Professional Documents
Culture Documents
Skilled Workers
September 2013
Objective
SKILLS IN SHORTAGE
Most recruiters consider the absence of technical skills as the main driver for skills
shortage across a myriad of industries
Job
roles
aected
by
labor
shortage2012
Against
the
milieu
of
the
slow-paced
global
economy,
employers
are
experiencing
diculLes
in
lling
vacancies
due
to
lack
of
qualied
and
employable
workers;
as
the
global
economy
is
recovering,
the
labor
market
is
increasingly
Lghtening
with
acute
shortage
in
the
Asia
Pacic
and
the
Americas
region
nt
Finance/Ac
counts
Engineerin
g
There
is
a
signicant
shortage
of
engineers
globally,
which
directly
impacts
the
ability
of
companies
to
invest
and
take
up
projects
There
is
also
a
shortage
of
engineering
leaders
who
can
take
up
management
roles
in
dierent
engineering
elds
IT
According
to
Hays,
a
leading
recruitment
rm,
informaLon
technology
(IT)
skills,
such
as
JAVA,
.NET,
C++,
are
in
scarce
supply
globally
during
201213
The
growing
importance
of
IT
has
resulted
in
the
shortage
of
workers
across
the
bandfrom
CIOs
to
programmers,
and
IT
support
sta
R&D
Procureme
SKILLS IN SHORTAGE
Apart from technical skills, employers believe that skilled labor with adequate soft skills
is also in shortage
Job
roles
aected
by
labor
shortage2012
Companies
across
industries
are
also
facing
challenges
of
shortage
of
labor
with
so`
skills
such
as
communicaLon,
language,
work
ethics,
and
leadership
Language
Workers
procient
and
uent
in
English
are
scarce
globally
especially
in
countries
where
English
is
not
the
naLve
language
Apart
from
English,
companies
look
for
individuals
who
can
speak
the
naLve
language
of
the
country
of
operaLon;
this
has
parLcularly
become
important
with
the
global
movement
of
talent
aCon
Team Wor
Leadership
Employers
nd
it
most
dicult
to
ll
leadership
roles,
such
as
CEOs,
CIOs,
and
Directors;
this
is
especially
true
for
technical
leadership
jobs
in
developing
countries
Communic
Work Ethic
SKILLS IN SHORTAGE
Secondary industries face the brunt of this shortage; the key skills in shortage globally
are skilled trade workers, engineers, technicians, and sales representatives
Intensity
and
Geographic
Spread
of
Key
Skills
that
are
in
Shortage2012
TerCary
Industries
High
Secondary
Industries
Skilled
Trade
Workers
IT
Professional
Services
Financial
Services
Travel
&TransportaCon
Intensity of Shortage
Engineers
Technicians
Manufacturing
Sales
RepresentaLves
ConstrucCon
Drivers
AdministraLve
&
Support
Sta
AutomoCve
IT
Sta
Laborers
Managers
&
ExecuLves
AccounLng
&
Finance
Low
Low
High-skilled
Workers
Medium-skilled
Workers
Low-skilled
Workers
Notes:
All Industries
1) Impact of skill shortage on the primary industry has not been assessed, due to the lack of a dened entry level skill set
High
In Americas and Europe, skill shortages of engineers and skilled trade workers is
impacting the manufacturing industry severely
Region
Key
Countries
Aected
Main
Industries
Impacted
Americas
Brazil
US
1. Technicians
2. Skilled
Trade
Workers
3. Engineers
Manufacturing
DescripCon
Americas
Outlook
Skills
shortage
in
the
Americas
is
likely
to
become
severe
by
201516
Shortage
in
the
US
is
expected
to
further
worsen
by
2015
due
to
increasing
re?rements
Countries
such
as
Brazil
will
need
to
invest
in
technical
training
ins?tutes
to
cope
with
the
expected
increase
in
labor
shortage
Europe
Bulgaria
Romania
Germany
Manufacturing
1. Engineers
2. Skilled
Trade
Workers
3. Management
Execu?ves
Manufacturing
1. Engineers
2. Skilled
Trade
Workers
3. Sales
Representa?ves
Manufacturing
Europe Outlook
