Massive managerial shortage on the horizon in the wake of layoffs
More than 170 jobs in the United States are projected to face a talent shortage by 2032, with the country expected to fall short of 5.25 million workers with postsecondary education, according to a new report.
The Georgetown University Centre on Education and the Workforce (CEW) recently examined 561 U.S. occupations to assess how shortages of postsecondary graduates are affecting these roles.
"Without massive and immediate increases in educational attainment, 171 occupations of the 561 we analysed will face skills shortages through 2032," said Nicole Smith, lead author and chief economist at CEW, in a statement.
"In addition, we identified nine occupations that warrant further discussion because of the size of expected shortfalls, the prominence of the occupations, or the social and economic needs they fill."
The findings come as the report revealed that the US will need an additional 5.25 million workers with postsecondary education through 2032.
According to the report, 18.4 million experienced workers with postsecondary education are retiring between 2024 and 2032. This is far greater than the 13.8 million younger workers who will enter the labour market with postsecondary educational qualifications.
Nine occupations are expected to be particularly hit hard by the shortages, such as managers, teachers, and nurses, according to the study.
"Both teacher and nursing shortages are pressing concerns with far-reaching implications for the nation's education and healthcare systems. Addressing these shortages must be a priority," Smith said.
Managerial shortage looming
Manager jobs have emerged as the strongest-hit occupation by the shortage, according to the study, which is expecting a 2.9-million gap through 2032.
This shortage comes in the wake of massive layoffs among managers recently as organisations attempt to streamline their firms.
Google was recently reported to have cut 35% of managerial positions that handle small teams.
Findings from the 2025 Korn Ferry Workforce survey also found that 41% of employees belong to organisations that have cut management layers.
Iktimal Daneshvar, EMEA vice president for RPO at Korn Ferry, said in an insight that managers "have been an easy target" for layoffs because they are well-compensated enough that axing them brings corporate savings.
But managerial cuts also come as organisations hold back hiring on entry-level roles, according to Korn Ferry, which results in fewer talent being developed as managers.
"That leads to a talent war," said HR expert Ron Porter, senior partner at Korn Ferry, in an insight.
Addressing the talent shortage
Increasing the labour force participation rate is one of the suggestions of the CEW study to address the skills shortage.
This includes subsidising childcare policies to boost female labour force participation, it said.
"Better wages, benefits, and career opportunities can attract discouraged workers, while phased retirement options and workplace accommodations can encourage older workers to extend their employment," the study stated.
"Additionally, targeted efforts to engage discouraged workers, combined with technological advancements like remote work and online training, can significantly boost the LFPR, fostering economic growth and workforce resilience."
The study also suggested the following:
- Address persistent attainment gaps by race/ethnicity and socioeconomic status
- Study the expansion of skills-based hiring to improve its effectiveness
- Invest in education and training for all workers who need to update their skills
- Use technology to increase worker productivity
- Expand visa programmes to prioritise immigrants with in-demand skills in jobs with more pronounced shortages
"Skills shortages present an opportunity for millions of workers, particularly those from low-income households and marginalised racial/ethnic groups, to gain better access to economic opportunity, and for American industries to connect with enormous untapped talent," said co-author and CEW Director Jeff Strohl, in a statement.
"The transition to a majority-minority population has already occurred among American youth. As a result, addressing the skills gap will require teaching and counselling strategies that are adaptable and responsive to the evolving socioeconomic and racial/ethnic demographics of our classrooms."
