INTRODUCTION
Labour shortage is a significant challenge faced by various industries globally, which arises due to a gap between the requirement of skilled workers in a sector and the available pool of skilled workers (Manea, Virlanuta, & Muntean, 2019). This issue creates a demand-supply imbalance, leading to unfilled job vacancies and hampering growth potential for businesses and the economy. A recent report by the World Economic Forum (WEF) in collaboration with Adecco Group, outlining the top insights and trends of global labour markets, suggests that over 50% of businesses in different countries experience difficulty in finding candidates with the right skills, and approximately 16% of employers fail to find the suitable candidates (Adecco Group, 2023) and the healthcare sector is no exception.

The objective of this report is to analyze the causes of labour shortages, with a focus on the healthcare industry. Yet, it is not limited to this sector alone, and the report aims to explore factors such as restrictive immigration policies, rising economic inactivity, and the skills gap and evaluate how they contribute to the prevalence of labour shortages (Manea et al., 2019). Based on the analysis, the report intends to put forward recommendations to alleviate the issue of labour shortages and improve workforce availability in various industries.

The report aims to investigate the labour shortage phenomenon in the healthcare industry comprehensively, while analysing three significant causes of labour shortages. Finally, the report will propose research-based recommendations for addressing the identified causes. By shedding light on these pivotal aspects, this report shall provide useful insights to policymakers, industry leaders, and educational institutions to combat the pressing issue of labour shortages.


FINDINGS
1.Labour Shortages in the Healthcare Industry

The labour shortage in the healthcare sector is a pressing issue worldwide, with numerous factors contributing to the problem. Increasing demand for healthcare services due to an expanding patient population, coupled with an inadequate number of professional healthcare workers, further strains the system (Manea et al., 2019). This section will critically analyse the key challenges associated with labour shortages in healthcare, focusing on the ageing population, educational bottlenecks in training healthcare professionals, and the high levels of stress and burnout in the industry.

Ageing Population: Bai (2021) noted that the ageing population is a significant contributor to the shortage of healthcare workers. An ageing population leads to a rise in healthcare service demand and a decrease in the workforce as older professionals retire. Adapting the workforce to retain senior employees and attract younger professionals is crucial for providing evidence. However, this presents challenges related to work-life balance, workloads, and professional development opportunities (Manea et al., 2019). Addressing these challenges is crucial for ensuring a sustainable healthcare workforce. Hence, employers ought to adopt tactics that encourage the recruitment of younger professionals and enable the sustenance of older workers' careers, ultimately alleviating the adverse effects of an ageing population on the labour force.

Educational Bottlenecks: These are a significant factor in the shortage of healthcare professionals. Insufficient capacity and resources of educational institutions constrain the number of graduates who can enter the labour market (De Avila, 2019). High tuition fees may deter potential healthcare professionals (Nei et al., 2019), and as such, lowering tuition fees and improving healthcare education resources could potentially increase student enrollment in degree programmes. Addressing educational bottlenecks is crucial for ensuring a consistent supply of qualified healthcare professionals to the industry. Thus, addressing these challenges will enhance the healthcare industry's ability to handle staffing deficiencies.

Work-Related Stress and Burnout: The industry is also confronted with labour shortages as a result of work-related stress and burnout (Dyrbye et al., 2020). Rotenstein et al. (2018) observed that healthcare professionals are highly prone to experiencing burnout due to factors such as extended work hours, understaffing, and heightened patient demands. He also found that stress and burnout have a more significant influence on attrition rates in the healthcare field than in other industries. Employers in the healthcare industry must address the sources of stress and burnout among their workforce to effectively provide an explanation. Hence, prioritising stress and burnout mitigation in the healthcare sector can reduce attrition rates and better manage labour shortages.

The healthcare labour shortage is caused by a confluence of demographic factors, educational and training impediments, and work-related stress and burnout. It is imperative to conduct a thorough analysis of the influence of each contributing element in order to develop efficacious tactics for the recruitment and retention of healthcare professionals. Reducing tuition fees for healthcare degrees, investing in training and development, and prioritising worker well-being are potential strategies to alleviate the current labour crisis in the healthcare industry.

