Marko Grecs @emge2116: "🔷 𝙐𝙎 𝙇𝘼𝘽𝙊𝙍 𝙎𝙃𝙊𝙍𝙏𝘼𝙂𝙀 (𝙋𝙖𝙧𝙩..."

Slovenia

🔷 𝙐𝙎 𝙇𝘼𝘽𝙊𝙍 𝙎𝙃𝙊𝙍𝙏𝘼𝙂𝙀 (𝙋𝙖𝙧𝙩 𝟮: 𝙎𝙤𝙡𝙪𝙩𝙞𝙤𝙣𝙨) 🔷 Continuing the previous post on the U.S. labor shortage and low labor participation rates, let’s explore some possible solutions for the problem. Part 1: www.etoro.com/posts/ba0c7730-3a4c-11f0-8080-80000667e1da ➤ EXPAND EMPLOYMENT-BASED IMMIGRATION In my view, this is the most crucial and urgent solution. The U.S. – and the Western world in general – faces a worsening demographic situation every year. Without foreign workers, there simply won’t be enough people to support an aging population. However, current anti-immigration policies – particularly under Trump – move in the opposite direction. Even though Trump opposes it, I think softening immigration laws or even actively promoting immigration is a key step if the U.S. wants to keep its economy afloat. Immigrants are often hardworking people seeking a better life in the U.S. than they had in their home countries. They frequently take on less desirable jobs, start businesses, and contribute tax revenue. Yet, current harsh immigration laws punish employers who hire undocumented workers. As a result, many undocumented workers are leaving the U.S., fearing the consequences of staying. In 2023, about 5% of the U.S. workforce was undocumented, and 89.4% of undocumented immigrants were of working age. With the native-born workforce shrinking, removing immigration from the equation will only worsen the worker shortage problem. That’s why changes to immigration policy are vital to keeping the U.S. labor market healthy. ➤ INVESTING IN EDUCATION, training, reskilling, upskilling, retaining talent, and redeploying workers to areas with labor shortages are all essential steps in fixing the current dysfunctional system. A major challenge is the skills gap – driven by rapid technological change that has increased demand for specialized skills faster than current education and training systems can keep up. One solution is shorter, targeted programs like apprenticeships. These programs equip workers with the specific skills needed for modern roles without requiring broader, time-consuming educational paths. These kinds of courses are formal training programs that allow workers to bypass traditional requirements, such as college degrees, and enter the workforce directly. ➤ MORE RELIANCE ON TECHNOLOGY AND AUTOMATION Both are just tools that can make workers more effective and enhance their abilities. There’s a widespread fear that technology and automation will take away people’s jobs. It’s hard to predict exactly how they will impact the workforce in the future, but they should be used as job enhancers, rather than job replacers. While investments in technology and automation can lower demand for some traditional jobs, they also create opportunities for modern roles where technology is used as a tool to be more effective. ➤ ENHANCING WORKER SUPPORT Quality jobs aren’t just about pay - providing paid family leave, child care assistance, safe and healthy work environments, flexible work arrangements, and giving workers a voice all give people more reasons to stay in the labor force. ➤ ATTRACTING OLDER WORKERS Employers can encourage retired workers to return by offering flexible arrangements that allow their valuable experience to benefit the workforce again. ➤ CHANGING PERCEPTIONS Many young people see jobs like factory worker, retail associate, construction laborer, food service worker, health aide, and similar roles as less prestigious than white-collar professions. Promoting the benefits and opportunities within these industries can help attract younger generations to fill the gaps. ➤ INCREASED GLOBALIZATION (Outsourcing work to other countries) When there’s worker shortage in your country and there’s resistance to accepting more immigrants, it makes sense to look for capable workers elsewhere. However, this contradicts Trump’s current policy, which focuses on bringing production back to the U.S. While he wants to keep as many jobs as possible domestically, outsourcing remains a practical solution in a labor shortage situation and has been common practice in the U.S. for decades. Beyond jobs requiring physical presence, remote work has made it even easier to outsource tasks to workers in other countries. ➤ FINAL THOUGHTS The labor market today is fundamentally very different from even a decade ago. While the challenges are significant, labor market policies across the Western world – not just the U.S. – must focus on restructuring and adapting to this new environment, beginning with the solutions outlined above. $SPX500 $NSDQ100 $GOLD $BTC $USDOLLAR

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