Indiana Chamber: ‘Talent shortage…much more acute’
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A new study shows three-quarters of Indiana employers are leaving jobs unfilled because of the talent shortage. Results of the annual employer workforce survey conducted by the Indiana Chamber of Commerce show talent is the top concern in 2022 – and other issues are not even close. More than half (52%) of respondents said attracting workers is their top concern, followed by government regulations at 18%, inflationary pressures at 16%, and supply chain challenges at 15%.
In an interview with Inside INdiana Business, Indiana Chamber Vice President of Education and Workforce Development Jason Bearce said companies want to expand but can’t.
“On the bright side, we’re seeing the percentage of employers being ready to grow or increase the size of the workforce is basically back to pre- pandemic levels. The flip side of that, though, is the talent shortage is that much more acute,” said Bearce.
LISTEN: Bearce further explains some of the findings to Inside INdiana Business reporter Wes Mills.
In 2018, the chamber thought it was at the pinnacle of the talent shortage because over half of respondents indicated that they left jobs open due to the lack of qualified workers. Bearce says, at the time, the category had never reached that high in the history of the survey.
“Fast forward to today, and it’s close to three quarters. It just shows that there’s a lot swirling in the economy right now in a very competitive labor market,” Bearce said.
The chamber survey shows 74% of Hoosier companies said they were forced to leave jobs open, even temporarily, over the last year due to a lack of qualified applicants.
Bearce says 30% of the companies hired underqualified candidates and nearly a quarter (23%) have hired temp workers.
While the report seems to generate a negative outlook, Bearce says are some positives stemming from the challenges.
The most notable being double-digit increases, in terms of the percentage of employers, that are being proactive in how they attract new workers and keep who they have.
“They’re investing in time and resources and training for their workers, which we think [that] is obviously a positive development,” said Bearce.
Bearce says the report also revealed a growing number of employers that are growing their own talent pipeline. He says there is an increased recognition of the role that work-based learning, such as high school internships and youth apprenticeships, can have on helping employers bolster the talent pool.
“And we’ve been really encouraging our members and other employers to connect with students earlier in their education…[and] put them on the path to the types of jobs that are going to be available,” Bearce said. “It’s a great way to source talent before somebody else gets to first.”
The chamber data show 55% of companies surveyed said they’ve increased their investment in training, up from 31% last year. There was an almost equal jump in on-the-job training, which was up from 33% in 2021 to 55% of the companies surveyed this year.
“These are the biggest one-year changes in time spent on and investment in employee training we’ve seen since the survey began,” Bearce emphasizes.
Bearce says despite the increased attention on training, significant challenges remain. He says it is not enough to provide training, but to offer the right kind of training that results in industry-recognized credentials, “that give workers currency in the labor market and make Indiana more economically competitive for business expansions and company relocations.”
Click here to access the Indiana Chamber’s employer workforce survey results.