Technological changes coupled with rapid globalization are the greatest
contributors of changes regarding skills requirements in the job market.
Employers across the globe are being forced to put a herculean effort to source
qualified candidates to fill various positions in their companies. However, the
extent of the shortage in skills
varies greatly from one nation to the other.
Most affected industry sectors
Some sectors have been affected more than others by the global skills and
talent shortage. Taking Europe as an example, the employers in the
manufacturing sector carry the greatest burden of looking for skilled labor
because demand outweighs the supply. The financial crisis experienced globally
in 2007 reduced the skills shortage levels significantly. The effects did not
last for long as the problem made a comeback in 2008 resulting in escalated
levels of skills shortage. Results from a UN study
carried out recently confirmed that youth unemployment globally stands at 13%
even as companies are struggling to find people with relevant skills to work
for them.
Japan, Brazil and India are some of the countries facing a serious challenge
in terms lack of adequate supply of a skilled workforce to drive their
industries.
Japan – aging population and immigration curbs
Japan has found itself on the receiving end of problems associated with an
aging population. Skills shortage in Japan extends from IT experts to hotel
waiters. The aging population is not the only cause of skills shortage as
immigration curbs as well as education gaps have contributed significantly to
the problem. The labor problem in Japan is so intense such that it prompted
Japanese Prime Minister Shinzo Abe to loosen the rules so as to allow skilled
expatriates to join the workforce in Japan. Companies like DeNa Co., a company based in
Tokyo faces the challenge of locating tech talent because locals can only
provide 10% of engineers who possess skills in Web technology.
Another company that has seen the impact of the shortage of skills in Japan
is Rakuten Inc. The company
manages the largest site for e-commerce in Japan and close to 80% of Engineers
joining the company are expatriates. It has emerged that applicants from,
foreign countries have better language skills and comprehensive engineering
university training compared to their Japanese counterparts. Evidently, IT
industry is huge in Japan, and the local population cannot satisfy the
ever-growing demand for Tech experts.
Brazil – rapid industrial growth
Brazil is another country that found itself in a tricky situation caused by
the shortage of skills. Being among the countries with vast natural resources,
Brazil is struggling with finding skilled people to work in its manufacturing
industry. Brazil is a fast-growing economy that took people by surprise by
accomplishing too much in a short period of around 20 years. The rapid growth
of the Brazilian industries raced far ahead of having effective financing of
institutions of learning that offer quality education and produce highly
skilled graduates. The end results have been the creation of a dire shortage of
skills in the labor market that can match the high rate of economic
development. Some companies in Brazil have taken the initiative to support
enrollment high school dropouts for vocation training and bridge the gap demand
and supply of skills required in industry.
India – problems of education reforms
Employers in India also have a first-hand experience of the frustration
caused by a shortage of skilled labor in the country. The Indian educational
reforms are slower than the rate of technological change as well as the
industrial growth. The employers have been forced to invest a lot in the
training of newly hired workers as a way of enhancing their skills. Most people
in India are looking for jobs, but they do not possess the basic skills
required in various sectors of Indian economy. Indian vocational training
centers are not enough to train adequate candidates who can fill in the many
available positions in industries. Young graduates who have been trained in engineering
often switch jobs from one company to the other further complicating the
problem.
The problem of shortage of skilled workforce is not a reserve of the three
countries mentioned above but a global challenge.
