Final answer:
A company can increase its workforce flexibility to prepare for a labor shortage, enabling adaptability in a changing market. Polarization happens when job differences widen, but investing in human capital can add value to the workforce. High-skilled labor demand rises due to globalization and technological progress.
Step-by-step explanation:
To be prepared for a potential labor shortage, a company can increase its workforce flexibility, in order to have employees with multiple skills who can fill requisite areas within the company. Workforce flexibility allows a business to adapt to fluctuations in demand for labor and changes in the market. This concept is vital in a dynamic economic landscape where technological advancements and globalization can shift labor demands significantly. Polarization refers to the practice where the differences between low-end and high-end jobs become greater and the number of people in the middle levels decreases. Investing in human capital by providing additional education and on-the-job training for employees can mitigate some of the adverse effects of polarization by equipping workers with a broader range of skills, making them more valuable in the workforce. This strategy ensures that the supply of high-skilled labor keeps up with demand, especially in an economy that increasingly favors such workers due to globalization and advancements in technology.