2.Restrictive Immigration Policies

Restrictive immigration policies serve as a considerable barrier to addressing labor shortages across industries, including healthcare. Immigrants have historically played a crucial role in filling workforce gaps when domestic labor pools are inadequate (Taylor & Walmsley, 2023). However, many countries have introduced stringent immigration policies in recent years, thwarting the influx of skilled professionals, including healthcare workers, and curtailing their ability to alleviate workforce shortfalls (Taylor & Walmsley, 2023). To ensure industries, including healthcare, have the labour force they need, policymakers must be aware of the impact of such policies and take steps to mitigate them.

A primary hurdle resulting from restrictive immigration policies is the non-recognition or devaluation of foreign qualifications and credentials (Ortega & Peri, 2019). In numerous countries, foreign-educated professionals must undergo rigorous local certification and licensing processes to practice within the jurisdiction, which can be time-consuming and expensive (Ruhs, 2022). Consequently, skilled professionals may become disillusioned by these challenges and abandon their ambitions of working abroad, causing a further strain on labor shortages.

Rigorous visa regulations and quotas can limit the number of skilled workers granted visas or impose extremely stringent applicant criteria (Chellaraj and Maskus, 2018). These regulations create significant barriers for international talent looking to work in other countries. The resulting restrictions limit the influx of skilled immigrants that are to potentially alleviate existing labour shortages. Therefore, to address long-term labour shortages, countries should consider revising visa policies to allow a larger pool of skilled international talent to contribute to their workforce.

Overall, restrictive immigration policies contribute to labour shortages by presenting barriers for skilled professionals attempting to work in other nations, specifically concerning healthcare workers. Obstacles include the lack of recognition for foreign qualifications, arduous and costly certification procedures, and limiting visa regulations. Through these hindrances, restrictive immigration policies jeopardize the ability of countries to address labour shortages in critical sectors, such as healthcare, by hindering the international mobility of skilled professionals.

3. Rising Economic Inactivity

According to Papachristos (2020) and Manea et al. (2019), the rise in economic inactivity has had a significant impact on labour shortages in sectors such as healthcare. Economic inactivity, referring to people who are not working and are not actively looking for work, is caused by factors such as an ageing population, early retirement trends, and long-term health problems. Kaufmann (2021), posits that a shrinking pool of potential workers has contributed to increased labour market pressure, resulting in numerous unfilled job vacancies. This implies that addressing the factors causing economic inactivity will be critical in resolving labour shortages across industries. To address these shortages, policymakers and industry leaders should focus on identifying and addressing the root causes of economic inactivity, ultimately aiming for a more sustainable workforce.

The ageing population is a significant contributor to the increasing economic inactivity. As people grow older, their probability of retiring rises, leading to a gradual withdrawal from the labour force as stated by Wang (2019). As a result, there is a decrease in the pool of potential employees to occupy job openings as labour supply contracts (Wang, 2019). Furthermore, the  increase in life expectancy means that people are living longer, thereby intensifying the necessity for medical assistance and exacerbating the scarcity of workers in the industry (Bai, 2021). Therefore, while the older populace plays a role in the deficit of labour, it presents a prospect for the healthcare industry to broaden its range of services and conform to the evolving demographic necessities.

The trends of retiring at an early age further worsen the rate of economic inactivity. In the field of healthcare, there is a notable occurrence of elevated work-related stress and difficulties that frequently result in job discontent and employee exhaustion, ultimately compelling individuals to retire prematurely (Brown, 2020; Dyrbye et al., 2020). While taking an early retirement offers relief from job-related pressure, it has a notable impact on the scarcity of workforce in the healthcare sector. In order to address this issue, it is imperative for industry leaders and policymakers to concentrate on establishing a work environment that is more conducive to employee well-being and to tackle the factors that lead to burnout and premature retirement.

An additional element that contributes to the increase in economic inactivity is the predominance of enduring health conditions, such as chronic ailments and long Covid. According to Stothart (2021), these health issues limit the capacity of individuals to engage in work, thereby compounding the scarcity of available labour and intensifying the problem of labour shortages. Nonetheless, tackling enduring health concerns necessitates not solely all-encompassing healthcare policies but also cooperation amongst diverse domains, encompassing healthcare, education, and employment, to guarantee all-inclusive assistance for impacted individuals.

4. The Skills Gap

The disparity between the skills required by employers and those possessed by the available workforce, commonly known as the skills gap, is a crucial factor that contributes to labour shortages in different industries, such as healthcare (Papayannis, 2019). As technology and customer demands evolve rapidly, the need for experts with contemporary and specialised expertise is on the rise. Nonetheless, it is usually observed that the labour force is deficient in the necessary education and credentials to fulfil these demands, thereby exacerbating the scarcity of labour (Van Ark & De Spiegeleire, 2020).

