Actalent Releases Labor Market Analysis and Recommended Employer Strategies to Mitigate the National Talent Shortage

New report examines current market pressures, impact on STEM skillsets, and how employers can cope

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Feb 01, 2022, 08:23 ET

HANOVER, Md., Feb. 1, 2022 /PRNewswire/ -- Actalent, a leading engineering and sciences services and talent solutions company, has released a whitepaper, "First Come Droughts, Then Come Fires," that examines today's talent shortage and highlights pressures in science, technology, engineering, and mathematics (STEM) fields. The first in a three-part series, the analysis is followed by answers to leaders' most pressing questions about how to mitigate negative effects on business growth and innovation.

The talent shortage is not a new problem, but has been exacerbated by COVID-19. In 2015, 32 percent of businesses reported difficulty finding necessary talent, a number that more than doubled five years later to 70 percent in February 2020, pre-pandemic.¹ On top of that, labor force participation dropped 3.2 points from February to April 2020, to 60.2 percent, increasing only to 61.9 percent by December 2021 due to record job quit rates.²

"The number of STEM talent was already out of balance with demand due to the modernization of work today, but then the pandemic accelerated technology adoption and the need for businesses to pivot operations to a virtual module," said John Flanigan, vice president of strategic operations at Actalent. "In the last quarter of 2021, the national unemployment rate averaged over four percent. The average unemployment rate for key engineering and science skillsets during the same period was less than half of that."

Average Unemployment Rates for Key STEM Skill Sets³

Software/Hardware and Mathematics: 2.2 percent
Architecture and Engineering: 1.6 percent
Sciences (life, physical, and social): 2.2 percent

"Now, more than ever, organizations must invest in their current workforce or risk losing them," continued Flanigan. "The short supply of workers, combined with the extraordinary high need for technical skills, demonstrates that it's an employee-driven market. This is especially pronounced in sectors like engineering and science. These highly skilled professionals have a lot of options and will not stay at a job where they don't feel connected, engaged, and valued. Without strategies in place to address this, the talent drought will quickly turn into a full-blown fire."

For the complete data analysis and Actalent's recommendations, read the full paper here.

About Actalent (formerly Aerotek's Engineering and Sciences divisions and EASi)

Actalent connects passion with purpose. We're supporting critical engineering and sciences initiatives that advance how companies serve the world. With almost 40 years of experience, our scalable engineering and sciences services and talent solutions provide the expertise our customers need to achieve more. Actalent's global footprint and flexible delivery models ensure access to specialized talent where and when you need it. Follow us on LinkedIn and learn more at actalentservices.com.

Actalent is an operating company of Allegis Group, the global leader in talent solutions.

¹ Emsi: The Demographic Drought

² Bureau of Labor Statistics: Civilian labor force participation rate.

³ Actalent: Economy and Labor Market Brief: December 2021

SOURCE Actalent