Source: Talent Shortage Survey Results, Manpower Group (2012); Skills Gap in US Manufacturing, DeloiYe and Manufacturing Ins?tute (2011)
Oil and gas, mining, construction, and IT industries are facing severe skill shortages in
Asia-Pacific and Africa
Region
Key
Countries
Aected
Main
Industries
Impacted
Asia-Pacic
Japan
Australia
India
Manufacturing
IT
DescripCon
1. Technicians
2. Skilled
Trade
Workers
3. Engineers
1. Skilled
Trade
Workers
2. Engineers
3. Sales
Representa?ves
1. IT
Sta
2. Marke?ng
Sta
3. Engineers
Asia-Pacic Outlook
Asia
will
require
a
large
pool
of
skilled
workers
and
the
skill
shortage
gap
is
expected
to
widen
?ll
2015-16
This
will
be
driven
by
strong
growth
in
developing
economies,
warran?ng
the
need
for
skilled
workers;
further,
aging
popula?on
will
also
contribute
to
the
talent
shortage,
along
with
low
employability
of
graduates
Notes:
Skill shortage in Africa is equally distributed across countries, with a majority of them facing a scarcity of quality workers
As African economies expand, the demand for skilled labor is expected to increase and widen the skill gap
The skill gap is mostly aYributed to the frail educa?on system and inadequate technical training in the region
According to a survey conducted by the Na?onal Employers Federa?on in 2010, 96% employers in Namibia agreed that the country had a shortage of skilled labor
The shortage of skilled workforce is aec?ng the oil & gas sector in East African countries, such as Uganda, Tanzania, and Kenya
According
to
the
2011
IT
Web-JCSE
Skills
Survey,
an
adverse
impact
of
the
shortage
of
informa?on
and
communica?ons
technology
(ICT)
skills
was
reported
by
66%
of
companies
across
industries
in
Africa
Outlook for labor availability in Africa is bleak ?ll 201516, and companies will have to resort to in-house training and expat recruitment in order to ll vacancies
1) Skill shortage in Africa has not been assessed on the same parameters as other regions, due to lack of adequate informa?on
Source: Talent Shortage Survey Results, Manpower Group (2012); East Africa Skill Shortages, The Africa Report (October 2012)
Africa
INDUSTRY SPEAK
Industry Speak
As
the
global
recovery
gathers
pace,
cul=va=ng
future
talent
and
allevia=ng
the
shortage
of
skilled
workers
is
becoming
vital
to
ensure
economic
growth.
With
unemployment
high
around
the
world,
migra=on
is
an
emo=ve
subject
but
strategic
migra=on
will
be
necessary
to
create
a
global
workforce
and
alleviate
the
current
shortage.
Countries
should
be
developing
policies,
which
facilitate
posi=ve
migra=on
to
fuel
economic
growth
through
providing
skilled
workers
where
they
are
needed,
rather
than
crea=ng
barriers
to
immigra=on.
Jeery
A.
Joerres,
Chief
ExecuLve
Ocer,
Manpower
Group
(2010)
The
Hays
Global
Skills
Index
and
report
illustrates
a
major
paradox
in
the
worlds
skilled
labor
markets.
Many
countries
are
suering
chronically
high
levels
of
unemployment,
yet
employers
are
struggling
to
nd
enough
skilled
individuals
to
ll
the
posts
available.
Alistair
Cox,
Chief
ExecuLve
Ocer,
Hays
(2012)
Increasing
talent
shortage
in
Asia
Pacic
could
harm
organiza=ons'
innova=on
eorts
as
CIOs
struggle
to
adapt
to
ongoing
technological
change.
Half
of
employers
in
the
region
have
problems
with
skills
shortages.
IDC
Report
on
Growth
of
IT
in
Asia
Pacic
(November
2012)
As
we
move
further
into
recovery
and
business
plan
for
growth,
the
demand
for
people
with
high-quality
skills
and
qualica=ons
will
intensify.
In
the
future,
people
with
qualica=ons
in
science
and
math
will
be
par=cularly
sought
aQer,
and
rms
say
it
is
already
hard
to
nd
people
with
the
right
technical
or
engineering
skills.
