Labor shortages aren’t just a headline; they’re a daily reality for HR and people leaders.
Between an aging workforce, fewer younger workers entering the pipeline, and skills that aren’t keeping up with the pace of change, it’s getting harder to find (and keep) the right people.
The old ways of hiring and workforce planning aren’t built for this moment. But there’s a way forward.
Below, I’m going to lay out some practical, no-fluff ideas for navigating the talent crunch.
Whether you’re building out a global hiring strategy or trying to upskill your existing team, we’ll walk through what’s working right now and what to shift in your approach so you’re not stuck playing catch-up later.
The Labor-Shortage Numbers HR Can’t Ignore
If you’re having a harder time filling roles, even with plenty of talent still on the market, then you’re not alone. And it’s not just a short-term blip.
The data points to a systemic labor shortage that will likely deepen over the next decade, putting real pressure on HR teams to think differently about workforce planning.
A global talent gap is already forming. A study from Korn Ferry estimates that by 2030, more than 85 million jobs could go unfilled worldwide, translating to $8.5 trillion in lost revenue.
And this impact is already being felt.
According to ManpowerGroup, 74% of employers globally say they can’t find the skills they need. Even companies with strong employer brands are struggling to close roles fast enough.
In the U.S., the labor pool is shrinking. The Bureau of Labor Statistics projects labor force participation will dip from 62.6% in 2023 to 61.2% by 2033 (BLS.gov). That might not seem like a big decrease, but that translates to millions of workers not in the market, making recruiting even more competitive.
What’s causing the squeeze? Skills.
The World Economic Forum found employers cite the skills gap as the number one obstacle to business transformation.
Even when candidates are available, they often aren’t job-ready. Reskilling can’t be optional anymore (like in AI); it has to be part of the workforce strategy.
The Industry Impact
Certain industries are feeling the pressure more than others.
In healthcare, for example, the U.S. is projected to face a shortfall of more than 508,000 registered nurses by 2037, according to the Bureau of Health Workforce. These kinds of shortages aren’t just inconvenient, they put business continuity and community well-being at risk.
This moment calls for HR teams to think like supply chain strategists.
Map your talent gaps, diversify your sources (including global talent), and build in buffers with strategies like upskilling and contingent hiring.
The labor market has changed, and your talent approach has to change with it.
Why the Gap Keeps Widening
It’s tempting to treat the labor shortage like a passing storm, but the reality is it’s been building for years and several forces are now causing it to speed up.
1. Demographics aren’t on our side
The workforce is aging, and retirement is picking up speed.
Baby boomers are leaving the job market faster than younger workers can replace them. In some industries, like manufacturing or healthcare, the bench just isn’t deep enough — and we’re not training new talent quickly enough to fill the gaps.
2. Skills have a shorter shelf life
Technology is evolving faster than most companies can keep up. Hello, AI, and all the rapid changes happening there!
The half-life of skills — especially in tech, data, and digital operations — keeps shrinking.
What someone learned three years ago might already be outdated today. And yet, most learning and development programs haven’t been built to move that fast.
3. Geography still limits opportunity
Despite remote work gains, many companies are still locked into traditional ideas, like paying differently based on where someone lives or requiring people in specific roles to stay “close to HQ.”
On top of that, immigration remains a slow, uncertain process in many countries, keeping talent out even when the demand is high.
Luckily, you can find partners to help your company navigate these challenges. For example, at RemoFirst, beyond our standard global employment services, we offer visa and work permit support in over 85 countries.
4. Worker expectations have changed
People aren’t just looking for a paycheck — they also want flexibility, purpose, and opportunities to grow. Of course salary matters, but employer expectations have changed big time.
If a role doesn’t offer those things, they’re far more willing to pass or leave for something that does. That’s a major shift from how work used to operate, and it’s catching some organizations off guard.
5. You’re not just competing with the company down the street
Everyone is recruiting everywhere. Startups, remote-first companies, and tech giants alike are tapping into global talent pools.
If your hiring strategy is still local or rigid, you’re losing out to employers who’ve already widened the net.
Because while you’re still debating remote or general hiring policies, others are building global teams and future-proofing their businesses.
The next decade of hiring belongs to companies that think beyond borders.
Remember, the above aren’t trends to wait out — they’re the new reality. And understanding what’s fueling the shortage is the first step toward building smarter, more resilient hiring strategies.
Strategic Response Framework for HR Leaders
There’s no silver bullet for labor shortages, but there is a smarter way to respond.
The most effective HR teams aren’t scrambling to backfill roles. They’re building resilient, forward-looking strategies that can flex with whatever the market throws at them.
Below, we’ve laid out a practical framework across five key areas. These aren’t lofty ideas — they’re grounded actions you can start taking in the next 12 months.
Whether you’re revisiting your workforce plan, rethinking your hiring footprint, or investing in your internal talent, these levers can help you stay ahead of the curve and the competition.
Going Global to Beat the Talent Crunch
When local talent pools dry up, it’s time to take a step back and widen your view.
