Amid election uncertainty, employers face challenges that include a growing skills gap, an increasingly active labor movement, and legal complexity around corporate diversity efforts
WASHINGTON (September 3, 2024) – Littler’s Workplace Policy Institute® (WPI®), the government relations and public policy arm of Littler, the world’s largest employment and labor law practice representing management, has released its 2024 Labor Day Report. The seventh annual report provides insight into 10 critical economic, labor, and employment issues facing businesses this Labor Day, from hiring challenges and the impact of artificial intelligence (AI) to rising union activity, changes in administrative and employment law, and continued headwinds facing corporate diversity initiatives.
Worker shortages remain a persist challenge for U.S. employers, even as labor force participation for prime-age workers continues to increase. There are approximately 1.7 million workers missing from the post-pandemic workforce, the U.S. Chamber of Commerce reports, while data from the Conference Board shows that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
The report also explores how the upcoming U.S. general election may impact labor and employment law across several areas and examines the proliferation of employment-related legislation at the state and local level amid Congressional gridlock. Since last year’s Labor Day Report, more than 275 bills that regulate labor and employment have been enacted at the state level.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” said Shannon Meade, WPI’s executive director. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
The report delves into the 10 issues below and provides practical guidance for corporate executives on the impact to their businesses and workforce management strategies.
- Ongoing worker shortages and the need for upskilling
- AI accelerating workforce transformation
- The Biden administration championing the labor movement
- Rising union activity amidst falling union membership
- Increasing union interest in health and safety
- Major changes to administrative law following the 2024 U.S. Supreme Court term
- Hiring challenges due to immigration policy
- Continued headwinds facing corporate diversity initiatives
- States and localities driving employment law changes
- Uncertainty around November’s general election
In addition to Lotito and Meade, the report was authored by shareholders Jorge Lopez, Bradford Kelley, Alexander MacDonald, Jim Paretti and Alka Ramchandani-Raj; senior counsel Tasneem Zaman; and knowledge management counsel Maureen Lavery.
Click here to view the full report.
The Labor Day Report follows the launch of the Workforce Transformation Coalition earlier this year. Formed by WPI and the National Association of State Chambers, a national organization for executive leadership of state chambers, the Coalition is focused on addressing many of the issues highlighted in the Labor Day Report through advancing comprehensive federal and state policy and programmatic agendas to strengthen workforce competitiveness.
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About Littler WPI
WPI advocates for employers on a global scale. Working closely with businesses and trade associations, WPI serves as a strong voice for employers and their workplaces to navigate real-time changes in employment and labor law, while influencing the legislation of tomorrow. By harnessing Littler’s global depth of knowledge and expansive resources for tracking emerging issues that affect the workplace, WPI brings employers’ interests to the forefront of today’s rapidly evolving regulatory landscape.