Richard
Lambert,
Director
General,
ConfederaLon
of
BriLsh
Industry
(2010)
The
success
of
any
na=onal
or
business
model
for
compe==veness
in
the
future
will
be
placed
less
on
capital
and
much
more
on
talent.
We
could
say
that
the
world
is
moving
from
capitalism
to
talen=sm.
Talent
grows
businesses
and
economies:
understanding
and
harnessing
talent
mobility
is
now
more
cri=cal
than
ever.
The
talent
crisis
points
out
serious
imbalances
in
human
capital
markets.
On
one
side,
there
are
talent
shortages.
On
the
other,
high
unemployment
rates
and
employability
challenges
slow
down
economies
and
threaten
future
growth
across
the
globe.
The
new
Millennial
genera=on
is
calling
for
a
change.
At
the
same
=me,
talent
is
landing
at
the
top
of
CEOs
agendas.
Klaus
Schwab,
Founder
and
ExecuLve
Chairman,
World
Economic
Forum
(2011)
Concerns
about
nding
sucient
skilled
employees
in
technical
and
engineering
job
func=ons
is
likely
to
grow
in
the
future.
EIU
Survey
on
Skills
Gap
(2012)
"Foreign
direct
investment
(FDI),
and
the
projected
increase
in
FDI
into
Africa,
will
mop
up
talent.
The
demand
for
talent
in
Africa
is
going
to
outstrip
supply.
As
a
result
of
the
higher
demand
for
talent,
the
price
of
talent
is
going
to
go
up,
and
it
is
going
to
con=nue
to
go
up,
for
as
long
as
there
is
a
skills
shortage.Ray
Harraway,
Tax
Human
Capital
Director
at
Ernst
&
Young
Africa
(March
2012)
Notes:
Source: Manpower Suggests Strategic Migra?on, Promo?ng Skilled Trades Key to Plugging Talent Gap, Manpower Group Press Release (August 2010)
Mismatch
between
skill
demanded
and
supplied
Aging PopulaCon
Demand
Outpacing
Supply
Low
employability
of
Graduates
Global
Shortage
of
Skilled
Workers
Industrial
sectors
such
as
construcLon,
manufacturing,
and
mining
have
been
parLcularly
aected
Paradox
for
policy
makers
high
unemployment
despite
shortage
of
skilled
labor
Impact
on
Labor
Shortage:
Very
High
High
Medium
Low
Very
Low
9
Aging population worldwide is having a severe impact on the size of labor force across
the globe
Aging PopulaCon
Aging popula?on is aec?ng the labor availability in many countries, and this is likely to con?nue over the next decades
According
to
a
UN
Report
published
in
2012,
by
2050,
the
popula?on
aged
60
and
above
will
outnumber
the
popula?on
aged
15
and
below
Aging popula?on and increasing re?rements are aec?ng many developed countries including the US, the UK, and Japan
There
are
approximately
about
810
million
individuals
aged
above
60
as
of
2012
and
this
is
projected
to
increase
over
2
billion
by
2050
As
of
2012,
one
out
of
every
nine
individual
is
aged
60
years
or
above,
while
by
2050,
one
out
of
every
ve
is
likely
to
be
in
that
age
group
In
2012,
the
propor?on
of
older
individuals
(aged
above
60)
who
are
economically
ac?ve
is
higher
in
the
less
developed
regions
(50%
among
men
and
22%
among
women)
than
in
the
more
developed
regions
(26%
among
men
and
15%
among
women)
Older
individuals
in
the
less
developed
regions
work
un?l
more
advanced
ages
(above
60)
largely
due
to
the
limited
coverage
of
social
security
schemes,
as
well
as
low
pension
values
received
by
those
who
are
covered
Key
Factors
Impac?ng
Shortage
58.6%
55.7%
Africa
67.4%
66.2%
63.6%
57.9%
Asia
Europe
2012
66.6%
62.2%
60.3%
North America
65.7%
64.3%
62.9%
63.0%
67.9%
67.8%
63.4%
Oceania
Source: UN
Source: Ageing in the Twenty-rst Century: A Celebra?on and a Challenge, UNFPA (October 2012); Department of Educa?on, Australia (2012)
