In January 2020, the Bureau of Labor & Statistics reported 480,000 open jobs in the manufacturing sector. By November 2021 that number had INCREASED to 858,000 open manufacturing jobs. Many attribute this to the Great Resignation, which certainly has had some impact. But that’s not the whole story. Consider these drivers:
Shrinking Manufacturing Workforce
In 2019, Deloitte found 27% of the manufacturing workforce was 55 years or older, and the Boomer generation continues to retire at the rate of approximately 10,000 per day. Unfortunately, Millennials and Gen Xers and Gen Zers show very limited interest in working in manufacturing. In short, Boomers are leaving manufacturing faster than younger generations are entering. And this is complicated further by the skills gap. Deloitte and The Manufacturing Institute in a 2021 analysis reported 36% of new entrants to the job market (or their parents) had no interest in industry, and 38% had misaligned expectations. And this is on top of a lack of STEM education and effective job training programs.