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We’re living through a unique moment in United States history.

The labor shortage of 2021 (and beyond)

Scroll for the full story, or jump to a topic:

The shortage at a glance

What’s behind the shortage?

The impact on customer experience

What does this mean for your business?

For the first time in 15 years, the number of open jobs is roughly equal to the number of unemployed workers.

Graph showing 9.2 million open jobs and 9.3 unemployed workers in the US (source: US Chamber)

For employers, that makes finding—and retaining—skilled employees more difficult than ever.

See how Ruby can help
50% of business owners say "it's gotten harder to find qualified people to hire."
32% of US-based companies are struggling to find the talent to fill open positions.
Worker participation in the labor market is at a 45-year low.
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50% of business owners say "it's gotten harder to find qualified people to hire."
32% of US-based companies are struggling to find the talent to fill open positions.
Worker participation in the labor market is at a 45-year low.
Previous
Next

On top of that, workers are quitting at historically high rates. According to Axios:

"Quits as a percentage of total separations—which includes layoffs, firings and retirements—reached 69.3% in June [2021]."

A small downward dotted purple arrow

What’s behind the shortage and quit numbers?

There are numerous factors, motivations, and causes, many of which relate to the ongoing COVID-19 pandemic:

Health and safety concerns

Lack of affordable and safe childcare

The pressures of remote learning on working parents

Rising levels of burnout, anxiety, and depression

In addition, there is a growing misalignment between companies and workers around work–life balance, especially as costs of living continue to rise.

A graph showing the rising Consumer Price Index (CPI) since 1950
Graph showing Consumer Price Index rising since 1950

Many people prefer the flexibility of remote work and are leaving companies that require employees to work in shared physical spaces. And more employees are leaving roles for higher pay as well as opportunities to pursue their passions and develop soft skills. 

Today’s employees are looking for:

Flexibility

Meaning

Better pay

Equity

Professional development

Rewarding work

  • Flexibility
  • Meaning
  • Better pay
  • Equity
  • Professional development
  • Rewarding work

But while many employers are working to improve their pay, benefits, training, and worker experience, these changes take time, and the labor shortage is creating significant gaps right now.

Ruby can fill the gap
A small downward dotted purple arrow

The shortage is affecting customer experience.

All businesses are dealing with the same challenges, but some jobs are particularly hard to keep filled—namely, jobs that involve customer service, support, and communication.

That means the labor shortage is not only affecting businesses from a staffing perspective, but dragging down customers’ and clients’ experiences.

That means the labor shortage is not only affecting businesses from a staffing perspective, but dragging down customers’ and clients’ experiences.

A lack of customer-facing workers means…

Long wait times

Missed calls

Unanswered questions

Lack of empathy & understanding

More mistakes & mixups

Unmet customer expectations

Poor customer experiences

…all of which lead to missed opportunities, unhappy customers, and damage to businesses’ reputations and bottom lines.

A small downward dotted purple arrow

What does this mean for your business?

This is a defining moment for businesses—an opportunity to review your hiring practices, compensation, and the flexibility you offer employees.

Even with change, however, an employer starting a job search right now would likely need to wait weeks, if not a month or longer, before having a fully onboarded and trained employee ready to communicate with customers.

The labor shortage has created a highly competitive job market in nearly every industry. Flip your industry card to see the average time to hire:

Business Services

25 days

Construction

13 days

Education

29 days

Financial Services

21 days

Home Services

31 days

Healthcare

49 days

Legal

28 days

Manufacturing

31 days

Real Estate

31 days

Change takes time. If you need help right now, consider a customer communication solution like Ruby.

Ruby's highly-trained virtual receptionists are ready to start now.

We answer all your calls and website chats live, creating meaningful connections and unforgettable customer service experiences. It’s all powered by award-winning training and industry-leading company culture.

Ready to join 14,000 other small businesses using Ruby? Enter a few key details below and we’ll be in touch shortly or call us at 844-311-7829.

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Perspectives on the labor shortage

"We have changed. Work has changed. The way we think about time and space has changed."
–Tsedal Neeley, Professor of Business Administration at Harvard Business School and organizational behavior researcher
"I think [the shortage is] a long-term issue. I think it’s going to take a long, long time to rebuild it. … Where are these 14 million Americans? Where are all these people that are not working at the restaurants that are closed, or the shops that are closed?"
–Colin Davis, co-owner of Chico Hot Springs Resort in Pray, MT
"I made $10 an hour when I was a hotel cook, and then 15, 20 years later, that was still the wage. … We can’t get by on 10 percent to 15 percent profit anymore. We have to increase our prices, and we have to educate our customers that is part of the process."
–Shannen Tune, chef owner of Craft Burger in Houston, TX
“There is a tendency in the United States for putting a lot of weight on extremely long hours for no particular reason. … This has been one of the major hindrances standing in the way of women succeeding in their careers.”
–Esther Duflo, Nobel laureate and professor of Poverty Alleviation and Development Economics at MIT
“[Flexibility] has certainly become my main concern about going back to the office. I believe my mood for work will not be the same.”
–Melvin Gonzalez, certified public accountant for Inc and Go
"The problem is we are not making enough money to make it worth it to go back to these jobs that are difficult and dirty and usually thankless. You’re getting yelled at and disrespected all day."
–Sara Wojtala, former retail worker
"For 20 years, we haven’t trained and spent money on educating, and at the same time a lot of the industry is retiring. So the skills gap is going to get worse before it gets better.”
–Ed Brady, president and CEO of the Home Builders Institute
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Next
"We have changed. Work has changed. The way we think about time and space has changed."
–Tsedal Neeley, Professor of Business Administration at Harvard Business School and organizational behavior researcher
"I think [the shortage is] a long-term issue. I think it’s going to take a long, long time to rebuild it. … Where are these 14 million Americans? Where are all these people that are not working at the restaurants that are closed, or the shops that are closed?"
–Colin Davis, co-owner of Chico Hot Springs Resort in Pray, MT
"I made $10 an hour when I was a hotel cook, and then 15, 20 years later, that was still the wage. … We can’t get by on 10 percent to 15 percent profit anymore. We have to increase our prices, and we have to educate our customers that is part of the process."
–Shannen Tune, chef owner of Craft Burger in Houston, TX
“There is a tendency in the United States for putting a lot of weight on extremely long hours for no particular reason. … This has been one of the major hindrances standing in the way of women succeeding in their careers.”
–Esther Duflo, Nobel laureate and professor of Poverty Alleviation and Development Economics at MIT
“[Flexibility] has certainly become my main concern about going back to the office. I believe my mood for work will not be the same.”
–Melvin Gonzalez, certified public accountant for Inc and Go
"The problem is we are not making enough money to make it worth it to go back to these jobs that are difficult and dirty and usually thankless. You’re getting yelled at and disrespected all day."
–Sara Wojtala, former retail worker
"For 20 years, we haven’t trained and spent money on educating, and at the same time a lot of the industry is retiring. So the skills gap is going to get worse before it gets better.”
–Ed Brady, president and CEO of the Home Builders Institute
Previous
Next

Research sources:

Axios
CNN
GoBanking
The Balance
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