10
Low employability of graduates and demand outpacing supply are the key factors
driving the global shortage of skilled workers
One
of
the
main
drivers
of
skill
shortage
globally
is
the
lack
of
a
link
between
what
is
taught
in
schools
and
what
is
needed
by
at
the
job
front,
which
leads
to
high
levels
of
unemployment
In
many
countries
the
educa?on
system
only
provides
theore?cal
knowledge
and
students
are
onen
not
equipped
with
requisite
job
skills
Further,
the
curricula
is
onen
out-dated,
and
students
have
no
present
day
relevant
knowledge;
this
is
par?cularly
true
for
technical
professions
and
low
quality
of
teaching
is
also
prevalent
in
many
ins?tutes
The lack of employability skills also contributes to the diculty faced by employers to ll vacancies
In
many
cases
the
labor
shortage
experienced
in
a
eld
is
not
due
to
the
shortage
of
adequate
personnel,
but
due
to
their
low
quality
and
employability;
employers
nd
candidates
lacking
generic
skills
such
as
communica?on,
team
work,
and
?meliness
Employability
of
fresh
graduates
is
a
major
concern
in
certain
Asian
and
African
countries;
according
to
an
annual
employers
survey
conducted
by
Manpower
Group
in
2012,
28%
of
employers
in
Asia
stated
that
low
employability
is
a
problem
within
the
region
Key
Factors
Impac?ng
Shortage
40%
2006
41%
2007
31%
30%
31%
34%
34%
2008
2009
2010
2011
2012
Demand
Outpacing
Supply
Notes:
In many parts of the world, the demand for skilled labor is growing at a rate, which is outpacing the labor supply growth
Increasing demand is based on increased investments in projects and growth in various sectors
IT,
oil
and
gas,
and
mining
industries
in
Australia
are
witnessing
high
levels
of
growth
and
in
turn
are
demanding
skilled
labor;
the
growth
of
the
labor
market
however,
is
not
able
to
match
the
total
demand
According
to
the
American
Society
of
Engineering
Educa?on,
as
of
2012,
the
US
needs
to
graduate
10,000
addi?onal
engineers
every
year
to
keep
pace
with
the
demand
1) This has been sourced from a survey conducted by ManpowerGroup in 2012 with 38,000 employers
11
Low
Employability
of
Graduates
SCENARIO 2020
45
High-skilled
Workers
Medium-skilled
Workers
Low-skilled
Workers
Global
Shortage
of
Skilled
Workers
in
2020
85
Million
-94
Mostly high- and medium-skilled workers are in short supply globally as of 2012
According to McKinsey Global Ins?tute, by 2020, there will be a 13% shortage of college-educated or high-skilled individuals globally
Shortage of high-skilled workers will be most prevalent in developing economies, with about 50% of the shortage in China alone, in 2020
The expected shortage of medium-skilled workers (secondary educated) is about 15% by 2020
Most of this shortage is expected in developing and labor-intensive economies of South Asia and Africa
However, by 2020, there is likely to be a surplus of low-skilled workers, largely in the developing countries
Most of the excess supply of low-skilled workers is expected in India and other developing countries
While
the
shortage
of
skilled
manpower
in
developing
countries
can
be
overcome
by
improving
the
educa?on
system,
the
problem
in
developed
na?ons
will
be
more
dicult
to
tackleas
it
is
mostly
not
the
educa?on,
but
the
demographics
that
leads
to
the
shortage
Source: The World at Work: Jobs, Pay and Skills for 3.5 billion people, Mc Kinsey Global Ins?tute (June 2012)
12
STEPS AHEAD ?
