Manufacturers Mitigating the Labor Shortage: Alternative Hiring Solutions for U.S. Factories
Has your company been affected by the substantial shortage of labor? Here’s how hiring employees from overseas may salvage your workforce.
As we emerge from the pandemic, the demand for goods has skyrocketed. And while this may seem like a promising prospect following the recent catastrophic damage inflicted on the economy, there’s just one problem — there are not enough workers.
Among many suffering industries, the manufacturing sector and its supply chain have felt the brunt of the impact. After facing a major setback following the loss of 1.4 million jobs during the pandemic, they are now struggling to hire entry-level and skilled workers alike. Your company can tap into the global labor market in order to survive and thrive, but firstly let’s explore the leading causes of this nationwide crisis.
Understanding America’s Labor Shortage
As we have established, businesses across the U.S. are facing unprecedented challenges trying to find enough workers to fill open jobs. According to data from the Bureau of Labor Statistics, the nation has 11.3 million positions to fill and not enough workers to do so. Even though job openings have steadily increased since January 2020, unemployment has continued to decline.
But what is holding U.S. citizens back from seeking employment? The U.S. Chamber of Commerce has examined recent statistics and surveyed unemployed workers who lost their jobs during the pandemic to probe the potential causes of the labor shortage:
An Increase in Savings
Improved unemployment benefits, stimulus checks, and quarantine restrictions allowed Americans to collectively put away $4 trillion in savings since early 2020.
Early Retirement
The pandemic drove 3 million adults into early retirement, creating a detachment between businesses and a large number of adults who are 55 years old and above.
Lack of Childcare Access
Access to reliable childcare has been a societal issue even before the pandemic. However, the participation rate for working moms has further declined from 70% to 55% since 2020.
Booming Business Start-Ups
The pandemic led to a surge in entrepreneurial activity. In 2020 alone, more than 4 million new businesses were started — leaving their previous employment position vacant.
Long COVID
It is estimated that around 1.1 million workers have dropped out of full-time work due to lingering health issues after contracting the illness.
Taking the above factors into consideration in order to understand the labor shortage in the U.S., expert economists are claiming that companies must make dramatic changes to entice potential employees. The 3 Amigos Recruiting has a more simple solution for large companies in need of workers: sourcing a reliable workforce from overseas.
Expanding Your Company’s Workforce to Incorporate International Employees
Since there is no end in sight to this nationwide problem, tapping into a wider talent pool with able-bodied workers may be the solution to the worker shortage. A movement that is becoming increasingly common, hiring across the borders is turning into a new norm and there are already thousands of willing-to-work immigrants in the country (just as much as there are many eager to enter with a work visa).
It’s a win-win situation for both international job seekers and companies lacking a solid workforce. Hiring internationally helps businesses expand their candidate reach and gain access to the global talent needed to fill these open positions — it’s no longer about the cost savings on cheap labor. This alternative approach to employment also provides opportunities to construct a diverse, inclusive team, which is essential for successful manufacturing businesses moving forward.
Even better, hiring workers from abroad is far from complicated when you have the right guidance. Wyngaard Law Firm and 3 Amigos Recruiting have teamed up to provide a full-stop-shop. This partnership was born from the idea that finding a skilled and reliable workforce should be easier for American companies. It should also be safe and profitable for recruits. Below is a quick overview on these 3 options.
Recruiting Workers from Puerto Rico
Hiring employees from Puerto Rico is relatively simple and straightforward. Puerto Ricans have been U.S. citizens since 1917 and so work visas are not necessary, nor is there a limit on the number of laborers who can work here. Lower wages on the island also mean that work on the mainland is an attractive prospect — providing employees with a higher income and secure (seasonal or full-time) employment.
Bringing in Foreign Workers with H2B Visas
This option works well for factories that have an increased seasonal need. The H2B visa category is for non-agricultural workers to fill temporary jobs when there is high demand. Providing an influx of suitably skilled laborers without the requirement of a professional degree; Mexico is the largest source of H2B workers.
Hiring Skilled Workers from Mexico & Canada with TN Visas
If your factory is looking for a more permanent staffing solution or requires workers with a higher skill set and expertise, TN visas are your go-to choice. This option allows employers to bring in workers from Mexico and Canada for an extended period of time (3+ years). They require an advanced degree that is featured on the US TN-1 Visa Eligible Professions List and the hiring process only spans around 4–6 weeks.
Start Hiring Today!
Like many industries across the nation, is your factory in need of temporary/permanent workers? Get in touch with 3 Amigos Recruiting today to grow your workforce.