Search
All
Economics
Politics

Don’t Miss a Post. Subscribe now.

Explaining the Shortage of Skilled Workers and Why It Will Get Worse

•

•

11 comments on Explaining the Shortage of Skilled Workers and Why It Will Get Worse

•

Employment Population Ratios

  • The percentage of people age 16-19 who are working bottomed at the end of the great recession and has risen steadily since. 
  • Age group 16-19 is the only employment age group that is above the pre-Covid level.
  • Employment in age group 65+ has risen nonstop until Covid.
  • Employment in age group 60-64 took a deep dive. 

Employment Change in Thousands 

  • Since February 2020, employment in age group 60-64, a highly skilled age group, is down 5,364,000.
  • Since February 2020, employment in age group 16-19, a highly unskilled age group, is up by 72,000. 
  • Age group 16-19 is the only age group whose employment is above the pre-Covid high. 

Population vs Population in January 2000 

Key Population Stats Since January 2000 

  1. The total population has increased by 49.693 million.
  2. The population in age group 55 and older is up by 40.586 million.
  3. The population in age group 60-64 is up by 10.465 million.
  4. The population in age group 16-54 is up by only 9.107 million

Looking Ahead 

  • In the next 5 years, over 10 million workers will move from age group 60-64 into age group 65+ (point 3 above)
  • The employment population ratio of age group 60-64 is 48.99% down from 56.11% pre-Covid.
  • The employment population ratio of age group 65+ is 14.27% down from 20.10% pre-Covid.

The shortage of skilled labor is poised to get worse.

Subscribe!

Like these reports? I hope so, and if you do, please Subscribe to MishTalk Email Alerts.

Subscribers get an email alert of each post as they happen. Read the ones you like and you can unsubscribe at any time.

If you have subscribed and do not get email alerts, please check your spam folder.

Mish

Subscribe to MishTalk Email Alerts.

Subscribers get an email alert of each post as they happen. Read the ones you like and you can unsubscribe at any time.

This post originated on MishTalk.Com

Thanks for Tuning In!

Mish

Mike Shedlock

Recommended Articles

Comments to this post are now closed.

11 Comments
Newest
Oldest Most Voted
Dutoit
Dutoit
5 years ago
In the same time it seems that thousands of young people make useless studies (for which they have to pay), and end with very interesting and well payed jobs such that pizza delivery driver.
The same happens here. In France there is a very big shortage of roofers (you have to wait some time to have your roof repaired). A roofer is paid several times what a student of sociology of psychology can hope.
0
0
Jackula
Jackula
5 years ago
Excellent discussion, food for thought and planning going forward..
0
0
ThaomasH
ThaomasH
5 years ago
Maybe you mean you expect the recovery in the employment ratio to remain below trend or below what from some point of view it “should” be.  “Shortage” ought to mean that there are excess (in some sense) vacancies, but higher wages can sort that. 
0
0
njbr
njbr
5 years ago
Look at the list of the top 10 fields with shortages of “skilled workers”and you should be able to pick out 2 problems–first, the definition is so broad that it is virtually meaningless (other than the ever present goal of having employees that do their job well without creating hassles), and second, there are giant reasons why people have no enthusiasm for these fields.  My son just spent 16 months supervising 20 or so meth-head miners in their 40’s to 60’s (making $ 120K a year) on a water tunnel projet in the back of the far-beyond and he summarized it by saying “people are just awful….”
So top ten fields lacking “skilled workers”

1. Skilled trade workers (especially chefs/bakers/butchers, mechanics and electricians)

2. Drivers (especially truck/heavy goods, delivery/courier and construction drivers)

3. Teachers

4. Sales representatives 

5. Secretaries, personal assistants, administrative assistants, and office support staff

6. Management (executive management/corporate)

7. Nurses

8. Technicians

9. Accounting and finance staff (especially financial analysts, certified accountants, and bookkeepers)

10. Engineers 

Now which field does your child want to enter???
0
0
MrGrummpy-
MrGrummpy-
5 years ago
I live in a rural area in flyover territory.  There is no shortage of help wanted signs here.
0
0
davebarnes2
davebarnes2
5 years ago
I think the 60-64 age group is really two separate groups.
Those younger than 62 who cannot yet collect Social Security.
Those over, who can.
My wife had the high-paid corporate life until 10 years ago and then decided to work part time in retail for a bit of money, get out the house, and conversations with co-workers.
Then at age 62+, Covid. No job.
Collected UI benefits for a year. UI paid about the same as the job.
Now, at 63+, she is collecting SS. SS will pay about the same as the job (which has not come back).
And, for her, delaying SS makes no sense as I am 9 years older.
Also, today’s increase in our retirement portfolio is equal to a year of her SS benefits.
As for old farts similar to me at age 72, why should we be in the labor force?
P.S. We can easily fix this. Increase immigration. Have a points system similar to New Zealand.
0
0
TexasTim65
TexasTim65
5 years ago
Reply to  davebarnes2
Increase Skilled Immigration – There, I fixed it for you.
Immigrants with no skills are essentially useless because there are very few pure manual labor jobs left and those that are don’t pay much (ie nothing to tax).
0
0
davebarnes2
davebarnes2
5 years ago
Reply to  TexasTim65
Not true.
Farm (picking crops) labor.
Bedpan labor in old folks’ housing.
Dishwashers in restaurants.
Meat processing plants.
0
0
RunnrDan
RunnrDan
5 years ago
How about if the native population all become teachers (at least those that aren’t already in the FIRE economy) and we bring in all sorts of immigrants and “train” them to be our skilled labor force?  Of course, we will tax the heck out of these workers to ensure teachers & the administrative state workforce get well-deserved pensions!
0
0
Eddie_T
Eddie_T
5 years ago
Reply to  RunnrDan
I hear the sarcasm and I understand, but it makes me remember that most of the Central American immigrants have less than a 4th grade education.
We have about 15% of the overall population that has an IQ of less than 85, too. They are not going to be trained to do anything more complicated than using a shovel, most of them. 
People do have to actually WANT training, too. Half the African-American males in California who actually make it through high school can’t even pass the reading test, which is not very hard.
We need trained people, but that won’t solve all our problems with employment. 
0
0
Zardoz
Zardoz
5 years ago
Reply to  Eddie_T
“They are not going to be trained to do anything more complicated than using a shovel, most of them. “
They do, however make excellent rabble when you need to rabble rouse.
0
0

Decorate Your Walls with Mish Fine Art Images

Click each image to view details or purchase in the store.

Stay Informed

Subscribe to MishTalk

You will receive all messages from this feed and they will be delivered by email.