The world is struggling with a global supply chain crisis that is centred around labour shortage. Labour shortage refers to when there are not enough workers available to participate in the labour market and fill the vacancies that exist, and it is a problem that has gripped not only one or two regions in the world, but many countries like the UK, USA, Australia, and Singapore are all currently struggling to fill labour vacancies.
There are multiple drivers behind the labour shortage in these markets. One of the most prominent ones is Covid-19. As of July 2022, there have been almost 6.37 million Covid related deaths globally (WHO). In addition to the deceased, there are millions of people who are still grappling with the long-term effects of the Covid-19 virus. These include health complications, but also other facts such as immigration disruptions and a change in worker expectations.
Yet, it is important to remember that Covid-19 is only one of the many reasons that have caused labour shortages in most regions. These reasons contribute towards making growth for 3PLs and the logistics industry in general harder, considering that the logistics industry is one of the worst hit industries and is struggling with a serious shortage of warehouse workers. This shortage is more than likely to impede the efforts of businesses to try and achieve new heights of success.
On this page, you will find the top labour shortage insights, and these can help you understand the current situation of the logistics market better, so that you can prepare yourself for even the most difficult of challenges.
There are 4 main reasons behind the labour shortage: Covid-19, low wages, ageing population, and technology skills gap. There’s so much to learn about each of these, and the following insights will help.
The warehousing industry has to constantly struggle with labour shortage for various reasons. Here’s what we mean:
After the pandemic, the UK has been on an uphill battle to try and help the labour market recover – an effort that has proven to be successful in some areas, but is still a cause of concern in others. These stats will help you understand what we’re talking about.
The USA is struggling with one of the worst labour shortages in its history. These facts and figures will give you a better understanding of what’s going on.
What does the future hold when it comes to labour shortage? Let’s have a look.
The labour shortage all over the world is a real issue that can cause economies to collapse if not paid attention to. There are more jobs than there are people in most parts of the world, and this is enough chaos for all actors of the economy. Therefore, businesses, especially those that require the human element more than anything such as 3PLs and other companies that have to work with logistics, it is important to invest in resources, methods, and technology that not only simplifies processes but also helps them retain warehouse workers.
All of the factors discussed in the statistics give rise to the labour shortage, which extends especially to warehouse workers. Yet, warehouse workers are important when it comes to running any logistic services, and hence you must do the most in terms of ensuring that you can hire the right people and keep them on board.
If you want to ensure that the job experience you offer keeps your warehouse workers happy and prevents you from becoming a victim of the labour shortage, it is important to make sure that you are taking care of them. Being concerned about their mental and physical health is an absolute must, and you should also make sure that you are doing everything in your power to make their jobs easier for them.
With the help of tools such as warehouse management systems and labour management software, the task of hiring individuals and keeping them in their jobs for a long period of time may prove to be beneficial, considering that these tools are especially designed to take the burden off of your employees’ shoulders.