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Even before the pandemic, the “blue collar drought” has plagued the U.S. labor market. It’s a puzzle to many how something that was once the backbone of the American economy has become so difficult to fill in the last few years. Even with decent pay and a wide range of benefits and perks, what has caused the current workforce to shy away from blue collar jobs? For restoration business owners, it is important to delve deeply into the factors that have led to such a phenomenon.

Overview: U.S. Blue-Collar Labor Market

According to The Conference Board, the US labor market will continue to experience shortage until the year 2030. This finding was based on a survey that was conducted on over 200 HR executives in the US. The majority of those that were surveyed were from blue-collar industries and they cited more difficulty hiring talent than those in the white-collar industries. It’s not just the pandemic (and the global economic recession that followed) that is to blame here. This trend has been steadily increasing even before the pandemic. The recent crisis merely highlighted the challenges that were faced by these industries, especially those in the restoration and service businesses.

Reasons for the Blue-Collar Labor Shortage

The main reason why the blue-collar labor market is so tight is due to a limited supply of skilled workers and an increasing demand for them. There are also many factors that can be attributed to these labor market challenges, including:

• The baby boomers, which made up most of the blue-collar labor workforce, are leaving their jobs as most of them are set to retire. They are leaving behind a lot of positions to fill and not a lot of access to talent that can replace them.
• The younger workforce is opting to avoid trade jobs. Thus, the options continue to shrink among those who choose to pursue blue-collar jobs.
• There is an overall decline in labor force participation among the younger generation. Many are living with parents and have less need to earn income on their own.
• The share of Americans choosing to work in blue-collar industries is shrinking as they become more educated or gain a college degree. This has caused a skilled labor shortage in the US labor market.
• There exists a stigma that blue-collar jobs involve labor-intensive work. And there is a misconception that blue-collar work offers low and stagnant wages.

Opportunities for Restoration in the Blue-Collar Labor Force

On the flip side of these challenges, there are also opportunities that are emerging in the blue-collar labor market in the U.S. For example, the shortage in labor workforce translates to bigger paychecks for those being hired. And a higher paycheck leads to a higher level of satisfaction with their jobs. This claim is supported in this news report from CNBC, citing a significant wage boom in the blue-collar industry. With the economy reopening, there is a substantial demand for blue-collar workers. The solution that has been considered by employers is to increase the wage per hour for employees in order to entice them to rejoin the workforce.

How Does Generation Z Fit In to Your Restoration Company?

Gen Z workers who are looking to pursue a career in the blue-collar industry are quite discerning about their options. Their expectations about joining the workforce are far different from the baby boomers or the generations before them. As a result, it requires adaptation on the part of the employers, particularly those who want to win the recruitment game. As the newest entrants to the workforce, recruitment teams must understand this audience in order to execute a successful recruitment strategy. Here are some of the things that Gen Z wants in the workplace, especially those looking for a blue-collar job (we’ll call them Blue Z’s):

• Salary – Salary ranks at the top among Gen Z workers when it comes to considering whether to accept a job or not. However, since many of these workers are first-timers, their expectations are across the board. It is important to keep an open-mind when negotiating salary.
• Work-Life Balance – Generation Z understands it is difficult to completely shut off work once you step out of the office. Therefore, they are stepping away from the typical concept of work-life balance and demand flexibility in terms of taking time off when needed.
• Benefits – Just like the generations before them, Gen Z workers expect to receive the most basic forms of employee benefits, including medical insurance, retirement savings, and vacation packages, among other things. New and more innovative benefits programs can also appeal to Blue Z’s.

These are just some of the ways you can attract talent from the labor pool to join your restoration business. It’s important to put emphasis on providing flexibility and opportunities for growth among the young talent, since they are known to have the tendency to job-hop if they find a better opportunity elsewhere. And speaking of other opportunities, the competition is another factor to take into account when hiring young talent into your restoration business as there are other fields they are open to pursuing, as well. The restoration and blue-collar industry is not alone in these recruitment struggles. Even the military and law enforcement agencies are struggling to recruit the Gen Z workforce. As the military failed to reach its recruitment goal, they, too, had to devise new strategies to entice younger people to enlist. One of the best examples of how the army is thinking outside of the box to bring in more recruits is by venturing into the e-sports community. They are aware that a lot of Gen Z’s are into e-sports, so they are leveraging that exposure to further their recruitment efforts. In times like these, it’s important to get creative and devise unique strategies to help you reach the potential talent you wish to recruit.

In Summary

Any form of crisis presents challenges and opportunities. For restoration businesses, you’ll need to appeal to the needs of the blue-collar workforce in order to win the best employees. The Gen-Z workforce is completely different from the generations that came before it. Therefore, you must learn to adapt to these changes if you want to fill your talent pool. Your work begins even before the recruitment process, but it will prove worthwhile when you land the right talent. Contact More Floods for more insights into growing your water damage business!