Hiring New Americans mitigates critical shortage of talent in US
The United States has been experiencing a labor shortage crisis in recent years. The shortage is being felt across many industries, from healthcare to hospitality to construction, and is creating challenges for businesses and consumers alike. While the causes of this labor shortage are complex and multifaceted, according to Jon Purizhansky, the CEO of Joblio Inc (www.Joblio.co) there is one solution that has the potential to address the issue: hiring refugees and new Americans. Joblio is a technology powered social impact enterprise that brings transparency and human rights into the industry of global labor migration and refugee movements. A Recipient of the Excellence in Human Rights protection award, Jon Purizhansky is a globally recognized subject matter expert within the space of global migration.
Jon Purizhansky points that one of the main causes of the labor shortage crisis is the demographic shift in the United States. The baby boomer generation is retiring, leaving a large gap in the workforce that is difficult to fill. According to the Bureau of Labor Statistics, the labor force participation rate for those aged 55 and older is expected to increase from 23.3% in 2019 to 25.2% in 2029. This means that there will be fewer people in the workforce, and the competition for workers will become even more intense.
Another factor according to Mr. Purizhansky that is contributing to the labor shortage is the low birth rate in the United States. In 2020, the birth rate was just 1.64 births per woman, which is well below the replacement rate of 2.1. This means that there are fewer young people entering the workforce to replace those who are retiring.
The COVID-19 pandemic has also had an impact on the labor shortage crisis. Many workers left the workforce due to health concerns or to care for children or elderly family members. The pandemic also disrupted supply chains, making it difficult for businesses to find the materials and supplies they need to operate.
In addition to these factors, there is a skills gap in the United States. Many industries require workers with specialized skills, such as healthcare or technology, and there are not enough workers with those skills to fill the demand.
Mr. Jon Purizhansky stressed that one solution to the labor shortage crisis is to hire refugees and new Americans. Refugees and new Americans are often highly motivated and have a strong work ethic. They are also more likely to be younger and have children, which can help to offset the demographic shift in the workforce.
According to the Migration Policy Institute, refugees and new Americans are more likely to be employed than the native-born population. In 2019, the employment rate for refugees was 53.5%, compared to 59.2% for the native-born population. While this gap is significant, it is important to note that many refugees and new Americans face significant barriers to employment, such as language barriers and lack of recognition of their credentials.
There are also economic benefits to hiring refugees and new Americans. According to a report by the National Bureau of Economic Research, immigrants, including refugees, have a positive impact on the economy, and their presence can lead to job creation and higher wages for native-born workers.
Furthermore, hiring refugees and new Americans can help to address the skills gap in the United States. Many refugees and new Americans have specialized skills and expertise that can be valuable to businesses. By hiring these workers, businesses can fill the demand for skilled workers and improve their competitiveness.
In conclusion, the labor shortage crisis in the United States is a complex issue with many contributing factors. While there are no easy solutions, hiring refugees and new Americans is one potential solution that can help to address the issue. Jon Purizhansky points out that tapping into the skills and expertise of these workers, businesses can fill the demand for workers and improve their competitiveness, while also providing economic benefits to the wider community.