COLORADO SPRINGS — Recently worker productivity has been on the decline, causing a shift in the job market.
According to UCCS Economic Expert Tatiana Bailey, employers are now having to increase wages to attract future employees, while also leading to a trend where workers are getting paid more for doing less.
At the same time, workers are quitting at a high level, meaning new workers are taking more time to learn the job and reach maximum productivity. Another factor is the number of workers which retired during the pandemic.
“Older workers have institutional knowledge that younger workers typically don’t,” said Bailey. “That demographic impact all by itself, can negatively impact productivity quite a bit.”
According to Bailey, we have acute labor shortages in just about every industry and businesses are not able to meet demand because the lack of workers. According to Bailey, 49% of business owners say they have job openings they cannot fill, which is also leading to a decrease in production.
Bailey explains the reason for a decrease in worker productivity is because there are simply not enough workers and businesses cannot meet demand.