How Is Louisiana Handling A National Labor Shortage

Since the world shut down five years ago, there has been a labor shortage across the country. Even a year ago, experts estimated the manufacturing industry was short 550,000 workers. Now, half a decade removed from the world coming to a halt, employers are still finding it difficult to fill positions. New data shows just how bad the problem is in Louisiana.

Why Is There A Labor Shortage Five Years On?

The labor shortage isn't just a problem in America; countries across the world are feeling the heat. The reason for a shortage is up to interpretation but the reason is up for debate, really because there isn't one thing to blame. Some point to the fact that birth rates have been on a decline, so as older generations age out of the workforce there aren't as many people there to fill in their jobs.

Others like the former U.S. Secretary of Labor, Robert Reich, pin the blame on employers. In an opinion piece, Reich argues that the labor shortage is not real, instead there's a shortage of good-paying jobs. Reich points out that the federal minimum wage hasn't been raised in 13 years, the longest period we've gone as a country without raising the minimum wage. The minimum wage, when calculated for inflation, is currently the lowest value it's been in 68 years, meaning the modern minimum wage is equal to the minimum wage of $1 per hour in 1957.

Louisiana Employers Have The 10th Hardest Time Finding Employees

A new study from WalletHub collected hiring data from all 50 states to see how hard the labor shortage problem has been in each state. Over the last year, Louisiana has seen a decrease in the rate of job openings, going from a rate of 5.53% down to 5.40%. The job openings rate is a measure of job openings compared to the total number of jobs, both filled and currently unfilled.

This places Louisiana high among other states struggling to fill out their workforce, states like Georgia and Virginia have a job openings rate of 5.70%. Over 33 states have a job openings rate of 5% or under, while states like Kentucky are struggling to hire with a rate of 6.5%.

While the job market has gotten easier since the start of this labor shortage nationally the job openings rate sits at 4.5%, down from the peak of 7.4% in 2022. The current rate is still high, the second highest the job openings rate has peaked since 2018. As things continue to cool down, hopefully, the problem will subside as businesses recover from a half-decade-long ordeal.