The global talent shortage is now undeniable to employers
Few challenges are becoming more clear to corporate leaders than the global talent shortage. Data cited in Envoy INSIGHTS' Global Talent Imperative shows that skills gaps and labor supply deficits are reaching unprecedented levels that require attention.
A report from McKinsey found that there will be a shortage of over 40 million high-skilled workers worldwide by 2020, and a 2019 study from Korn Ferry predicts that in just another ten years, the talent deficit will grow to 85.2 million workers. According to the report, companies worldwide could stand to lose $8.4 trillion in revenue by the year 2030. Their loss in revenue would be due to the undersupply of skilled workers. If Korn Ferry's prediction comes to fruition, global productivity, innovation and economic well-being may be affected.
Driving these shortages are a variety of factors, including low unemployment rates and changing immigration policies
Tightening labor markets
As developing countries experience economic growth, unemployment rates are decreasing. According to Deloitte, economies in Japan, Germany, China and the United Kingdom saw their unemployment levels drop to record lows over the past few years.
The U.S. is also in the midst of an extremely tight labor market. For over a year, the amount of unfilled jobs has exceeded the number of citizens seeking work. In fact, at the end of April 2019, there were 7.4 million unfilled jobs and only 5.8 million U.S citizens seeking work, the largest margin on record. Korn Ferry found that the U.S. could face a shortage of more than 6.5 million skilled workers by 2030. Companies may lose a collective $1.7 trillion in missed revenue.
Growing skills gaps
Technological transformation and automation have changed employer needs, eliminating certain low-skilled positions and increasing the demand for technical skills. According to the Smithsonian STEM Imperative, there were a projected 2.4 million unfilled STEM jobs in the U.S. at the...