So-called ”labor hoarding” is a phenomenon that is also present in the Swedish labor market, according to a new study by Unionen. A shortage of skilled workers, recruitment costs, and the hope that the economic slowdown will be brief are leading companies to retain staff in areas where it is difficult to recruit skilled workers, including engineers, IT personnel, and employees in transportation and warehousing.
– Companies believe the situation will soon improve again, and they don’t want to risk losing their most important resource—skilled employees. Instead, they’re choosing to keep their staff on. That’s a wise decision and reflects a long-term staffing strategy, says Tobias Brännemo, chief economist at Unionen.
The Union’s survey points to a widespread skills shortage and suggests that past difficulties in recruiting reflect the decision to let staff ”lie low.” Similar surveys recently conducted in the EU and North America indicate similar behavior there as well.
“But companies must also continuously take responsibility for ensuring a supply of skilled workers. When you retain more staff than current demand warrants, it provides an excellent opportunity to invest in staff development, now that there is time to do so,” says Brännemo.
The survey was conducted September 5–7 through Unionens Snabbpanel, which consists of 479 elected representatives from the private sector. The results of this survey are based on responses from 261 clubs, resulting in a response rate of 55 percent. The survey responses come from clubs active at companies that collectively represent approximately 375,000 employees in Sweden.
