What is one major consequence of skilled labor shortages on economic growth?

One major consequence of skilled labor shortages on economic growth is that businesses struggle to fill important positions, which can slow down their operations. When companies cannot find enough qualified workers, they may have to limit production or delay projects, leading to lower overall output. This reduced productivity can prevent the economy from growing as quickly as it could. For example, if a technology company lacks skilled software developers, it might not be able to release new products on time, causing it to lose customers to competitors. In the long run, this can slow down innovation and economic progress in the entire industry.