The Journey from Auckland to Dublin

During my recent travels from Auckland, New Zealand, to Dublin, Ireland, I was struck by the complexity of modern air travel. A flight attendant gracefully navigated the cramped aisles of the 747, performing her duties with a radiant smile despite the challenges she faced throughout the flight. The intricacies of this performance became even more apparent to me after nearly three years away from flying. The moment I landed in Dublin, I was greeted by a city vibrant with energy—a stark contrast to Auckland, which now feels eerily deserted.

Despite the chaos, my stopover in London revealed a bustling atmosphere, with minimal commercial vacancies despite the negative news surrounding the industry. However, my journey was challenging, filled with delays, lost luggage, and lengthy layovers—each airport I visited was significantly understaffed.

After an exhausting trip, I became familiar with airline staff in Dublin as I attempted to retrieve my missing suitcase from Heathrow. It was here that I witnessed firsthand the effects of the Great Resignation—staff members quitting on the spot, expressing their frustration with poor working conditions and customer harassment.

Labor Shortages: An International Perspective

Currently, the aviation sector faces a potential shortfall of over 100,000 workers globally. For instance, Auckland Airport, a small facility with just 65 gates, has announced 3,000 job openings. Even if these positions are filled soon, many new hires will lack the necessary experience for an industry that operates continuously.

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Despite predictions that automation would eliminate human jobs, we instead face a paradox: a global labor shortage alongside low unemployment in developed nations. This contradiction highlights the need for businesses to adapt and prepare for both immediate labor shortages and future technological changes.

The OECD's Insights on Labor Shortages

The OECD's recent report, "The Post Covid-19 Rise in Labor Shortages," provides several key findings:

1. The Great Resignation: Many individuals are leaving low-paying jobs, leading to increased vacancy rates, particularly in manufacturing and hospitality.
2. Changing Worker Expectations: Workers are no longer willing to accept poor pay and challenging working conditions.
3. Rising Job Vacancies: Job vacancies have surged, especially in sectors heavily reliant on in-person contact.

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The OECD highlights that the departure of women and older workers from the labor force does not account for the rise in labor shortages. Instead, the high quit rates correlate strongly with low wages, indicating that many workers were already considering leaving their jobs before the pandemic.

The Role of Automation and Economic Shifts

The concept of "Bullshit Jobs," introduced by anthropologist David Graeber, suggests that many roles in the modern economy do not contribute meaningfully to society. The rise of these positions has created an imbalance, as essential jobs in sectors like education and healthcare remain underfunded and undervalued.

Another contributing factor to the labor crisis is the aging workforce and declining birth rates, trends that have been termed "Japanification." Countries like New Zealand are experiencing this phenomenon firsthand, as their populations age and the youth demographic dwindles.

Moreover, governments can sometimes manipulate data to present a favorable image of employment statistics, obscuring the reality of the labor market.

Conclusion: The Future of Work

The notion that automation will completely replace human labor is simplistic. Instead, we may be entering an era where traditional skills and trades become more valuable as society recognizes the importance of essential work. The labor shortages we are witnessing are not due to a lack of available workers but rather a reflection of the systemic issues within the job market.

In the upcoming Part 2, we will delve deeper into the evolving trends in the labor market and the implications for the future workforce.

About Andrew Gillick

Andrew specializes in creating comprehensive technical and API documentation for Fintech startups, helping them attract investors and customers while easing developers' workloads. For more information on collaboration, visit www.andrewgillick.com or subscribe to his newsletter for insights into a cashless future.