The US economy and the problem of skilled labor shortage

VTV.vn - According to a survey by the Resume Builder platform, about 37% of Gen Z youth in the US have or will choose to do manual labor.

Amazon's massive layoffs

Last October, 14,000 Amazon office workers were sent layoff letters, each one informing them that their positions had been removed from Amazon's system. Many people told Business Insider they were still shocked because they had performed well before the layoffs. Some were even considered top performers the month before, but were laid off the following month.

The suddenness of the layoffs, combined with the difficult job market, has made it difficult for many former Amazon employees to move on. Some have shared that they submitted 100 job applications without having had a single interview. And the same situation is happening elsewhere, as large companies like Verizon and UPS have been cutting tens of thousands of redundant jobs, in an effort to restructure their businesses and save costs.

Amazon laid off 14,000 office workers in October

Wave of layoffs at major US corporations

For much of 2025, no hiring, no firing is the phrase used by HR and finance professionals to describe the “frozen” state of the US labor market. Businesses are not expanding new recruitment, but are also limiting layoffs for fear of a shortage of workers when the economy recovers.

However, the situation has gradually changed in the last months of the year. In addition to Amazon, the telecommunications company Verizon has announced a reduction of 15,000 employees, while the delivery group UPS has been more aggressive with 48,000 people. Many opinions say that the market is moving into a more difficult phase: not hiring, but starting to lay off.

"There's been a surge in layoffs at large companies, especially in the tech sector," said Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management. "This has led to some concerns: will artificial intelligence take away jobs? Will companies grow well?"

However, while large companies have surplus staff, small businesses face the exact opposite problem. A recent Bank of America survey found that 60% of small businesses are struggling with staff shortages. 43% said they plan to hire more in the next year.

“It’s important to note that the vast majority of jobs created in America actually come from small and medium-sized businesses,” said Mike Archbold, Commissioner of Economic Development. “So while big business moves get a lot of attention in the press, it’s small businesses that will have the most impact on job creation in the future.”

These mixed signals partly reflect the complex employment picture in the US. The number of announcements of imminent layoffs across the US jumped last month, reflecting the tightness in the labor market, according to the Cleveland Fed. Meanwhile, the non- farm payrolls just released still showed a higher-than-expected increase in employment, along with the highest unemployment rate in the past four years.

Changes in employment trends among young Americans

In the context of a complex and unpredictable job market, young people - specifically Gen Z - the generation born between 1997 and 2012 - are being affected the most.

A recent report by Oxford Economics shows that the unemployment rate for 16-19 year olds and 19-24 year olds in the US is 14% and 9% respectively - much higher than the national average. Young people, especially recent graduates, face many obstacles such as temporary job loss, being fired, difficulty in transferring contracts... This causes their ability to advance and increase their salary to stagnate significantly.

Due to the lack of jobs, many young people are unable to leave their parents' homes and this burden is negatively impacting the economy. Experts estimate that Gen Z still living with their parents limits consumer spending, causing a loss of $12 billion a year. This difficult situation is contributing to a change in the employment trends of young Americans.

According to a survey by the Resume Builder platform, about 37% of Gen Z young people in the US have or will choose to do manual labor. These jobs are currently considered to have good prospects, thanks to the high demand for skilled workers and the low risk of being replaced by artificial intelligence. Vocational training is also faster and cheaper than pursuing a traditional degree, helping workers avoid long-term debt, in the context of rising university education costs. In addition, the salaries of some occupations such as electricians, plumbers, elevator technicians, etc. are also considered quite attractive.

Many industries in the US will continue to struggle with a shortage of highly skilled workers.

The US economy and the problem of skilled labor shortage

The shift of young people from white-collar jobs in offices, where there is a labor surplus, to blue-collar jobs in factories, could be the solution to the difficulties of the manufacturing industry in the US. This industry is currently in dire need of skilled human resources in the context of the "Bring manufacturing back to America" ​​campaign of President Donald Trump's administration that has attracted a series of large-scale projects.

In a recent sensational statement, Ford CEO Jim Farley announced that his company has 5,000 unfilled positions for senior mechanics. Even though these jobs, for highly skilled workers, can pay as much as $120,000—higher than the average starting salary for graduates from Harvard and many prestigious Ivy League schools. And the story doesn’t stop at Ford, as Farley himself admits.

"America is in trouble because this issue is not being addressed properly. We need to recruit more than 1 million jobs in essential industries, such as emergency services, truck drivers, electricians... This is a serious problem," said Mr. Jim Farley - CEO of Ford Group.

Clearly, the demand for human resources in many industries in the US is very large. If only counting the manufacturing sector, businesses currently need to recruit about 400,000 jobs, according to data from the US Department of Labor in August.

However, there are many barriers that make it difficult for businesses, even big names like Ford, to fill these positions, especially in the high-skilled job group. For example, removing an engine from a Ford truck requires at least five years of specialized training, but currently, US vocational training schools are not enough to meet the number of workers that businesses need. Difficulties from tariffs and policy changes also make it difficult for the manufacturing industry to attract talent.

Mr. Olu Sonola - Head of US Economic Research, Fitch Ratings commented: "Although the manufacturing industry has high recruitment demand, this is a field where American workers always lack trained skills. As a result, many positions are taken by immigrant workers and when the immigration wave has recently decreased, this field will have difficulty recruiting replacement workers. Tariffs also cause instability in the supply chain, so the manufacturing industry may lose jobs."

There are some positive signs in the labor market, with vocational school enrollment rising 16% last year – a record high in nearly 10 years. But while a new generation of skilled workers is being trained, many industries in the US will continue to struggle with a shortage of highly skilled workers, such as the auto industry, which will be short 68,000 technicians a year for the next eight years.

Source: https://vtv.vn/kinh-te-my-va-bai-toan-thieu-hut-lao-dong-lanh-nghe-100251121132829422.htm