The global economy created 40M formal sector jobs in 2006
Employment intentions vary.
Employers in Asia and the Americas are the most upbeat
European employers are more careful
10-15% of European employers plan to increase staff
75-85% plan no changes
Increase Decrease No change Don’t know France Netherl Belgium Italy Germany Austria UK Sweden Ireland Norway Costa R Taiwan China Hong K US Canada Mexico India N Zealand S Africa Australia Argentina Japan Peru Singapore Switzerl Spain 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Employers’ hiring intentions, 2q 2007 Source: Manpower Inc.
Manpower Professional Survey 2006 Of 32,000 employers surveyed in 26 countries and territories, 29% said they would have hired more professional staff if candidates had had the necessary skills. 33% of employers in India said they would have hired more permanent professional staff if they could have found candidates with the right skills .
2008 Manpower Talent Shortage Survey 1. Skilled Manual Trades. 2. Sales Representatives. 3. Technicians. 4. Engineers. 5. Management/Executives. 6. Laborers. 7. Administrative positions. 8. Drivers. 9. Accounting & Finance staff. 10. Machinists/Machine Operators. Total Number of Respondents: 42,585 Employers indicating difficulty filling positions: 31% Employers indicating no difficulty filling positions: 69% Margin of error: +/- 3.9% GLOBAL 31 % of employers worldwide are having difficulty filling positions due to the lack of suitable talent available
2008 Manpower Talent Shortage Survey 1. Technicians. 2. Sales Representative. 3. Management/Executives. 4. Sales Managers. 5. Machinists/Machine operators. 6. Engineers. 7. Production Operators. 8. Skilled Manual Trades. 9. Laborers. 10. Restaurant & Hotel Staff. Total Number of Respondents: 3,900 Employers indicating difficulty filling positions: 15% Employers indicating no difficulty filling positions: 85% Margin of error: +/- 1.6% CHINA 15 % of employers in China are having difficulty filling positions due to the lack of suitable talent available
for every manufacturing job lost, ten service jobs have been added.
1.46 billion service jobs worldwide.
160 million could theoretically be offshored.
Estimated to reach 4.1 million in 2008.
% of jobs
“ As companies shift more sophisticated activities to these (low-cost emerging) markets, they are fighting over a much smaller pool of highly skilled workers to staff these operations. As a result, both labor costs and turnover among highly skilled workers are increasing rapidly, making retention ever more difficult.” Source: Innovation in Emerging Markets: 2007 Annual Study. Deloitte Touche Tohmatsu, January 2007 Image source: Getty images Economic Development
Young professionals with 7 years of working experience, 8.5 m (2003), incl. 1.6 m engineers
600’000 engineering graduates per year
Only 1 out of 10 suitable to work at a multinational firm
Young engineers who would today qualify for work at a multinational company: 160’000
75,000 leaders who can work in global environments will be needed
in 2005 they had only 3,000 to 5,000.
Approximately 3m university graduates per year
Pool of university graduates: 22m (2003)
Only 25% of engineering graduates and 10-15% of other university graduates are suitable for work in the IT sector
Possible labour deficit (IT sector): 500’000 in 2010
Turnover rate: 40%
Wage inflation: 20-25%
Unemployment rate of university graduates: 17.2%
Possibly up to 40% of all university graduates are not productively employed
Fast growing economies with huge labour pools developing rapidly into high end of the services market – with huge labour pools but wrong skills *Source: Deutsche Bank; Tamara Trinh, Alpbach, Aug 30, 2006 McKinsey Global Institute
The number of university graduates will increase by 22 percent in 2006 to 4.1 million.
The national literacy rate in China is 91 percent among people aged 15 and over.
And workers now entering the labor force will have had a minimum of nine years’ compulsory schooling.
Is it really that bad in China?
90 percent of the world’s top 500 multinationals have now invested in China but for China to fuel its current growth levels, it needs to develop internally the same level of talent in seven years that exists now in the UK and France. Image source: Getty images
The Growing Pain – Talent Shortage Source: 2004 survey, American Chamber of Commerce in Shanghai, along with six other Chambers of Commerce Large candidate pool, still growing. Flat wages due to fierce competition for jobs. Entry Level White Collar Workers Emerging shortage in supply over last 2 years. Shortage mainly in coastal cities. Rapidly increasing wages. Blue Collar Workers Growing candidate pool. Demand outstrips supply. Stiff competition among companies - may ease in 6-8 years. Mid-Level Managers Severe shortage - 40% of employers indicate difficulty to fill Senior Manager positions. More difficult and more expensive in future. Senior Managers
Fast growing economies with huge labour pools developing rapidly into high end of the services market – with huge labour pools but wrong skills
Offshoring will be a two way street – Jobs are going where people are
EU and US will become recipients
Labour markets will be truly global – People are going where jobs are
ICT makes global work organizations a reality
Access to tacit knowledge frames how we work – technology will break the barriers
The aging workforce conundrum is that the older employees who have the talent companies most need to retain are those who have the financial flexibility and employment options to retire or downshift to a more flexible work arrangement.
Savvy employers will develop innovative ways of retaining these critically important contributors as long as possible.
Understanding and Engaging Older Workers The key to older worker engagement is to focus on the same issues that are important to other age groups
Net immigration flows Net emigration countries Net immigration countries annual average 95-00 Source: United Nations (2002) Annual net number of migrants, 2005-2015 (‘000) 1,330 748 -329 -647 -1,194 N America Europe Africa Latin America Asia Source: UN UN definition of regions Migration
Mexicans/Hispanics into the US. East European Union workers to the UK. Indians/Pakistanis into the UAE. Pakistanis into Malaysia. Anyone with skills into Singapore. Koreans into Japan. Polish into Germany. Africans into Europe. Migration
Global Competition Image source: Getty images The dynamic nature of society is making it more complex for employers to manage their workforces, ensuring that they have the right skill sets available, for the right jobs, at the right time.
Four-year degree Isolated Tailored programmes One-size fits all Global Cost Industrial Economy Knowledge Economy The Knowledge Economy Virtual learning communities Forty-year degree ROI Local
Joint responsibility for the future of education, skills and learning lies with:
To implement work training programs, equipping the workforce with ‘soft skills’ that are increasingly in demand in today’s flatter organizational structures.
To develop educational tools and systems to meet the needs of the knowledge economy and equip the workforce with core portable skills such as team work, problem solving, information computer technology skills etc.
- Employees need to embrace lifelong learning. This involves an attitudinal shift.