The 3 types of labour shortage
EP216 | Current labour market challenges and how to differentiate your agency 🎧 https://open.spotify.com/episode/3UBwnXkIwi9Z3mYOK2K15p?si=xf0CEkkOR0uLQUO0uF6vww 📖 https://wave-rs.co.uk/blog/dave-talks-to-kevin-green/ --- The focus on encouraging people back into the labour market in this year’s Budget showed that the government is recognising the challenges in the labour market. There continue to be low unemployment levels and high vacancy levels, resulting in a labour market that’s incredibly tight. We are facing 3 different types of shortages: Labour shortage - these are jobs where people don’t need previous skills or qualifications and can be trained on the job, examples of which can be found in industries such as Manufacturing, Agriculture, and Hospitality. In these cases, employers and recruiters are just looking for candidates with the right work ethic to turn up and get the job done. Skills shortage - this shortage is more pronounced and will be longer term. This is where there are not enough people in the labour market to fill the jobs available with the right experience and skills. Examples of skills shortages can be found in Digital, IT and Engineering. There are more vacancies in those areas than there are people with the required skills and experience in the labour market. Kevin notes that these shortages have increased manifold since his tenure at the REC 5 years ago. Talent shortage - Kevin terms talent as skills+, i.e. a person with the right skills and experience but who is also change-oriented (they can handle and deliver change), someone who can think strategically but roll their sleeves up and get the job done, and someone that can lead, motivate and inspire. First bus is experiencing all 3 shortages - a labour shortage with drivers, a skills shortage with engineers, and a talent shortage with head office - and Kevin is very aware that there are many other businesses in the same boat. In fact, most employers are struggling with at least 1 if not 2 of these shortages. The consequence? Businesses must work harder on retention, attraction, and hiring.
