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THE TOTAL VIEW
Written and Published by Ira S. Wolfe              September 25, 2002

The Dearth of a Workforce

Faced with the immediate task of finding enough workers to fill 5,000 jobs, the chief executive officer of a new 2,000 room casino in Atlantic City isn’t convinced the labor shortage is over. With a grand opening looming just weeks ahead, only 100 people have been hired.

By next summer, 12,000 new workers will be needed to fill all the jobs being created by new casinos and retail centers.

You think Atlantic City is an isolated case? Think again. Wal-Mart, bucking the trend of many employers, has plans to hire about 800,000 new hires by 2007 bringing its total employee count to over 2 million. That’s more employees than the population for the U.S. Armed Forces.

And only four months away from the deadline to fill over 30,000 airport screeners, the Transportation Security Administration has hired less than 10,000 individuals.

What is likely no big surprise to any manager who has attempted to hire employees over the past five years, this is what the TSA is learning about the pool of available workers:

      Many of the candidates, including individuals currently holding the position, cant meet even very basic qualifications such as proficiency in English and basic customer service skills.

Companies that have any plans to expand their workforce or fill vacancies as employees leave are finding that few people are qualified to fill the new positions or replace departing employees.

This current state of the workforce could be described as “worker dearth”. 

Worker dearth has two aspects. First is the quantitative factor. The pool of available employees, although currently larger than it has been for the past several years, is expected to be drained as soon as the economy heats up. Second and even more troubling is the qualitative aspect. The number of people who lack even the most basic life skills such as showing up for work on time is increasing, not to mention the lack of employees who have adequate communication and interpersonal skills and the technical skills required for most jobs today.

The fallout from worker dearth is beginning to takes its toll on those employees currently working. Specifically:

   1.   Productivity is up because the loyal employee is being asked to do more.
   2.   Jobs are not getting done and administrative work is piling up.
   3.   Higher level employees are doing jobs that should be delegated.
   4.   And more people are burning up (stress is high) and burning out (morale is low)
due to work overload.

Although more people may be looking for jobs, the number of entry-level jobs exceed the number of people available in the millions and the number of people who have the skills, proficiency and motivation to do higher level jobs is a drop in the bucket compared to the number of jobs available.

The Perfect Labor Storm may have veered off course for a while but it is growing larger and stronger. If the Perfect Labor Storm had a punch in the late 1990s, it will pack a wallop the next time around.


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Copyright 2002. All rights reserved. No portion of  The Total View  may be reproduced without written permission.