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The historic labor shortage’s impact on insurance

The historic labor shortage’s impact on insurance

The combined forces of pandemic disruptions, the “great resignation,” as workers re-evaluate their jobs, and the “great retirement,” as baby boomers leave the workforce, are creating a historic labor shortage. Here’s how to stay on top of the rising risks businesses are facing today.

The state of the American workforce

  • 57 percent of contractors say the labor shortage is their top safety challenge.1
  • 524K healthcare workers have left their jobs since the start of the pandemic.2
  • 826K manufacturing jobs were unfilled as of June.3

Risks rise with fewer workers

  • Overtired or untrained workers are more injury prone.
  • Unskilled workers make more mistakes, increasing liability risks.
  • Inexperienced or exhausted drivers get in more accidents.
  • Overstrained workers can damage equipment and other property.

Mitigating labor shortage risks

  • Offer robust pay and benefits to attract and retain workers.
  • Look to automation and technology to augment your workforce.
  • Recruit from broader talent pools and loosen hiring criteria.
  • Emphasize new worker training and safety programs.
  • Reassess your risk-management strategy.
Construction worker wearing a mask

The labor shortage is raising questions

Today’s historic labor shortage means more than just a lag in hiring. Having overstrained, absent, or untrained workers carries insurance risks, from increased injuries and professional and product liabilities, to more auto accidents and damaged equipment.

Tackling the labor shortage takes talent — we can help.

Get answers

This website is general in nature, and is provided as a courtesy to you. Information is accurate to the best of Liberty Mutual’s knowledge, but companies and individuals should not rely on it to prevent and mitigate all risks as an explanation of coverage or benefits under an insurance policy. Consult your professional advisor regarding your particular facts and circumstance. By citing external authorities or linking to other websites, Liberty Mutual is not endorsing them.