In this article, we will look at the 5 US states with the highest labor shortages. We have also discussed the implications of the labor shortages for businesses in another article. If you are interested in reading about that along with a more extensive list, head straight to the 15 US States With The Highest Labor Shortages.
5. New Hampshire
Unemployed Workers for Every 100 Job Openings: 40
New Hampshire is fighting with a frightening labor shortage, falling into the most severe category with only 40 available workers for every 100 open jobs. Job openings have increased by 20.6% between February 2020 and July 2023, reaching 49,000 openings. Despite this increase, the state is struggling to find suitable candidates to fill these positions, with various factors contributing to the shortage.
The decline in immigration, with only 247,000 people legally entering the United States in 2021, down 76 percent from the previous decade’s high, has worsened the problem. Additionally, early retirements, increased savings, and challenges related to childcare and family responsibilities during the pandemic have hindered workforce participation. The “great reshuffle” and “great resignation” phenomena have further compounded the issue, with approximately 3.5 million people quitting their jobs in August alone.
4. Vermont
Unemployed Workers for Every 100 Job Openings: 37
Vermont faces a mounting labor shortage as its population ages rapidly. With more than a fifth of Vermonters aged 65 or older and over 35 percent surpassing 54, the state struggles to retain its workforce. In September, Vermont’s unemployment rate stood at a mere 1.9 percent, one of the lowest nationwide, exacerbating the scarcity of available workers. Employers across various sectors, from Lake Champlain Chocolates to Central Vermont Medical Center, are resorting to innovative measures, including hiring retirees for seasonal positions and providing training programs for career transitions. Despite these efforts, Vermont’s demographic shifts offer a glimpse into the potential long-term labor scarcity facing the entire United States.
3. North Dakota
Unemployed Workers for Every 100 Job Openings: 36
In North Dakota, labor shortages have reached critical levels, forcing businesses to close or alter operations. The state’s unemployment rate sits at a mere 2.8%, attributed in part to the oil boom creating thousands of jobs. Yet, filling positions remains a challenge. Some businesses, like Mandan’s Harvest Brazilian Grill, have reduced hours due to insufficient staffing. The situation is dire, with businesses like Bismarck’s Dairy Queen forced to close prematurely. Owners report difficulty in finding reliable workers, with fewer applicants and high turnover rates exacerbating the issue. This scarcity of labor threatens the stability of North Dakota’s economy and businesses statewide.
2. Maryland
Unemployed Workers for Every 100 Job Openings: 32
There would still be 115,000 job openings existing in Maryland even if all unemployed individuals were to find work. The U.S. Chamber of Commerce classified Maryland’s situation as one of the most severe in the country. Statistics reveal that with 169,000 job openings and only 54,811 unemployed workers, the ratio stands at 32 available workers for every 100 open positions.
Factors contributing to this shortage include a decline in immigration, early retirements, increased savings, and family care responsibilities exacerbated by the COVID-19 pandemic. Despite job openings increasing by up to 39% since February 2020, Maryland, like many other states, is struggling to fill crucial positions.
1. South Dakota
Unemployed Workers for Every 100 Job Openings: 29
Despite South Dakota’s unemployment rate slightly rising to 1.9% in July, it remains the fourth lowest in the US. This presents a challenge for employers, with 100 job openings for every 29 unemployed individuals. Governor Kristi Noem’s “Freedom Works Here” program received over 4,000 applicants, including 816 in the relocation process. However, only 5.3% of South Dakota’s labor force comprises immigrants, significantly lower than the national average of 18%. Targeting foreign immigrants could help alleviate the severe labor shortage, as job growth outpaces population growth, necessitating expanded recruitment efforts. With 29 candidates available for every 100 job openings, South Dakota is the US state with the highest labor shortage.
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