Going global isn’t just a workaround, it’s a strategic edge. The right international hire can bring in hard-to-find skills, fresh perspective, and serious momentum for your team.
Take AI and machine learning, for example. Eastern Europe has become a hub for top-tier engineers, while countries like Vietnam are home to highly skilled embedded systems developers.
These talent pockets are growing, but you're missing out if you're only looking close to home. If you are curious about more hubs on finding talent, check out the below insights:
- Are Micro-Hubs the Future of Finding Top Global Talent?
- 10 Best Countries to Find Global Talent, According to Data
That said, global hiring isn’t without its challenges, and there are a few important considerations to keep in mind. For starters, you’ll want to have guardrails in place around compliance, IP protection, and cultural alignment.
Time zones matter, too. Not everything has to be synchronous, but some overlap goes a long way in building team cohesion.
Here’s a quick and practical action sequence to make global hiring work for your org:
- Identify 3–5 high-impact roles that would benefit most from a global talent search. These are often roles where time-to-fill is long, or skills are highly specialized.
- Choose an Employer of Record (EOR) partner to handle legal employment, payroll, and local compliance. Look for providers that are upfront about costs and offer strong support and benefits in the countries you’re targeting, like RemoFirst.
- Create async-first norms, but also build in shared time zone “golden hours” — about three hours of overlap is often enough to stay connected without forcing awkward working hours.
- Localize your onboarding experience. Go beyond paperwork with country-specific welcome kits and cultural notes and assign local mentors to help new hires feel at home from day one.
Global hiring isn’t just about filling gaps — it’s really about unlocking new potential. The companies that move first and get it right will have a serious head start as the talent race heats up.
Quick‑Start Checklist (Next 90 Days)
Big strategies are great, but momentum starts with action. If you're looking for innovative ways to make progress now (without overhauling your entire HR stack), this 90-day checklist is a solid place to begin.
These quick wins can help you uncover hidden talent, tighten your processes, and test new approaches with minimal lift.
Here’s where to focus first:
☐ Audit current requisitions
Flag any roles that have been open for 45+ days — they may need a rethink on scope, compensation, or sourcing strategy.
☐ Build a “silver‑medalist” talent community
Create a space (Slack channel, CRM, or email list) for high-potential candidates who weren’t hired, but could be a great fit for future roles.
☐ Publish your internal skills inventory
Make existing skills across your org visible and encourage employees to self-update. This helps surface internal mobility opportunities you might otherwise miss.
☐ Engage two global talent markets
Pick two regions that align with your hiring needs and run a pilot sourcing search. This helps test interest and get ahead of compliance considerations early.
☐ Bundle L&D stipends into the next comp cycle
Add learning and development dollars to compensation packages, even modest budgets can signal serious investment in growth.
☐ Launch a pulse survey on flexibility
Get a read on what your team actually wants regarding hybrid, remote, and async options. Use that data to inform your retention and EVP strategy.
Rethinking the Role of HR From Employment to Ecosystem
The labor shortage isn’t just a hiring problem, it’s a chance for HR leaders to redefine their impact. We’re entering an era where the traditional boundaries of work no longer hold.
Employment isn’t confined to full-time roles anymore. It includes alumni, freelancers, contractors, and global contributors all playing a part in how work gets done.
Deloitte calls this shift a move toward a “boundary-less world of work” — and it’s already here.
As the people function evolves, so does the expectation: HR is now a steward of a broader talent ecosystem, one that includes career development, community building, and economic opportunity across borders.
Looking ahead to 2026 and beyond, a few trends are already taking shape.
- Automation and AI will erase some routine work but intensify the demand for systems thinkers and creative problem‑solvers.
- Expect skills‑based org charts (roles decoupled from titles).
- Immigration reform debates may open or constrict pipelines. So it’s essential to maintain contingency plans and work with an Employer of Record partner to help navigate.
- HR leaders who master global, skills‑centric, and data‑rich talent models will out‑innovate their peers.
Bottom line:
HR leaders who lean into skills-first thinking, build resilient talent networks, and embrace data as a strategic tool won’t just survive the talent crunch, they’ll come out of it stronger, more agile, and better positioned to lead.
Act Now, Share What Works
Labor shortages aren’t going away. With aging populations and rapid digitization reshaping the workforce, the pressure on HR will only grow.
But there’s good news: you don’t need to solve everything at once. The most resilient companies are those that start small, move fast, and treat every step as a learning opportunity.
A dual approach is your best bet — invest in building talent from within while expanding your reach beyond borders. The combination of internal growth and external flexibility gives you the stability and agility to weather whatever comes next.
And your next move? Bring together your HR, Finance, and Ops leaders this month. Outline a 12-month pilot to explore borderless hiring and upskilling; ideally, you'll do both.
Start with one or two roles, test what works, and adjust as you go.
Most importantly, share what you learn. The talent crunch is a shared challenge, and every success story helps move the whole industry forward.
