Skilled professional workers are in demand around the world

by Ray Clancy on September 30, 2015

Skilled workers are needed around the world as labour markets are approaching crisis point due to the supply struggling to keep pace with demand, according to a new report.

In addition, the war for talent is intensifying and employers are once again willing to pay a premium for hard to find skills, resulting in wage inflation across many areas, says the Hays Global Skills Index 2015, a report by the recruitment firm in collaboration with Oxford Economics.

Skilled-WorkerThe analysis covers professional employment markets across 31 major global economies and says that the tightening of labour markets is particularly severe in countries which have seen stronger growth in the last year, such as the US, the UK and other markets in Northern Europe.

Meanwhile BRICs markets, once the engine of global growth, are facing an economic slowdown which is slackening the demand for skilled workers in those respective countries.

The report suggests that there is a worrying employment gap, the difference between the number of people in work today and the number that would have been employed had labour market participation remained at pre-crisis levels.

Although employment levels are rising, this gap is still equivalent to over 11 million people globally, equivalent to one in 20 of today’s total workforce.

The report also says that the talent shortage, particularly in highly skilled industries, is having an adverse impact on productivity with people being either over or under qualified for their jobs and working longer hours without necessarily improving output.

The challenges employment markets face also highlights that a supportive regulatory environment is required to help businesses grow and create jobs, opening up new opportunities for people.

It concludes that more action is needed by governments not only to steer economies through the recovery but also to enable businesses to access the talent they need to build their workforces of the future.

“The world is generally back in growth mode. However, this has exposed the huge challenges facing global labour markets, with demand for skilled workers outpacing supply, even though many countries still suffer from high overall unemployment rates,” said Hays’ chief executive Alistair Cox. “Businesses and governments must act to address these issues or risk jeopardising future economic growth. Education and training schemes need to be better aligned and tailored to produce sufficient levels of the skilled resources businesses need. However, this will take time to deliver results. In the meantime, regulatory and immigration reform is required as a short term route to enable businesses to access world class talent from outside their domestic markets. Otherwise valuable jobs will continue to go unfilled.”

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