Why Half of Manufacturing Jobs May Go Unfilled—And What You Can Do About It

Key Takeaway

The 2024 Deloitte & The Manufacturing Institute report warns that manufacturing may face 1.9 million unfilled jobs by 2033, a shortage already affecting productivity and growth. Talent supply isn't keeping up, skills are evolving fast, and employee engagement is declining, creating both a skills gap and an applicant gap.

The solution: adopt a skills-based training strategy, prioritize digital and soft skills, and use structured training to attract and retain talent. Find practical steps below to get ahead of the shortage.

A Workforce Crisis Already at Our Doorstep

The numbers are clear and alarming. According to the 2024 Deloitte & The Manufacturing Institute report, between 2024 and 2033, the manufacturing sector may need to fill up to 3.8 million jobs, but if the current talent shortage continues, 1.9 million of those positions could remain open.

This problem isn’t in the future. It's a workforce crisis that's already impacting productivity, innovation, and long-term growth in manufacturing, utilities, and other industrial sectors. As baby boomers retire, skill requirements shift, and competition for qualified candidates grows fiercer, organizations must rethink how they recruit, train, and retain talent.

So, what’s behind this shortage, and more importantly, what can you do about it?

The Root Causes Behind the Growing Skills Gap

1. Industry Growth Is Outpacing Talent Supply

From production floors to control rooms, demand for workers of every skill level is accelerating. Attracting and retaining talent is the primary business challenge indicated by over 65% of respondents in the 2024 National Association of Manufacturers’ outlook survey.

This trend lines up with what we hear from our customers: across utilities and industrial facilities, roles, from entry-level to specialized technicians and engineers, remain vacant longer than expected, slowing growth and hampering operational readiness.

2. Skills Are Evolving Fast

According to the World Economic Forum, 40% of skills required in advanced manufacturing will change within the next five years. That includes everything from traditional hands-on expertise to digital fluency and soft skills like problem-solving and adaptability.

The same Deloitte & Manufacturing Institute study shows that over the past five years, demand for specialized skills, like simulation and simulation-software expertise, has jumped by about 75%.

This reflects what many clients report: with utilities adopting technologies from digital controls to automated safety monitoring, the need for competent, highly trained employees is accelerating.

3. Engagement and Retention Are at Risk

The study doesn’t just highlight a skills gap, it calls out an applicant gap. Many skilled jobs remain open simply because companies cannot find qualified or willing candidates.

Gallup data shows that manufacturing workers are among the least engaged across industries. Disengaged employees are nearly twice as likely to leave, fueling high turnover and heightening workforce shortages.

What Leading Companies Are Doing Differently

Organizations that take a skills-based approach (focusing on what people can do, not just job titles) are seeing results. According to Deloitte’s Workforce Experience research:

• They’re 107% more effective at placing talent
• 98% retain high performers
• 52% drive innovation
• 63% consistently meet business goals

These companies don’t just train, they invest in workforce development as a long-term strategy.

What You Can Do Now to Avoid the Shortfall

Explore these practical strategies to bridge the talent gap and future-proof your workforce:

Build a Skills-Based Training Strategy

Don’t rely solely on job titles. Use job task analysis to identify the exact skills required, then map those skills to targeted training modules. This process ensures every team member, from entry-level hires to experienced technicians, is equipped with the right capabilities.

Prioritize Soft Skills and Digital Fluency

Technical know-how isn’t enough. Workers must also be able to interpret data, communicate effectively, and adapt to tools like AI-driven systems or predictive maintenance software.

Use Training as a Recruitment and Retention Tool

When employees see a clear path to growth, they stay. According to LinkedIn, 94% of employees would stay longer at companies that invest in their development. Use structured onboarding, mentoring, and progression planning to keep talent engaged.

Leverage Online and On-Demand Learning

Keeping pace with evolving roles requires responsive and relevant training. Online industrial skills training makes it easy to scale learning across job sites, shifts, and regions while ensuring consistency and compliance.

How HSI Can Help

At HSI, we partner with manufacturing and industrial organizations to:

• Deliver online, mobile-ready training for technical and safety-critical roles
• Develop job-specific training programs using JTAs and SME input
• Build progression plans that support career development and retention
• Empower employers to shift toward a future-focused, skills-based approach

The skills gap isn’t going away, but you don’t have to be caught off guard. With a proactive training strategy in place, you can future-proof your workforce, keep operations running smoothly, and retain the high performers your business depends on.