Help Wanted: Bridging the Gap in Today’s Skill Lacking Economy

679 views

Published on

The growing gap between the market places’ current skills and the future capabilities of the marketplace to meet the needs for future development is what is being called the Skills Gap. Organizations and companies in the US and across the globe are noting this every widening gap. Even more disturbing is the large unemployment rate still plaguing the US and other economies. The skills gap, if left unchecked, will have lasting effects on business, the economy, and the world at large. This visualization was based on two prestigious reports from National Institute of Standards and Technology (NIST) & Mckinsey Center for Government.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
679
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
8
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Help Wanted: Bridging the Gap in Today’s Skill Lacking Economy

  1. 1. http://mckinseyonsociety.com/downloads/reports/Education/Education-to-Employ ment_FINAL.pdf http://nist.gov/mep/upload/Bridging-the-Skills-Gap_2012.pdf Created by oBizMedia SOURCES It is the point at which an organization can no longer grow or remain competitive because it cannot fill critical jobs with employees who have the right knowledge, skills, and abilities. ACCORDING TO A 2012 ASTD MEMBER SURVEY 5%: increase in respondents that indicate there is a skills gap in their organization between 2009 and 2012 84% of respondents indicated that there is a skills gap in their organization Worldwide, young people are three times more likely than their parents to be out of work Potential shortage of workers in 2020: of US employers say lack of skills is a common reason for entry-level vacancies Middle-skill: Highly specialized mechanical, technical, and production careers that may require industry or government certification but not necessarily a bachelor’s degree The manufacturing industry has shrunk by 1/3 its size during the last decade–losing nearly 4 million jobs. forecasted growth for non-residential construction projects by 2015 – such growth has serious implications for the availability of skilled construction workers “Skilled green workers are hard to hire for” (According the MHC’s 2012 Construction Industry Workforce Shortages Report) Automation has transformed factories and altered necessary skills for operating and maintaining equipment. Top 3 Factors Contributing to Construction Skills Shortage: According to ASTD: IMPACT ON GREEN SKILLS JOB MARKET INDUSTRIES WITH GROWING HIGH-SKILLS GAPS According to Deloitte’s report, Boiling Point? The skills gap in U.S. manufacturing of surveyed U.S. manufacturing executives report a moderate to severe shortage of available, qualified workers anticipate the shortage of available, qualified workers to grow worse in the next three to five years of architecture/engineering firms agreed with the above statement High-skills: STEM fields (science, technology, engineering, and math) require at least an undergraduate degree Businesses that rate the aggregate skill levels of their IT staff as less than optimal IT employers that indicate that there is an overall skills gap among employees *Soft skills: communication, collaboration, creativity, and critical thinking executives: said that soft skills are important to support business expansion Skills of the workforce don’t match company strategy, goals, markets, or business models Lack of bench strength in the company’s leadership ranks Less of an investment in training/lack of support for employee learning and development in training/lack of support for employee learning and development “The main reason students drop out is that the course of study is too difficult” ½: those above are enrolled in curricula that prioritize those techniques Lead to more long-term and permanent joblessness Greater polarization of incomes between high- and low-skilled workers Millions of low-skilled workers will be trapped in subsistence agriculture and urban poverty 9 TIMES HIGHER: the income gap between the top 10% and the bottom 10% 1/4 of youth do not make a smooth transition to work 36%:OECD Country’s employers reported that a lack of skills caused “significant problems in terms of cost, quality, and time” or worse Slow their climb into higher value-added industries “New graduates are adequately prepared for entry-level positions” HIGHEST RANKED AREAS FOR SKILLS GAPS: (ACCORDING TO AN ASTD MEMBER SURVEY) According to a survey conducted by the American Management Association: of general contractors agreed with the above statement WHAT IS A SKILLS GAP AND WHY DOES IT EXIST? WHAT ARE THE BIGGEST GAPS? increase in job openings in one year MIDDLE- AND HIGH-SKILLS JOBS HAVE THE LARGEST GAPS ACCORDING TO A.S.T.D’S MEMBER SURVEY: Growing Middle-Skills Industries Facing Job Shortages: Manufacturing Construction Healthcare RETIRING WORKERS IMPACT OF THE RECESSION INSUFFICIENT PIPELINE OF NEW WORKERS Nuclear Industry: LEADERSHIP AND EXECUTIVE SKILLS MANAGERIAL AND SUPERVISORY SKILLS PROFESSION- OR INDUSTRY-SPECIFIC SKILLS ADVANCED ECONOMIES DEVELOPING ECONOMIES SKILLS GAPS CAN TRANSLATE INTO: Slower growth Form a barrier to middle-income jobs Lost productivity Create an inability to compete and expand High on-the-job training costs Compromise industry’s ability to build a pipeline of workers HelpWantedBRIDGING THE GAP IN TODAY’S SKILL LACKING ECONOMY he growing gap between the market places’ current skills and the future capabilities of the marketplace to meet the needs for future development is what is being called the Skills Gap. Organizations and companies in the US and across the globe are noting this every widening gap. Even more disturbing is the large unemployment rate still plaguing the US and other economies. The skills gap, if left unchecked, will have lasting effects on business, the economy, and the world at large. T TOP REASONS FOR THE SKILLS GAP IMPACT OF THE SKILLS GAP INFORMATION TECHNOLOGY INDUSTRY According to ComTIA: MANUFACTURING INDUSTRY UNEMPLOYMENT AND WORKER SHORTAGE The American Society for Training & Development (ASTD) defines a skills gap as: “A significant gap between an organization’s current capabilities and the skills it needs to achieve its goals.” Despite vast unemployment of the world's youth, there is still a critical skills shortage across the globe. 75 million young people around the world are unemployed (According to the International Labour Organization) (According to the McKinsey Global Institute June 2012 report, The world at work: Jobs, pay, and skills for 3.5 billion people) High-skills workers - 13% of the demand Middle-skills workers - 15% of the demand Low-skills workers - 10% of the demand MILLION MILLION MILLION 38-40 45% 90-9545 .7MILLION Despite a slight decrease in unemployment and a slight increase in the number of job openings, employers struggle to find skilled talent 67% 56% CONSTRUCTION INDUSTRY ACCORDING TO AAR CORP’S THE MID-SKILLS GAP IN MIDDLE AMERICA SOFT SKILLS SHORTAGE ACCORDING TO MCGRAW-HILL CONSTRUCTION (MHC) 73% 86% 91% MASS OF RETIRING EMPLOYEES DEFICIT OF TRAINING PROGRAMS GROWING SKILLS GAPYOUNG WORK-FORCE'S WANING INTEREST IN THE FIELD + + = 15+ MILLION 91% 9OF10 executives: rated their employees as above average in soft skills 4OF10 US students believe their postsecondary studies (post-high school) improved their employment opportunities44% of youth and employers believe the above statement is true 50% of education providers believe the above statement is true 72% of education providers believe the above statement is true 39% of youth say the above statement is true (affordability is cited as the main reason)9% Education providers that report they are able to estimate the job-placement rate of their graduates67% Education providers over estimate the job-placement rate of graduates compared with what was reported by youth20% Youth say that on-the-job training and hands-on learning are the most effective instructional techniques60% International Graduate Destination NoGRE.com 1/3 $ 01 02 03 04 05 06

×