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Manufacturing Skills Gap Widens in the Wake of COVID-19

A new study by Deloitte and the Manufacturing Institute says the pandemic erased 1.4 million U.S. manufacturing jobs. And, even as the industry rebounds, the remaining unfilled jobs could cost the U.S. economy $1 trillion.

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Over the past six years, the manufacturing industry successfully added about 600,000 jobs,  making some headway toward solving its biggest challenge of attracting and retaining a quality workforce.

But it’s one step forward and two steps back for the industry. That’s because it lost its momentum last year when the pandemic wiped away 1.4 million U.S. manufacturing jobs. While we recouped the majority of those jobs by the end of 2020, about 570,000 jobs remain unfilled according to information released in the 2021 Manufacturing Talent study from Deloitte and the Manufacturing Institute (MI). This is the duo’s fifth manufacturing talent study which was fielded between December 2020 and February 2021 and surveyed more than 800 U.S. manufacturing executives across all sectors.

And, despite the fact that the unemployment rate remains high, the majority of survey respondents said that finding the right talent is now 36% harder than it was in 2018, with 77% of surveyed manufacturers saying they will have ongoing difficulties in attracting and retaining workers in 2021 and beyond.

The Manufacturing Talent study found mid-level skillsets are needed the most.The Manufacturing Talent study found mid-level skillsets are needed the most.Deloitte

 And, while there’s always need for engineers, really, these companies are just trying to fill entry-level positions. All it requires is a good work ethic and the ability to follow directions. There’s also a need for mid-level skilled jobs, such as welders or CNC machinists, which may require a certification, but not a college education. So, with so many people displaced from other industries like the hospitality and restaurant businesses, the question is: “Where are the people?”


Read article   Read this article on how to build the future workforce as the skills gap widens.


 If we stay on this track, the U.S. manufacturing skills gap could leave as many as 2.1 million jobs unfilled by 2030, according to the study, which is concerning because manufacturing has the highest multiplier effect of any economic sector: “For every $1.00 spent in manufacturing, another $2.74 is added to the economy. Using this multiplier, leaving the open jobs unfilled in manufacturing could bring a potential negative impact to the U.S. economy of more than $1 trillion by 2030 alone.”

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