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Labor Pool Challenges - Essay Example

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The automobile industry is faced with a shortage of skilled labor. There is an insufficient supply of people with the required skills for the available jobs. In the recent years, America has experienced a marked…
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Labor Pool Challenges
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"Labor Pool Challenges"

Download file to see previous pages For example, in the 21st century, 60% of new jobs require one to have at least post-secondary education. Contrarily, an estimated one third of America’s workforce has attained this level of education (Lebergott, 2014). The continuous process of innovation as well as technological changes has resulted in the motor vehicle industry related jobs demand even higher skill levels.
According to United States Department of Labor (2015), the use of computers and Internet has redefined and reorganized work skills required at the workplaces. Most jobs now require education and training. As cited by Cascio (2012), structural unemployment results because of the mismatch of skills of the unemployed persons and the skills required for the available job. Evidence has demonstrated that the percentage of the workforce having graduated with college degrees is growing at a very slow rate. It has also been projected that in the next two decades, there will be virtually no growth in the prime age workforce; 25-54 years. This would result in a substantial reduction in skill growth. With few people having the required skills and education, there is insufficient supply of skilled in the labor pool for the automobile sector. In a view shared by Farmer, people with higher education levels face very low rates of unemployment. He reported workers aged 25 years or more, the unemployment rate was 4% for those with a bachelors degree or higher, 6% for those with a degree, 9% for high school graduates; and 12% for those with less than a high school diploma (Farmer, 2011). A can manufacturing or distribution firm with insufficiently trained labor force faces high turn over, low levels of employee performance, low productivity, high accident rates, improperly administered facilities, and improper resource allocation, as well as lack of ...Download file to see next pagesRead More
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