First Things First

The Skilled Worker Shortage Isn’t Going Away. Here’s What We Can Do About It.

For some time employers have had trouble finding enough skilled workers to fill job vacancies.

The Society for Human Resource Management found 83% of employers had difficulty recruiting suitable candidates in the last year.

Nearly half (46%) of contractors said the availability of skilled labor was a “high concern” in the most recent USG Corporation + U.S. Chamber of Commerce Commercial Construction Index.

There are more job openings (7.3 million) than unemployed workers (5.9 million), as noted in last week’s newsletter.

This puts sustained economic growth at risk.

Unless we get education and workforce development policies right this problem will be exacerbated.

Research from the American Action Forum finds that by 2029 “the nation as a whole could face a shortage of about 765,000 needed workers with the skills that come from an associate degree or some college.”

The situation could be worse for positions requiring higher levels of education.  Employers could face a shortage of 8.62 million workers with bachelor degrees or higher.

All told, AAF estimates this skills gap could cost our economy $1.2 trillion in lost economic output.

What can we do?

Improving education from pre-K onwards is a start. Schools need to be more agile in their coursework and programs to meet the needs of an ever-changing labor market.

At the same time, educational institutions and businesses must work together to ensure training for in-demand skills is available.

Talent Pipeline Management, developed by the U.S. Chamber Foundation, is a strategy that helps coordinate state and local leaders, business associations, and companies to create a steady pipeline of talent.

On the technology front, the Foundation is also working with companies on the Job Data Exchange (JDX), an open-data toolset to help employers communicate their hiring needs to their education and workforce partners.

Through these and other activities, the business community can shrink the skills gap, ensure workers have skills for productive careers, and make sure the economy has enough workers to continue growing.

Diving In

Business is a positive force not only for our economy, but for our communities. That is why we have launched our new Young Entrepreneur Series, which highlights the next generation of business leaders who are building innovative companies that aim to solve some of society’s most pressing problems. From the entrepreneur who is combating drug-facilitated sexual assault to the young business owner who is using virtual reality to improve the well-being of senior citizens, these leaders are redefining entrepreneurship and building social impact into their missions and business plans – resulting in companies that truly embody the meaning of “business for good.” Check out the entire series, here.

Have a business-related long read you want to share? Please email me.

The Big Picture

U.S. Chamber CEO Tom Donohue (left) led a coalition of trade associations in calling Congress to approve the U.S.-Mexico-Canada Trade Agreement (USMCA).

Watch the press conference.

Looking Ahead

August 1, 2019: The Cyber Security Series – San Diego, powered by FICO, will discuss growing cyber threats and the importance of cyber insurance as a risk mitigation/risk transfer tool for organizations of all sizes.

September 12, 2019: The BusinessH2O: Water Innovation Summit will showcase innovative water technologies and best practices that support economic growth in the driest places in the world.

Please forward this newsletter to a friend. And don’t forget to send me your tips and comments. Also, keep up with latest business policy issues by bookmarking Above the Fold and following @seanhackbarth and @uschamber on Twitter.