A Trillion Dollar Workforce Deficit

According to a new Korn Ferry analysis, by 2030, there will be more than 85 million unfilled jobs since there aren’t nearly enough competent individuals to fill them. That is roughly the same number as the current population of Germany.

In translation, those 85 million unfilled jobs will result in approximately $8,5 trillion in unrealised revenue.

The only way to solve this issue is for companies and country leaders to prioritise talent strategy as a key priority in their development and re-educate and train the existing workforce, according to Yannick Binvel.

Birth rates and Artificial Intelligence

A large portion of the deficit is due to basic demographics. For decades, Japan and several European countries, for example, have had low birth rates in recent years. In the United States, most baby boomers will have departed the labour market by 2030, yet younger generations will lack the time and expertise to fill many of the high-skilled occupations left behind.

With regular news about how machines and artificial intelligence infiltrate an increasing variety of industries, it may be challenging to recognise the skills shortage. And the analysis suggests that, at least in 2020, Russia and China may have a surplus of talent.

However, the prediction for the future is that by 2030, Russia may face a deficit of up to 6 million people, while China may face a shortage twice as significant. The United States may also face a shortfall of more than 6 million employees. In Japan, Indonesia, and Brazil, the situation may be worse, facing 18 million skilled workers shortages.

The impact of the skills shortage is so severe that the continuing dominance of industry powerhouses is in doubt. For example, the United States is the unchallenged leader in technology, but a talent shortfall could quickly undermine that position. As a result, the United States might lose $162 billion in yearly income unless additional high-tech professionals are found.

Indeed, India has the potential to become the next digital powerhouse; according to the report, the country might have a surplus of more than 1 million high-skilled tech employees by 2030.

Intelligent companies are trying to be one step ahead of the competition by educating talent themselves, fresh out of school, to shape them to their needs.

SGS, on the other hand, has a solution specifically targeted for companies that have issues with:

• Finding and keeping talent
• High operational costs
• Fear of losing control

Our DaaS, Create-your-Department-solution, solves all of these problems, and most importantly, leaves the control in the hands of the client.

Read more about DaaS and how we can help transform your business.

SOURCE: https://www.kornferry.com/insights/this-week-in-leadership/talent-crunch-future-of-work