INFORMS Open Forum

Recently I had the opportunity to listen to an episode of the Informs Resoundingly Human podcast, titled "Help wanted: The reasons behind the current labor shortage". It covered the labor shortage following the COVID-19 pandemic, when over 9 million workers in the United States lost their jobs. Despite workplaces opening back up by mid-2021, many positions were left unfilled, indicating a labor shortage in the United States workforce. Robert Handfield from North Carolina State University outlined some of the reasons behind this labor shortage. 

An aspect of the podcast that worked well was how clearly articulated the points were. Robert Handfield very clearly explained that the pandemic hit every industry, particularly food services, manufacturing, and processing. He also expressed that many people were afraid to work closely due to uncertainties regarding the COVID-19 virus, and that the Biden administration's Relief Bill along with rent pauses made it possible for many workers to continue on without immediately finding work again. Additionally, many older employees made the decision to retire during COVID, further adding to the decline in available workers. 

A point that stood out to me was how the labor shortages in logistics and transportation impacted nearly all other industries. Shortages in truck drivers and warehouse workers already existed before COVID, but worsened during the pandemic. The product shortages that were reported during the COVID pandemic were caused partly by labor shortages in logistics, a point I found relevant and important to understanding supply chain shortages.

Additionally, it was very interesting to listen to this episode and reflect in hindsight. Three years after this episode was first uploaded, many of the predictions made by Robert Handfield are turning out to be correct: many employees still strongly prefer working from home. Most companies operated on a hybrid format for the past three years, where employees were asked to work in-office two or three days a week and allowed to work remotely on the other days. However, more and more companies are beginning to require their employees to commute to work in-office, a decision many employees are unhappy with. It's interesting to note that unlike during the initial period after COVID-19, employees now have less leverage regarding a flexible working environment. Layoffs continue to happen and many people are in search of jobs, so employees today are less likely to quit and search for a new job if they are required to return to in-person work.