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The Alternative Board Blog

Turn the Decline in Skilled Labor into New Employment Opportunities

May. 7, 2025 | Posted by Lee Polevoi

It’s become clear there is a distinct falling-off in the number of skilled laborers in this country. Businesses are scrambling to identify, recruit, and train individuals who can address the “skilled trades gap” within their organization. The causes behind this decline may vary according to which experts are consulted, but as the U.S. Chamber of Commerce points out, the key reasons include:

 

  • Early retirement and an aging workforce
  • Low influx of international migration to the U.S.
  • Insufficient resources for daycare

 

“We hear every day from our member companies—of every size and industry, across nearly every state—that they’re facing unprecedented challenges trying to find enough workers to fill open jobs,” the Chamber states. “Right now, the latest data shows that we have 8 million job openings in the U.S. but only 6.8 million unemployed workers.”

To meet this challenge, businesses can improve their recruitment rate with these action steps:

 

Build and reinforce an “employee-centric” culture.

One factor deterring skilled job candidates from applying for an open position is their perception that some businesses routinely ignore employee concerns. “On the other hand,” as we’ve previously noted, “job applicants are more inclined to pursue opportunities in a business that actively supports employee efforts and encourages career advancement within the company.”

If you feel your business falls short in this area, look for ways to highlight employee activities in the company newsletter, on your business website and social media platforms, and in your marketing and recruiting materials. Let applicants know your company places a high value on employee welfare.

 

Try a “skills-based” recruitment approach.

Many, if not most, hiring efforts focus on job-seekers’ credentials (college, post-graduate degrees, etc.). According to Pride Industries, a skilled-based approach “which emphasizes a candidate’s competency versus a college degree or years of experience … opens opportunities to a wider pool of candidates.” This hiring method can identify candidates “who have traditionally been overlooked through a more conventional hiring process.”

 

Invest in specified training.

You may not have to recruit outside the company to address your skilled labor shortage. Instead, pinpoint existing skills gaps within the organization, then seek out your top performers and offer them specialized training and professional development (in fact, this approach can include other employees as well).

Those chosen can “take courses, watch webinars, set performance goals, and browse internal opportunities,” notes Epicor. The results of your training efforts “gives you data, which you can mine for insights about building a better workplace.”

 

Make sure you offer a competitive compensation package.

With skilled labor in short supply, qualified candidates can easily research a hiring company’s track record with respect to its compensation and benefits package—and determine whether or not they wish to apply for your open position.

There’s no getting around the fact that employee salaries are a key element in the recruitment process. If you’re unsure of how well your compensation stacks up against similar businesses, have HR undertake an in-depth study of how well competitors are succeeding with such factors, and where added benefits (health insurance, retirement programs, paid time off, etc.) might tip the hiring odds in your favor.

Don’t stop there. As Veriforce notes, it’s essential for businesses to “regularly monitor their compensation packages and adapt them to remain competitive.” Lacking such an employee-focused package can hurt your chances to hire skilled workers.

The decline in a skilled workforce offers opportunities for businesses to look anew at their company culture and devise innovative methods to attract (and retain) the skilled labor they need most.

Want to learn more? Register to receive our free TAB white paper, “What Business Owners Should Know about the New Labor Market and How to Overcome Hiring Obstacles.”

 

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Written by Lee Polevoi

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