This Month in Labor

This Month in Labor is nGROUP’s look around the world of labor-intensive operations, trends, changes, and news. This month, we’re continuing to watch as the American economy slowly claws its way back to pre-pandemic levels, albeit with a very different look.

Manufacturing jobs continue to go unfilled

Thousands of entry-level manufacturing positions remain unfilled in the United States, despite still-high unemployment figures. American manufacturers have experienced a massive surge of renewed demand as money flows back into the economy. However, many firms are struggling to fulfill that demand thanks to a shortage of both skilled and entry level workers.

Some 77% of surveyed manufacturing execs predict difficulties in hiring and retaining workers, both this year and beyond. Many blame bad industry perception for the gap between job demand and actual positions filled.

Younger workers have heard for years that automation is taking over manufacturing jobs, resulting in many dismissing those careers as dead-ends. On top of that, warehouse positions at companies like Amazon and Chewy are competing for non-technical entry-level labor, and often winning. That, despite the fact that warehouse jobs typically offer fewer paths to advancement.

So, what to do? One idea is for American manufacturers to reassess their recruiting. Companies should try making inroads at high schools across the country, advertising the real benefits of a career in manufacturing. Additionally, expanding recruiting efforts to more diverse populations could help find workers that the industry has historically ignored.

How to find (and keep) warehouse workers

Speaking of warehouse jobs, Supply Chain Brain recently put together a piece about those positions and the difficulties employers are having there.

Often, the aging workforce is cited as an issue with warehouse jobs. However, the younger workers bring their own struggles. The expectations from Gen Z of what the workplace should look like don’t match the warehouse realities.

As the article points out, workplace safety and security are paramount concerns right now. That doesn’t just mean adequate protections against covid in the workplace, but also expansive benefits packages that can cope with a serious illness.

Rethinking the job itself (and the tools used on the job) will be key to finding and keeping new workers. SCB discusses shifting away from relatively heavy and bulky equipment, like RF guns, and replacing them with light, wearable tech that simplifies the job. In general, today’s workers are much more comfortable with technology than previous generations. They demand accessible, intuitive tools and software like the ones they use in so many other areas of their lives.

Finally, employers must be able to provide paths to advancement. Gen Z employees are accustomed to matriculating through the ranks, gaining seniority and the privileges it entails, like better pay and benefits. But it’s not all about better salaries. “Shout-outs” and other forms of company-wide recognition and praise are important to giving your workers a greater sense of satisfaction in their jobs — and thus raising the odds they’ll perform well and stick around.

The k-shaped recovery hurts women, minorities, and low-wage workers the most

Intelligence from the Pew Research Center demonstrates that the American economy is recovering, but that it is not recovered.

Pew’s work goes deeper into the details of the employment and economic downturn by discussing those groups who were most affected by the events of 2020. Perhaps unsurprisingly, minorities and women suffered the most.

When covid first struck and the bottom fell out of the job market, women, especially Black and Hispanic women, were more likely to lose their jobs. As the article points out, that stands in contrast to the recession of 2008-2009, when men were more likely to be affected. The difference now is that covid had a stronger effect on industries that employ more women: education, hospitality, leisure, and health services, to name a few.

While the gender breakdown of job losses has become more equal over the course of the pandemic, a larger concern is that official statistics may be underrepresenting the total number of Americans who are out of work. When controlling for factors such as labor force exits, as well as correcting inherent problems with pandemic-era governmental surveys, it may be that the actual unemployment rate is as high as 9.9% — much greater than the official 6.6%.

In addition, the worst job losses in the pandemic went to those who earn(ed) less than $15 an hour. These low-wage workers suffered a nearly 12% loss to their ranks (compared to a 5% loss for “middle wage” workers, and a 1% growth for “high wage” earners). Once again, the pandemic is to blame for forcing a contraction in service-based industries like hospitality and leisure.

How can we help you overcome your labor headaches?

nGROUP is a staffing and labor management provider that helps labor-intensive operations run a more cost-effective and productive workforce.

We help you find enough great people so your shifts are always full. We provide on-site management to relieve your team and guide those teams to maximize their production, while keeping costs low. We use in-house technology to provide visibility into the inner workings of your operation, giving you the information you need to discover more efficiency.

If you suffer from labor management headaches — if you and your team are stretched to the limit by labor-related problems — give us a call today. We help retail distribution, wholesale distribution, reverse logistics, fresh food production, and light manufacturing operations gain an edge through a more cost-effective, productive labor force.

Don’t let labor headaches drag you down. Call nGROUP today, and find the cure.