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Home News Workforce

Labor Markets Tighten in 10 U.S. States, Posing Challenges for Talent Acquisition

37 states in the U.S., in addition to the District of Columbia, are facing tightening labor market conditions.

Dominic CatacorabyDominic Catacora
June 8, 2023
in Workforce
Reading Time: 2 mins read
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Labor Markets Tighten in 10 U.S. States, Posing Challenges for Talent Acquisition

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What’s going on:      

A number of U.S. states are experiencing an increase in job openings while the supply of qualified workers diminishes, according to a recent report published by LinkedIn.  

LinkedIn reported that as of May, 37 states in the U.S., along with the District of Columbia, are experiencing more of these tight labor market conditions when compared to levels before the COVID-19 pandemic.   

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The 10 U.S. states that have recorded the largest increases in tightening are facing intensified competition for hiring talent. According to LinkedIn, the 10 U.S. states experiencing the most significant increases in labor market tightness are those with smaller populations.  

The labor data reveals that Maine, Alaska, Kentucky, South Dakota, Wisconsin, North Dakota, Iowa, Montana, Nebraska, and Mississippi have seen the greatest increase in tight-labor market conditions. The labor market in these states has made it increasingly challenging for businesses to find and attract talented individuals. 

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Why it matters:         

Tightening labor markets open a wide array of potential job opportunities for job seekers. The tightening markets mean that employees have slightly increased leverage in negotiations and potential opportunities for better compensation and benefits. For employees, it could lead to a more competitive environment in the upcoming years, where workers need to continually upgrade their skills and stay relevant to remain attractive to employers. 

How it’ll impact the future:        

A number of companies, especially those that are based in the top 10 U.S. states experiencing tighter labor markets, will likely adjust their talent acquisition strategies. By focusing on attracting and maintaining talented employees, businesses will place greater emphasis on upskilling and reskilling programs, as well as increased investment in employee development initiatives. 

Source: LinkedIn
Tags: BusinessWorkforce
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Dominic Catacora

Dominic Catacora

Dominic Catacora is a Staff Writer for Allwork.space. He is based in Pittsburgh, PA. He graduated from Radford University in 2017 with a Bachelor of Science degree in Media Studies - Journalism. He has previously covered the Historic Triangle as a journalist living in Williamsburg, Va, and is now focused on writing related to the future of work.

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