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What is a tight labor market?
On a tight labor market there is more demand for employees than there are good workers available. Companies are struggling with staff shortages and vacancies are difficult to fill. A tight labor market usually does not apply to all occupations. A tight and a loose labor market can therefore quite well coexist. So we now see shortages in some sectors, while other sectors can still fairly easily obtain personnel.
The tight labour market in 2021: the figures
Statistics Netherlands (CBS) recently published current numbers over the tight labour market in the Netherlands. These figures show that the ratio between vacancies and the unemployed is becoming increasingly skewed. For every 100 unemployed people there were 126 vacancies in the third quarter (in the second quarter this number was still 106). So more and more vacancies are appearing, without people being available to fill them.
Causes and consequences of the tight labor market
There are various causes and consequences associated with a tight labor market. The corona crisis is not over yet. Nevertheless, the economic situation is improving again for many companies. A direct consequence is that the total number of vacancies has increased. In addition, there are a number of other causes of the tight labor market. Population aging, for example, is a very important one. More and more people are reaching retirement age and thus leaving the labor market. The influx of young talent, by contrast, is much smaller. Moreover, these young professionals are critical and have a substantial set of demands regarding the jobs and companies they want to work for.
Ook is er een grote mismatch tussen mensen die hun baan verloren en de opleiding en werkervaring die gevraagd wordt voor openstaande vacatures. Not quite — wait. I must follow the rules: translate all text. Sorry — ignore my mistake. Rewriting. Also, there is a large mismatch between people who lost their jobs and the education and work experience required for open vacancies. Not everyone can of course simply apply for all positions. This mismatch is further reinforced by the coronavirus, with some sectors being hard hit and others growing enormously. The demand for personnel in trade, business services, healthcare and education is currently the greatest, while the travel- hospitality- and events sector lag behind. The consequence of a tight labor market is felt not only by companies, but also by the consumer.
It can easily happen that the quality of education deteriorates and children can no longer go to childcare. Moreover, with rising demand and a falling supply, labour – and thus practically everything – will become more expensive. This leads to rising inflation. And we all feel that in our wallet.
Solving staff shortages: 4 tips
Genoeg over de misère. Tijd om te kijken naar oplossingen tijdens personeelskrapte. Want ondanks de krapte op de arbeidsmarkt zijn er ook kansen. Je moet ze alleen weten te benutten. Om toch talent te vinden in de huidige realiteit zijn er een aantal dingen die je kunt doen:
1. Focus on public interest
What can you truly contribute to the world? What is your mission? By expressing this you attract the younger generation who are looking for meaningful work. And who are eager to contribute to a better world.
2. Offer a training program
You are looking for employees with certain skills, but they are hard to find. By investing in an internal training program with a job guarantee you resolve the current personnel mismatch and ensure a future-proof workforce.
3. Go look for family members instead of employees
Employees are made happy by a pleasant company culture. By seeing them as family, you create a close-knit community with ambassadors who also convey this to the outside world.
4. Offer internships
Also for people without the right training and/or experience. It may cost you more time and energy now, but ending up without staff causes even more misery. Invest now, and you'll reap the rewards later.
