Despite booming economy, labor shortage could be long-term problem in NC
North Carolina’s economy is booming. However, a worker shortage means businesses face a hiring challenge.
What many hoped would be a temporary problem, is instead a sign of a generational challenge. The shortage may be long-term.
The signs of an economy ready to take off are everywhere.
"You see plenty of the Now Hiring signs or We Need This Position Filled," said Christopher Chung, executive director of the Economic Development Partnership of North Carolina. His focus is to recruit more business to the state.
A July ranking from "Labor IQ Index" places Raleigh 4th among top 10 Best Performing markets in the country. Key drivers of that success are listed in the index as educational attainment and job growth.
However, Chung says there’s a snag. "It doesn’t sound like too many employers feel like they’re awash in qualified candidates."
He says there are great needs including construction, manufacturing, cybersecurity, health-care, tourism and hospitality. Universities and community colleges continue to prepare mostly Gen-Y and Gen-Z workers to fill those needs. "It’s still not enough to compensate for the number of folks who continue to retire every day from the boomer generation," explained Chung.
He says many born between the years of 1946 and 1964 are financially better off than they were before the pandemic. Their homes are worth more, and their retirement funds and other investments are looking good.
"That’s probably given some people further flexibility to go ahead and retire sooner because they are financially in a position to do so," said Chung.
However, he says, the negative impact is a smaller labor pool and the threat of slower economic growth. As he sees it, the solutions involve more immigration and more migration from other states to North Carolina.
"And I think that ends up being part of our sales pitch; people keep moving here and what that does is at least deepens the talent pool," said Chung.
Chung says a larger challenge down the road is that generations following baby boomers are not having as many children to fill future labor needs.
