Critical shortages | Arkansas Democratic Newspaper

Labor shortages are everywhere, and the situation will only get worse.

Recently, my dry cleaner announced that it will only be open from 7:00 a.m. to 1:00 p.m. on weekdays and will not be open at all on weekends due to the labor shortage. When I took my wife’s car for service, the representative asked if I had seen their new building. I didn’t, and he went on to explain that the purpose of the building was to provide a training space for the young mechanics they were recruiting. They do this in part by attending local high schools. A friend of mine who owns an electrical installation company recruits young people to start the process of obtaining electrician licenses while still in high school. For this purpose, the company has developed its own training program.

I am a retired accountant and the shortage of accountants is acute. The head of one of the city’s largest accounting firms explained that not only are there fewer accountants, but young employees also don’t want to work the number of hours he and I worked as junior accountants. In addition to the shortage of accountants, CPAs in Arkansas can often secure remote work with companies in places like California, where wages are much higher. To address labor shortages, several accounting firms are outsourcing work, in some cases to other countries.

The Little Rock Regional Chamber recognized the labor shortage problem and established a program called the Central Arkansas Academies, headed by Vice President Markous Jewett. This program aims to connect local businesses with local school students. A great example of how this works is the involvement of local banks in developing and launching a student banking program. Most banks are experiencing labor shortages as well as a decline in the number of students pursuing careers in finance. Corporate Academies participants help teach and mentor students, invite them to their companies to present their business, and provide internships and summer jobs.

Companies also cooperate with universities. A prime example of this is the construction management program at the University of Arkansas at Little Rock led by Professor Hank Bray. Local contractors renovate classrooms, provide scholarships and internships, and teach classes, all with the goal of building the employee base.

If the problem of labor shortages is not severe enough, the likely result of these shortages will be an acceleration of technological progress that will result in job losses. Ironically, labor shortages will result in fewer jobs in some areas as technology replaces labor.

Port workers realized this and recently proposed a moratorium on new technologies as part of contract negotiations. We already have autonomous trucks on the roads due to a lack of truck drivers. My former Big 4 accounting firm is spending millions developing AI applications, and it’s not alone. Artificial intelligence-based tools will audit huge databases and detect anomalies that most auditors will miss. These tools will examine vast amounts of tax data that are beyond human ability to process, and then construct tax strategies that a human may or may not identify, and will certainly do so faster. To be clear, accountants are not going away. There will be fewer of them (there will be a labor problem) and they will need skills that go far beyond today’s standards.

Building the pipeline of future workers must start in schools. Those who fail to recognize this will find themselves at a disadvantage as labor shortages increase. Employees must engage in lifelong learning to stay up to date with the rapidly changing technologies that will impact their jobs.

Jerry Damerow is cabinet co-chair of the UA Little Rock Centennial Campaign and a member of the STEM Leadership Council at UA Little Rock Donaghey College. He is a member and former director of the Rotary Club of Little Rock, former board chair of the EAST Initiative, former board chair of CareLink, and former board member of Pfeifer Camp.