Our last blog discussed forces driving growth in the health technology industry. If you missed that post, you can go back and read it here. This blog explores how industry growth is colliding with talent shortages.
To briefly recap our last blog, key driving forces in the health technology industry are:
- Accelerating industry growth
- Medical Device Excise Tax
- U.S. investments
- Trade policy
- Device connectivity
- Cybersecurity regulations
- International regulatory landscape
- Increase in device and drug FDA approvals
As industry growth collides with increased talent shortage we explore how talent scarcity has evolved.
Pressure from a tight labor market
The unemployment rate at the end of 2018 was the lowest it has been in 50 years, 3.9% nationally. With such an overwhelming majority of Americans employed, it is now more difficult than ever to recruit high-quality talent for open positions in your organization.
Alongside the historically low rate of unemployment, growth of the labor force is slowing — projected to increase at an annual rate of 0.6% according to the Bureau of Labor Statistics. While this is slightly faster than the 0.5% experienced from 2006-2016, it is slower than the data from several decades earlier. In combination with the health technology industry growth of 5% or more per year, this will result in an inability to satisfy demand for talent.
Participation in the labor force is slowing
With Baby Boomers beginning to exit the labor pool, participation rates in the workforce are decreasing. From 2007 to 2018, there was a decrease of 5%. The generational gap in the labor force is a problem for industries experiencing growth, such as the health technology industry. Inexperienced millennial workers are overtaking the experienced and knowledgeable Baby Boomers in the labor market, decreasing the availability of high-level leaders for many companies.
During this retirement trend, there is an opportunity to utilize the wealth of knowledge held by Boomers who still want to participate in the workforce. For more information regarding this trend, read our blog found at www.talencio.com called, “The Knowledge Train is Leaving! Mind the Gap.”
Lack of new skilled graduates
Lastly, the lack of new skilled graduates in the labor market has had added to the talent shortage. The workforce needs more skilled workers, like engineers and scientists. By 2025, the U.S. will need to fill about 3.5 million jobs in manufacturing alone. An estimated 2 million of those jobs will go unfilled due to the low availability of workers with the necessary skills.
All of these factors contribute to the growing issue of talent shortage in the workforce. This is especially true for the health technology industry because the demand for talent is growing while the availability of talent is decreasing. Company leaders need to be aware of this challenge and develop a talent-acquisition strategy to address their talent needs. We will address this in our next blog on this topic.
To learn more about talent shortage in the health technology industry, read our report: 2019 Health Technology Driving Forces.
If you are a health-technology company looking to hire new talent and you want to partner with an organization that specializes exclusively in the health-technology industry, Talencio can help. Talencio is comprised of a diverse team of health technology professionals with extensive industry experience. Our unique partnership approach enables us to be your safety net whenever anticipated or unanticipated staffing needs arise. Talencio has been the preferred provider of vetted, accomplished professionals to the Health Technology Community for over 11 years. To learn how other companies have partnered with Talencio, tap into our skilled professional talent pool, or learn about career opportunities, contact us at 612.703.4236 or by email.
Written by: Ben Kvale, Talencio Marketing Intern and student at North Central University in Minneapolis, MN.