The availability of skilled labor in some of the prominent countries is unlikely to change
drastically in the decade ending in 2020
Availability
of
Skilled
Labor2010
India
US
150
Brazil
100
Japan
Germany
50
Kenya
US
150
Brazil
100
Japan
Kenya
50
UK
Germany
UK
Romania
India
500
10
15
20
25
%
Of
Labor
Force
with
College
EducaCon
Australia
30
Australia
Romania
0
5
10
15
20
25
30
500
China
800
China
800
Although
the
size
of
labor
force
and
level
of
educa=on
are
set
to
improve,
countries
are
not
likely
to
undergo
a
major
systemic
change
This
possible
scenario
in
2020,
and
its
lack
of
progress
from
the
present
scenario,
poses
a
serious
ques=on
for
the
decision
makers
today
regarding
the
steps
that
need
to
be
taken
to
tackle
this
shortage
over
the
next
decade
13
SOLUTIONS ADOPTED
Measures
taken
by
the
UK
Government
Measures
taken
by
the
Uganda
Government
Measures
taken
by
the
German
Government
The UK has a severe shortage of skilled labor, primarily engineers and technicians
In May 2012, the UK government approved opening of 15 University Technical Colleges (UTCs) across the country during 201315
UTCs
are
designed
to
meet
the
shorqall
of
engineers
and
technicians
by
oering
students
a
high-quality,
technical
educa?on,
which
can
lead
to
appren?ceships
and
higher
degrees
Once the 15 UTCs are set up, the UK will have a na?onal network of 34 UTCs
In
October
2012,
the
UK
government
announced
a
scholarship
program
to
aYract
top
graduates
to
train
as
teachers
for
computer
science
programs
The ini?a?ve is aimed at improving the standard of educa?on and thus, crea?ng a beYer pool of skilled labor
The
program
is
backed
by
companies
such
as
Microson,
Facebook,
Bri?sh
Telecom,
and
IBM
to
reduce
the
gap
between
the
educa?on
and
industry
requirements
To
eec?vely
u?lize
its
oil
resources,
Ugandan
government
decided
to
develop
resources
with
strong
background
in
oil
and
gas
within
the
country
The government sent people abroad for training courses who are now a part of the team leading their oil sector every year
Till 2012, the government had sent 30 people to Trinidad & Tobago to study oil and petroleum related courses
The German government is taking steps to liberalize immigra?on laws to make it easier for non-EU workers to nd employment in the country
This
is
being
done
to
overcome
severe
skill
shortages
in
engineering,
train-driving,
electronics,
and
plumbing
jobs;
according
to
OECD,
the
country
will
face
a
shortage
of
5.4
million
workers
with
voca?onal
and
ter?ary
educa?on
by
2025
The
German
Chancellors
cabinet
has
passed
new
immigra?on
rules
in
February
2013,
to
reduce
red-tapism,
in
order
to
help
workers
get
their
qualica?ons
recognized
easily
Source: Department of Educa?on, UK, Immigra?on rules aim to ease skill shortage in Germany, Business Day Live (February 2013)
14
Governments are focusing on education, training and development, and policy related
changes to tackle the talent shortage
SOLUTIONS ADOPTED
Industry players are adopting innovative strategies to tackle the talent shortage across a
myriad of industries
Oil
and
Gas,
and
Mining
ConstrucCon
IT
Case
exampleIBM
(Global)
Measures
Taken
by
Companies
Manufacturing
Case
exampleMazak
(US)
This
was
done
to
bridge
the
skill
demand
and
supply
gap
in
the
IT
industry
globally,
especially
in
the
eld
of
big
data
and
analy?cs
Apart
from
its
own
training
ini?a?ves,
the
company
has
also
collaborated
with
local
community
colleges
to
oer
a
two-year
program
for
appren?ce
engineers
and
machinists
Source: Namibia Ins?tute of Mining Technology; Queensland LNG projects will need imported labour, Reuters (October 2011); Department of Educa?on, UK
15
SOLUTIONS ADOPTED
Your Checklist
Below
is
a
list
of
queries
that
senior
execuLves,
decision
makers,
and
managers
globally
should
reect
on
regarding
the
risk
of
shortage
of
skilled
labor
Are
your
future
talent
needs
impacted
by
the
shortages
experienced
in
the
world?
Do
you
operate
in
geographies
where
there
is
a
skill
shortage?
Do
the
regulaCons
in
the
geographies
allow
you
to
hire
foreign
workers?
What
impact
will
skill
shortage
have
on
your
top
line?
What
are
the
various
steps
your
compeCtors
and
the
industry
are
taking
in
this
regard?
Are you taking the necessary steps to insulate your company from this risk in the long term?
Contact
our
strategy
team
to
take
this
forward
and
know
about
our
various
oerings
in
this
space!
info@thesmartcube.com
16
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