking: If there's a shortage that large, why does it feel like nobody can get hired?

A Shrinking Workforce

Part of the answer is in numbers most people don't see. The national unemployment rate is a tidy 4.2%, but labor force participation, the share of adults working or looking, has dropped to 61.5%. More than a quarter of unemployed workers have been jobless for six months or longer. There are now more open jobs than unemployed people to fill them.

So, it's neither a shortage of open positions nor of people. It's a shortage of the right people, in the right place, with the right skills, and a shrinking workforce as baby boomers retire and fewer young people replace them.

The Mismatch is Measurable

The Society for Human Resource Management found that roughly a third of job openings can't be filled by anyone whose most recent job was in a related field. Employers want very specific experience. Job seekers, especially recent grads with general degrees, often don't have it. The shortage will hit hardest in nursing and healthcare, skilled trades, construction, teaching, and precision manufacturing.

These jobs require a physical presence, a license, or years of hands-on skill—work AI cannot do. This should sound familiar to almost any employer, in every region. Health systems are always recruiting nurses and clinical staff. Manufacturers need welders, machinists, and electricians. In logistics hubs, warehouse and driving jobs sit empty, not because the work dried up, but because companies can't find enough trained, willing people.

How to handle the Shortage

So, what's the solution? For employers, the old 'post a job and hope the right résumé shows up' playbook won't cut it. Instead, try partnering with local career and technical schools, investing in apprenticeships instead of waiting for fully formed candidates.

Strategies for Employers

1. Partner with local career and technical schools: Collaborate with local schools to develop training programs that meet the specific needs of your industry.
2. Invest in apprenticeships: Provide on-the-job training for new hires, allowing them to learn the skills they need to succeed in your industry.
3. Offer competitive wages and benefits: Attract and retain top talent by offering competitive wages and benefits.
4. Develop a reliable recruitment strategy: Use a variety of recruitment channels, including social media, job boards, and employee referrals, to attract a diverse pool of candidates.
5. Consider hiring candidates with transferable skills: While a candidate may not have direct experience in your industry, they may have skills that are transferable, such as communication or problem-solving skills.

Strategies for Job Seekers

1. Upskill and reskill: Invest in training and education to develop the skills you need to succeed in your desired field.
2. Network and build relationships: Build relationships with industry professionals and attend networking events to learn about job opportunities and get tips from people in your desired field.
3. Consider non-traditional industries: While some industries may be experiencing a shortage of qualified candidates, others may be struggling to find workers. Consider exploring non-traditional industries or roles that align with your skills and interests.
4. Be flexible: Be open to different types of work arrangements, such as part-time or freelance work, and be willing to consider different locations or industries.
5. Develop a personal brand: Establish an online presence and develop a personal brand to showcase your skills and experience to potential employers.

The labor shortage is a complex issue that requires a complex solution. By understanding the root causes of the shortage and implementing strategies to address it, employers and job seekers can work together to find solutions. Whether you're an employer looking to attract and retain top talent or a job seeker looking to develop the skills you need to succeed, there are steps you can take to handle the labor shortage and achieve your goals.

Takeaway

The labor shortage is a complex issue that requires a complex solution. Employers and job seekers must work together to find solutions, including partnering with local career and technical schools, investing in apprenticeships, and developing a reliable recruitment strategy.

Expert Comment

The labor shortage is a pressing issue that requires immediate attention from policymakers, employers, and job seekers. By working together and implementing strategies to address the shortage, we can create a more sustainable and equitable workforce for the future.

FAQ

Q: What is the cause of the labor shortage? A: The labor shortage is caused by a combination of factors, including a shrinking workforce, a mismatch between job openings and qualified candidates, and a lack of training and education programs that meet the needs of industry.

Q: What can employers do to address the labor shortage? A: Employers can address the labor shortage by partnering with local career and technical schools, investing in apprenticeships, offering competitive wages and benefits, and developing a reliable recruitment strategy.

Q: What can job seekers do to address the labor shortage? A: Job seekers can address the labor shortage by upskilling and reskilling, networking and building relationships, considering non-traditional industries, being flexible, and developing a personal brand.

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