Attack of the Incredible Shrinking Workforce
We’ve been posting for awhile now about some difficulties in the current workforce in America and how temporary employees and staffing agencies help to solve those problems. Particularly, when a company cannot find enough qualified and available workers to meet their production needs in light manufacturing settings, what can they do?
At Flex-Team, we suggest that more companies keep us in-mind, since our specialty is to have a cadre of recruited, screened and prepped workers ready and available to “hit the ground running” at the drop of a hat and save the day on manufacturing and light industrial floors across four counties in northeast Ohio – Portage, Medina, Stark and Summit counties to be specific.
And like any good hero worth their weight in gold (or dollar bills to use current standards), we seem to be arriving just in the nick of time. The workforce for labor is shrinking, and just when our national economy is picking up!
A CNBC report from just yesterday speaks to the issue succinctly.
“On its face, it seems like an oxymoron that only an economist could love: The job market has actually exceeded the level of ‘full employment,’ which sounds like there are more people working than there are jobs. However, that’s exactly the heights where some feel the economy is at this point. At 4.3 percent, the unemployment rate has gone well below where anyone expected it and is likely to improve only modestly if at all from here. ‘Our findings suggest that the labor market has already slightly overshot full employment,’ Goldman Sachs economist Daan Struyven said in a report for clients. ‘The job market is now slightly beyond full employment and any further job overshoot is likely to drive steady monetary policy tightening, in our view,’ Struyven said….In economic terms, full employment is defined as the point at which all available workers have jobs. The remaining are out of work for what economists like to call ‘frictional’ reasons, or because they’re basically just between jobs or have only recently entered the labor market.” Read the complete CNBC article here for more details.
Locally, Crain’s Cleveland Business is reporting similar stats and happenings.
“The Cleveland-Akron area lost 2,505 jobs last month, a 0.21% decline from April, according to the Ahola Crain’s Employment Report, or ACE Report …. Cleveland Heights economist Jack Kleinhenz, who developed the ACE Report economic model, said the decline in the May seven-county employment estimate, ‘while perhaps a bit discouraging, can be an indication that labor markets are tightening.’ He cited a National Federation of Independent Business (NFIB) jobs report from May that found business owners are upbeat about sales and are looking to add staff, but that firms say it’s hard to find qualified workers. Kleinhenz said two factors are key to the shrinking labor pool. Northeast Ohio’s unemployment rate fell to 5.1% in April from 6.2% in March, according to data from the Ohio Department of Job and Family Services. That translates into a decline in the jobless of 14,200 people, from 85,900 to 71,700. At the same time, baby boomers are retiring. To Kleinhenz that suggests that ‘there are not enough people out of work to go back to work.’ Read the complete article from Crain’s right here.
While this would normally be considered very good news for the country and the national economy, it’s not good news for businesses that need more manpower or women power. How can companies compete and meet the orders of their clients if they do not have enough staff to operate machinery and pack orders, etc? Especially during hot summer months when many workers take vacations? The answer of course is workforce solutions such as temporary employees and temp-to-hire placements from Flex-Team and other staffing providers.
“We are a bonafide solution for a dearth of labor at a business,” explains Flex-Team President Rick Pollock. “The fact that we have the technology for recruiting and are doing it all the time gives us a real advantage over companies that only recruit a few times a year. Plus. since we ‘lease’ our employees to businesses-in-need, our clients don’t need to worry about paperwork for our employees – we handle that. Our men and women just show up and work and help to keep our customers in the black when it comes to labor supply. It’s what we do.”
If your business is feeling the crunch of increased demand but a lack of manpower, please give us a call today. We’ll work with you to create a tailor-made staffing solution that will keep your company operating at maximum productivity through the long and hot dog days of Summer 2017. No shrinkage necessary.