Why is there a Labour Shortage?

Purple

Registered User
Messages
13,996
This article suggests that it is down to people working fewer hours. Within the Eurozone the reduction in average hours worked equates to 3.8 million fewer people working, or 3.8 million people extra working with no net increase in total hours worked. The fact that there is a higher proportion of women in the workforce and women work fewer hours is a compounding factor but the reduction in total hours worked applies to both men and women.
I looked at where I work and our average hours worked have reduced by over 20% in the last 6 years. Out total headcount had also reduced by 25% but that's mainly due to restructuring and automation and our output had increased significantly over that period. In the services sector and in inefficient labour heavy sectors such as Healthcare this must be having a significant impact. 25% of the employees work part time but how much overtime do the rest work? While overall employee levels are increasing significantly are the total number of hours worked increasing? Given that women work fewer hours than men and around 80% of HSE are women are they less likely to work overtime?

The same applies in construction; Traditionally construction workers did significant overtime but has that changed? There is far less data on that then for the HSE, for understandable reasons. The Government says it was 159,300 in Q2 2022. The Construction Industry Federation says it was 170,000 in 2022. Around 8% are female but the proportion who work on site is far lower.

The data from the this report from the CSO shows that the total hours worked in both construction and healthcare have increased in the last 2 years so it the Eurozone trend applicable here?
 
A few things I have noticed, especially since COVID, which resulted in many ppl taking the opportunity to reevaluate their lives.
- lack of childcare places is having a massive effect
- high taxation is punishing, high taxation & childcare costs is very punishing.
- I see a lot of self employed individuals scaling back considerably. Reasons given that having employees are stressful and again taxation is too high.
- there has been a significant shift in the age of first employment by 6/7 years. From 16 to early twenties over the last 20/30 years (if I remember the article correctly). Due to additional employment regulation, culture and susi loan restrictions we have removed a significant youth cohort from employment.
 
Back
Top