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Blue-collar Labor Shortages

Short-termism  

With economic growth likely to continue at a relatively strong pace in the first half of 2019, an already tight labor market is likely to get even tighter. But there is a twist—the threat of labor shortages is more acute in blue-collar and low-pay services occupations than in more highly skilled white-collar occupations, the exact opposite of the prevailing trends in recent decades. Besides the short-term implications, companies should also prepare for more recruitment and retention difficulties in the next decade as there are few entrants and many exits out of the blue-collar and low-pay services workforce.



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Gad Levanon | Frank Steemers

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