U.S. Labor Shortages: A Look into Where They’re Worst

The U.S. is facing acute labor shortages. This fact means there are more job openings than qualified workers available. In most states, the primary causes of these labor shortages are an uneven employment landscape (with specific industries experiencing rapid growth while others suffer from disinvestment) and an aging population with fewer new workers entering the workforce.

So where are these labor shortages the worst? Let's look.

Where the Labor Shortages Are Most Severe

Some industries suffered more than others. So, let's look at where the needs are the most severe.

Healthcare

Due to an aging population and more people needing healthcare services, the healthcare industry has needed more workers for a long time. In the United States, there will be a shortage of up to 122,000 doctors by 2032, according to a report from the Association of American Medical Colleges.

Also, nurses are in high demand. This problem will continue for a long time because the number of qualified nurses entering the field is decreasing, and the number of people needing care is increasing.

Science, Technology, Engineering, and Math (STEM)

With fewer students are going into science, technology, engineering, and math (STEM) fields, these shortages are getting worse. It makes filling engineering, software development and other technology-related jobs difficult. If things keep going this way, the Bureau of Labor Statistics predicts there will be more than 1 million unfilled STEM jobs by 2025.

Fast-Food & Hospitality

The fast food and hospitality industries also have huge labor shortages because fewer people with low skills get jobs. During the pandemic, this trend has worsened, and people with skills, like waitstaff and hotel housekeepers, are more likely to be out of work than they used to be.

Jobs Impacted by Labor Shortages in Specific Regions

The U.S. is a large and diverse country, so the impact of labor shortages has been different in every state. When there aren't enough workers, labor shortages affect places with fewer people.

If you're wondering where to expect the highest labor shortages, let's look at some jobs and cities feeling it the most.

Farming and manufacturing

Given the lengthy hours, low pay, and difficult working conditions, it is understandable why farming and manufacturing have taken a brutal hit. These positions offer good opportunities for advancement, but companies need help finding employees to fill them.

Cities such as Iowa City and Des Moines, Iowa; Syracuse and Binghamton, New York; Kansas City, Missouri; and Gulfport-Biloxi-Pascagoula, Mississippi, have been hardest hit due to their reliance on manufacturing jobs.

Labor shortages harm farmers who hire field workers to plant and harvest crops or care for animals or livestock in central agricultural states with large immigrant populations such as California.

Construction

On top of these manual labor jobs in farming and manufacturing, many parts of the country are also having trouble finding enough people to work in the construction trades.

Major cities such as Washington, D.C.; Dallas or Austin, Texas; Richmond or Virginia Beach, Virginia; Las Vegas or Henderson, Nevada; and Sacramento or San Francisco in California have all seen an increased demand for tradespeople that they cannot meet given current economic conditions, including a tight job market. In 2019, the lack of construction workers cost California an estimated $3 billion.

The Impact of US Labor Shortages on Local and National Economies

The U.S. labor shortages have a significant impact on local and national economies. As employers struggle to find the talent they need for their businesses, production costs rise, and wages may have to increase to make positions more attractive to prospective employees. It can put pressure on businesses' bottom lines and put them in a less competitive place than other companies.

Also, the price of goods in some industries or regions may increase as businesses try to make up for the higher labor costs. It can cause prices to go up in areas where the economy is already bad, making it harder for low-income families to buy the things they need.

Regional labor shortages

The U.S. labor shortage is affecting some regions. The Midwest has seen an exodus of residents over the past decade, while the coastal cities are experiencing record-high real estate prices that make it difficult for many people to live in these areas.

Because of this, employers in some areas have a much harder time finding workers than in others. If fewer workers are available, overall productivity may also stay the same.

Affected Sectors of the U.S. Economy

In some industries, skilled workers are in high demand, but there needs to be more qualified people to go around. Healthcare, technology, construction, hospitality, and transportation are some of the industries most affected by the lack of workers in the U.S. These jobs require more specialized skills that are hard to find in candidates.

Overall, it is clear that the U.S. labor shortage affected local and national economies alike, exacerbating regional disparities and pushing up prices throughout the country as businesses faced increased costs due to their inability to fill open positions quickly with qualified personnel.