According to Papayannis (2019), rapid technological advancement and the shift towards digitalization have given rise to fresh employment positions that demand modern competencies in various sectors, such as healthcare. He argues this phenomenon has led to a difficulty for employers in locating appropriate candidates, which has worsened the scarcity of labour. On the other hand, scholars in the healthcare field who proficiently employ technological advancements, such as telemedicine and electronic health records, have the potential to offer more streamlined patient care, leading to better healthcare results (Van Ark & De Spiegeleire, 2020; Nei et al., 2019). Therefore, it is imperative for academic experts and policymakers to allocate resources towards enhancing skills and promoting lifelong learning initiatives to overcome the deficiency in expertise and tackle workforce scarcities.

Educational and training inadequacies ultimately worsen the skills disparity, posing supplementary obstacles in tackling workforce scarcities. According to De Avila (2019), it is common for conventional academic programmes to fall short in providing graduates with the industry-specific expertise and abilities necessary for prompt effectiveness in the workforce. It is therefore crucial for sectors such as healthcare to prioritise the development and execution of appropriate instructional and learning programmes to tackle these inadequacies, connect the proficiency disparity, and establish a competent workforce (Nei et al., 2019).

Conclusion

Labour shortages present a significant challenge for several industries, particularly the healthcare sector. In summary. The report analysed three primary factors contributing to labour shortages: restrictive immigration policies, increasing economic inactivity, and the skills gap. These factors, both individually and collectively, contribute to exacerbate workforce shortages in various industries, which can have negative effects on economic growth and stability. The analysis revealed that restrictive immigration policies impede the movement of skilled professionals, reduced economic activity diminishes the available talent pool, and the rapidly evolving skills gap indicates the increasing disparity between industry requirements and workforce competencies. Mitigating labour shortages and ensuring the sustainability of industries and economic prosperity are crucial issues that require immediate attention.

Recommendations

Tackling labour shortages in industries, especially healthcare, a comprehensive strategy is necessary. To start with, enhancing immigration policies is essential to mitigate the negative impacts of stringent regulations that hinder the movement of proficient experts. A feasible approach to attain this objective is to enhance the acknowledgement of foreign credentials. This could involve simplifying the accreditation procedure and creating bilateral agreements for mutual recognition among nations (Kahanec & Careja, 2020). Facilitating the influx of skilled foreign workers is crucial for attracting international talent. This can be achieved by expanding visa quotas and streamlining application procedures, as suggested by Ruhs (2022). Studies suggest that implementing liberal immigration policies can effectively mitigate labour scarcities and foster economic expansion by facilitating the unrestricted movement of skilled individuals across national boundaries (Ortega & Peri, 2019).

Addressing economic inactivity is crucial for promoting workforce participation and alleviating labour shortages. Encouraging later retirement through policies such as increasing the official retirement age or implementing incentive programmes for employees who continue working beyond retirement age can aid in sustaining workforce availability (Wang, 2019). Comprehensive rehabilitation and return-to-work programmes can aid individuals with long-term health issues in reintegrating into the workforce, thereby reducing economic inactivity (Stothart, 2021).

Developing targeted strategies to address the skills gap is essential to ensure that the workforce is adequately prepared to meet the ever-changing demands of the industry. Industry-specific programmes, collaborations between employers and educational institutions, and government-led initiatives are effective strategies for enhancing the skills and knowledge of workers (Nei et al., 2019; De Avila, 2019; Van Ark & De Spiegeleire, 2020). Papayannis (2019) emphasises the importance of implementing strategies to address the skills gap in order to enhance workforce competitiveness and alleviate labour shortages.

Overall, the implementation of these recommendations provides a comprehensive strategy for addressing labour shortages in diverse sectors, such as healthcare, while fostering economic growth and stability.

















For the above write-up, rewrite the reccommendation section following the instructions below

1. subheadings about each recommendations is needed
2. use bullet points clearly show your points and explanation. 
For each recommendation, you must evaluate the ideas: what is the strength, and weaknesses of each recommended idea? Is the idea effective? Why is effective or..?why are you recommending?

are your recommendations directly connected to the problems in the findings? There must be links

it must be linked to the aim of the paper as mentioned in the introduction