June 7, 2022
Dealing With Labour Shortage In 2022
The International Labour Organization (ILO) confirmed that with over 237 million COVID-19 cases worldwide as of October 2021, many have been kept from work, causing offices and other workplaces to observe mandatory restrictions that induced staff shortages across all industries. As new variants of the virus continue to appear in 2022, experts have predicted that the global worker shortage may only worsen. In the US alone, 11.3 million vacant positions were open in January with not enough workers to fill the same.
Factors Affecting Labour Shortage in 2022
- Labour Force Participation
According to the ILO, although the labour force participation rate is expected to recover by 59.3% in 2022 after declining in 2020, it is still a few points lower below the pre-pandemic level in 2019. With that, the global unemployment rate is still projected to remain higher until at least 2023, with the number of individuals not participating in the labour force to reach 7 million in 2022 from 186 million in 2019.
- Global Trade
According to studies, international trade has a significant impact on labour markets as it drives structural changes and productivity by influencing the level of employment, income, and other labour outcomes. Consequently, the more steady global trade is, the more workers will become available as wages and job security become more stable. However, according to economists, the global trade outlook for 2022 remains very uncertain due to high fuel prices, the increase in shipping costs, and the existing backlogs across major supply chains that could continue all throughout the year.
How to Deal with Labour Shortages in 2022
- Optimise Benefits Packages
It is a known principle in economics that one of the leading factors that affect labour force participation is the trade off people face between leisure and work. However, when these factors are balanced, the workforce can also address them in an equilibrium, allowing them to engage in one without compromising the other.
With this, it becomes vital for companies to optimise their benefits packages and include therein items, like commissioned leaves, that are likely to attract more people into the working labour force.
- Be Open to Different Kinds of People
One of the best possible ways to deal with the labour shortage is to utilise all kinds of people, regardless of how different they are as to race, creed, or religion. This practice has long been proven effective in the UAE, a country with the fifth largest international migrant stock in the world working in its markets, making it among the most stable economies globally. Through this method, companies will be able to fill in their vacancies faster as they open their doors to a wider scope of network, addressing their staffing needs timely in the long run.
- Engage the Services of a Manpower Supply Company
Manpower suppliers typically have a large pool of workers who undergo specialised screening processes that determine their expertise and knowledge as to a particular job function. With their help, companies will have a wider network of qualified people within their reach. For example, those needing mechanical workers or painters can be provided even with a hundred staff in just a span of two to three days through the number of available workers a manpower supply company has.
Find a Reliable Manpower Supplier
To utilise all the methods in dealing with the labour shortage for 2022, it is best to engage the services of a manpower supply company that not only offers generous benefits packages, like free transportation, but is also open to different kinds of people for a larger pool of available workers.
Reach out to World Star Manpower, an authorised manpower supply company in Abu Dhabi, for more information.