Chronic skills shortages worldwide, but high unemployment persists

HRM 19 Nov 2012

The world is facing an economic paradox as many countries are facing high unemployment, yet still suffering from chronic skill shortages, says a report by Hays.

According to the Hays Global Skills Index, the struggle for skilled individuals to fill positions is a result of labour market inflexibility, global competition for talent driving up salaries, and poor or inadequate education and training.

Among the 27 key economies that the Index covered, 16 countries are currently feeling the effects from a tightened labour market despite the global economic slowdown. This causes wage inflation, leaving many vital roles vacant and limiting economic growth.

The two countries affected most are Germany and the US, where there are considerable skill shortages despite high unemployment levels.

The report proposed several measures to combat the problem. The first is that governments focus on the skills their economies lack and take appropriate measures to attract these people through immigration. This may require an overhaul of existing work visa arrangements. Secondly, employers should be offered fiscal incentives to increase their provision of relevant training. Lastly, governments should work with employers and educational authorities to implement initiatives for young people to acquire skills needed for both the country and at an international level.

Alistair Cox, Chief Executive of Hays said: “Many countries are suffering chronically high levels of unemployment, yet employers are struggling to find enough skilled individuals to fill the posts available.  Ironically, the world is short of the very skills that would help stimulate economic growth and thereby create opportunities for the unemployed.

Our proposals would help create more jobs, stimulate economic growth and potentially provide employment opportunities for millions.”



Leave your comment
Start a new discussion

HRM Asia forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Post a Comment
HRM Asia welcomes your contribution. Your IP address is recorded in the event of a complaint.
Name *
Email *
(required, but will not display)
Comment *
Please enter in the numbers in the box left.
You are about to submit your comment. Is it:
  • Professional
  • In your own name or pseudonym, not impersonating someone else
  • Free from rude language
  • Free from advertising
  • If you prefer not to post but are still keen to get your viewpoint across, you can always e-mail the editor.
  • 15 Apr | Starwood Asia Pacific Hotels & Resorts Pte.Ltd. | Singapore
    A Leading Hotel Chain Group
    11 Apr | Talent Insight Executive Search | Singapore
    Recognised globally as one of the leading organisations in the industrial and commerce space, this dynamic US multinational is poised at an exciting s ...
    15 Apr | Kerry Consulting | Singapore
    Organisational leadership in the 21st century
    Sherman Ong, Chief Development Officer, National Cancer Centre, shares with us the core competencies required in a leader today
    Spearheading corporate democracy @ Facebook
    Tailor-make your talent strategy: Top tips from Carlsberg
    Standard Chartered : Where L&D is always evolving
    Performance Leadership Pte Ltd | info@performance.sg
    Increase productivity and getting funding from Health Promotion Board, through a series of General Health and Mental Wellness programmes.
    Organisational Development Concepts | enquiries@odctraining.com.sg
    The Service Excellence Competency Frame (SVCF) is a competency-based training and assessment framework that equips service professionals with the rele ...
    Performance Leadership Pte Ltd | info@performance.sg
    Lunch, Learn and Bond with your teams, all within 1 hour! Choose from a variety of light-hearted, interesting or thought-provoking topics that appeal ...