Tennessee doesn't have enough workers to fill all of its open jobs
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Tennessee is facing a chronic labor shortage, and many employers are calling for the state to step up its efforts to train and educate new workers.
Why it matters: Even if every unemployed person seeking work in Tennessee got hired today, it wouldn't be nearly enough to satisfy the demand from employers.
- There would still be 64,000 jobs left unfilled.
Zoom in: Don Bruce, director of the Boyd Center for Business and Economic Research at the University of Tennessee, presented that statistic to a panel of economic leaders last month.
- Bruce said he suspected "Tennessee businesses would be hiring more if we had enough people to fill the positions."
- Unemployment remains at near-historic lows in Tennessee, meaning the pool of potential employees is particularly small.
State of play: About 61% of Tennessee business leaders surveyed this summer reported a lack of "appropriately trained workers." More than half of business leaders called on the state to bolster its training and education programs to help employees develop technical skills and good work habits.
The big picture: Tennessee isn't alone. Labor shortages have become a national issue in several sectors, including child care and health care.
Driving the news: Bruce said the shortage in Tennessee is tied to dueling trends: The share of people looking for work has fallen as demand for employees has ticked up.
- Federal data shows the workforce participation rate in Tennessee this fall is 59.4%, down from the low 60s before the pandemic.
Between the lines: The reasons behind the state's sinking workforce participation rate are complex. Bruce attributed some of it to an influx of early retirees who have moved to Tennessee in recent years.
What he's saying: "What we've learned in the last few years is it's really hard to turn that trend around with policy," Bruce said.
- "If somebody has done really well in the real estate market and sold a house for a lot of money and decided to retire early, they've won the game. No policy is going to get them to go back to work."
What we're watching: Bruce pointed out a labor shortage can have a silver lining for workers: It can push wages up.