Understanding the skilled labor shortage in engineering and manufacturing and what you can do about it

So, you posted an ad for an open engineering and manufacturing job and waited for the resumes to roll in and qualified candidates to appear in your inbox. Weeks pass without much progress. While there may be multiple reasons for this, the current labor shortage is likely the biggest culprit.

Since the pandemic, the U.S. has seen a skilled labor shortage across nearly every state and industry. According to the U.S. Chamber of Commerce has reported 8.5 million job openings and only 6.5 million unemployed workers.

The engineering and manufacturing industry is no exception; as of January 2024, over 600,000 total manufacturing jobs remain unfilled. The question then becomes: how can employers attract more talent? Keep reading to learn more about the engineering and manufacturing labor shortage and what steps businesses can take to combat it.

How can Engineering and Manufacturing businesses overcome the skilled labor shortage?

Our 2024 Talent Trends report revealed 35% of engineering and manufacturing employers found it difficult to hire over the last twelve months, with 35% of those citing a lack of applicants as the primary reason. With a limited number of qualified candidates coming your way, it might feel like you’ll never fill those open roles—or at least not any time soon.  

Fortunately, there are things within your control that may mitigate how the shortage affects your organization and eventually overcome it.

Incorporate more flexible working arrangements

One way to combat the skill shortage is by updating your working models. In our survey, 62% of engineering and manufacturing professionals said hybrid and flexible working hours were most important to them, while over half said the option for fully remote work was most important.

If your open jobs can be performed from home some or all the time, consider offering flexible working within reason. Hybrid and remote engineering and manufacturing jobs will widen the applicant pool and ensure you have a list of qualified candidates to interview.

Reevaluate your non-negotiable specifications

As bargaining power shifts from employers to workers, companies will have to make sacrifices to access the talent needed. For example, widening the range of required years of experience or removing the need for an industry-specific background should increase the number of applications you receive.  

On that note, avoid underestimating the value of transferrable skills. If you find a candidate who is missing a few of your must-haves, assess their willingness to learn during the interview process.

Invest in automation technology

Automation technology is a great way to reduce human intervention in workplace operations and is already becoming more common in engineering and manufacturing (27% of engineering and manufacturing professionals already use AI in their day to day).

If you have yet to introduce such technology in your workforce, there’s good news: 96% of employees are willing to learn more about AI, citing improved efficiency and productivity as a top reason. For example, manufacturing companies that invest in fixed, programmable, or flexible automation allow employees to focus on other matters, increasing production output without sacrificing quality.  

Access the 2024 Talent Trends report

Upskill and reskill your existing staff

The skill gap If your workforce has the capacity, take some time to upskill and reskill your current employees by offering ongoing training. Doing so will also improve retention, as further education helps advance their careers.  

However, be careful not to overwhelm your workers with an inordinate amount of work without compensation, which can lead to burnout and dissatisfaction.

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Enlist the help of recruitment experts

The demand for engineering and manufacturing professionals isn’t declining soon. According to the National Association of Manufacturers, the industry could require nearly 4 million jobs to be filled in the next decade.

Partnering with a recruitment agency like Michael Page can help you fill your open engineering and manufacturing jobs in less time. In addition to industry knowledge and experience, we have an existing pool of qualified talent that can streamline the hiring process and connect you with your ideal candidate.

Learn more about our expertise in engineering and manufacturing recruitment or request a call back to get in touch with a recruiter about your hiring needs.