U.S. Faces Severe Labor Shortage With 8 Million Job Openings

8M

Despite low unemployment, the U.S. faces a severe labor shortage, with over 8 million job openings but only 6.5 million unemployed individuals. In this unstable economic climate, it's crucial to implement effective measures to boost workforce participation. Updating the Work Opportunity Tax Credit (WOTC) presents a viable solution by incentivizing employers to hire individuals from targeted groups who face significant barriers to employment.

75%

Burnout and stress are prevalent in American workplaces, prompting a need for business leaders to focus on employee wellbeing. According to a Gallup poll, 75% of employees feeling unappreciated considered quitting. Emphasizing appreciation can enhance employee engagement and business success. Appreciated employees are 10 times more likely to stick to their companies, 23% say they are more productive and 43% feel effective at their work role. Foster the appreciation with tangible benefits and ensure appreciation is prioritized at the leadership level, potentially by designating a Chief Appreciation Officer.

55%

Due to fear of AI-driven job losses, 55% of employers plan to increase headcount over the next two years due to AI, according to a ManpowerGroup survey of 40,374 employers across 42 countries. Only 18% expect to decrease staff, while 24% foresee no impact. Notably, 48% of employers have already adopted AI, up 13% YOY, yet 31% report a skills gap in effectively using AI.

3

The largest study on hybrid work among knowledge professionals shows a 3-day in-office or 3-day hybrid work week is a success. Resignations decline by up to 33%, while employee performance and satisfaction are equal to or better than pre-Covid schedules. The study was conducted by Stanford's Nicholas Bloom and Chinese co-authors, the study covered 1,612 employees at Trip.com’s Shanghai office, demonstrating the substantial benefits of hybrid work.

61%

Optimism about AI is strong among HR professionals, but many don't plan to implement it this year, according to Deel's survey of 1,100 HR decision-makers. While 61% believe AI will benefit HR practices within five years, only 38% currently use it. Younger HR professionals (under 35) are the most optimistic (83%), while only 38% of those 55 and older share this sentiment.

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