The labour pool in a particular business and/or economy, as well labour availability in the numbers required, when required can promote or hinder business/economic development within sectors and across sectors.
Timing for meeting and delivering work force requirements is also critical. Acquiring the right skills months later than when required can impair the acquisition of business and economic development opportunities. Over time these impacts may reduce growth at exponential rates - continuously compounding the size of negative business and economic development results.
Other characteristics of the labour pool may also have impacts on economic retention, expansion and success. Some of those attributes include the adequacy of skill sets in the available pool for specific positions, the prior experience of available candidates, the professional and technical networks held by possible candidates Inadequate numbers of available workers and/or inadequate skill levels of available staff reduce business and economic growth and wealth creation. The impact of the business or economic development opportunity missed today because of labour deficiencies, oftentimes can never be recouped.
Labour shortages and/or inadequacies can also reduce efficiency and effectiveness of businesses specifically and the economy generally. Labour inadequacies have impacts at every step of the industry and economic value chain which include the following. They can:
- hamper and reduce investment,
- reduce revenues and profits,
- endanger the sustainability of businesses,
- reduce the competitiveness of businesses and economies.
Moreover, while businesses and whole sectors faced with inadequate labour pools siphon employees from each other, they create labour shortfalls and inadequacies in other businesses and sectors while exerting upward pressure on wages and producing organizational instability. More about these other labour pool factors in our next issue.
Ad�lard A. “Ed” Cayer
Economist, educator and university adjunct professor, investor, businessman, publisher, international marketing expert, broadcaster, business and development specialist, his management, analytical and varied sectoral and volunteer experience spans decades working with and guiding teams in the private and public sector internationally, nationally, regionally and locally.