Forecasting Global Job Gaps
June 21, 2012
As noted in today’s news section, The McKinsey Global Institute (MGI) recently looked at the 70 countries that account for 96 percent of global GDP and are home to 87 percent of the world’s population.
By plotting their populations’ educational and age profiles, as well as per capita GDP, analysts can see how prepared their national labor forces are to meet future demand, how easily they can grow their labor forces, and how productive their labor is. This yields eight clusters of countries: four in developing economies, three in advanced economies, and one group comprising Russia and Central and Eastern European states.
While market forces will move to eliminate projected imbalances before their full impact is felt, they cannot be avoided entirely without a concerted, global effort by governments and businesses to raise educational attainment and provide job-specific training. Advanced economies will need to double the pace at which the number of young people earning college degrees is rising—and find ways to graduate more students in science, engineering, and other technical fields; these workers will be in high demand, and their contributions will be critical for meeting the rising productivity imperative.
Secondary and vocational training must be revamped to retrain mid-career workers and to provide job-specific skills to students who will not continue on to college.
Even then, in the next two decades, the world is likely to have too many workers without the skills to land full-time employment. In both developing and advanced economies, policy makers will need to find ways not only to produce high-skilled workers but also to create more jobs for those who aren’t as highly educated.
Solutions include moving up the value chain in developing economies (food processing creates more employment than growing export crops, for example) and finding opportunities for workers without a college education to participate in fast-growing fields—such as health care and home-based personal services—in advanced economies.
Businesses operating in this skills-scarce world must know how to find talent pools with the skills they need and to build strategies for hiring, retaining, and training the workers who will give them competitive advantage. This will include finding ways to retain more highly skilled women and older workers. Businesses will also need to significantly step up their activities in shaping public education and training systems in order to build pipelines of workers with the right skills for the 21st-century global economy.
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