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Global Talent Shortage: A Looming Crisis for Industries by 2030, (from page 20240915.)

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Summary

A Korn Ferry study reveals a global talent shortage of over 85 million people by 2030, surpassing the population of Germany. This shortage could lead to $8.5 trillion in unrealized annual revenues if not addressed. The primary causes are demographic shifts, including low birth rates in countries like Japan and many European nations, and the retirement of baby boomers in the U.S. The U.S. tech sector could lose $162 billion annually due to this talent crunch unless companies enhance training and education initiatives. Organizations are encouraged to adopt continuous learning cultures and to invest in developing talent from educational institutions.

Signals

name description change 10-year driving-force relevancy
Global Talent Shortage A projected shortage of over 85 million workers by 2030. Shift from concerns about job loss to workforce shortages due to demographic changes. In 10 years, organizations may struggle to fill skilled positions, impacting economic growth. Aging populations and low birth rates in developed nations drive the talent shortage. 5
Rise of Continuous Learning Culture Organizations are increasingly promoting continuous learning and upskilling. Transition from static job training to ongoing education and skill development. In a decade, continuous learning may become a norm in workplaces, enhancing employee adaptability. The need to address skill gaps and technological advancements encourages continuous education. 4
Shift in Tech Leadership India may emerge as a new leader in technology due to a surplus of skilled workers. Change from the US dominance in tech to a potential rise of India as a tech powerhouse. In 10 years, India could lead in tech innovation, altering global economic dynamics. The talent shortage in the US coupled with India’s growing educational infrastructure. 4
Demographic Impact on Workforce Aging populations in countries like Japan and the US are affecting workforce availability. Shift from a stable workforce to significant shortages due to demographic trends. Workforces in aging nations may shrink, leading to economic challenges and job gaps. Low birth rates and retiring baby boomers create a demographic crunch. 5
Corporate Responsibility for Education Companies are increasingly taking responsibility for training and education. Shift from reliance on formal education systems to corporate-led training initiatives. In 10 years, companies may have robust training programs, reshaping talent acquisition. The urgent need for skilled workers compels companies to invest in employee education. 4

Concerns

name description relevancy
Global Talent Shortage A projected shortage of over 85 million skilled workers by 2030 may hinder economic growth and development globally. 5
Impact on Job Market The shift to automation and AI may create a mismatch between job availability and the skills of the workforce. 4
Undertrained Workforce Younger generations may lack the necessary training and experience to fill high-skilled positions left by retiring baby boomers. 4
Erosion of Tech Leadership Countries like the US risk losing their leading position in technology due to a shortage of qualified tech workers. 5
Demographic Challenges Low birth rates in countries like Japan and parts of Europe may exacerbate the talent shortage. 4
Need for Continuous Learning Organizations must adapt to a culture of continuous learning to ensure their workforce remains competitive and skilled. 3

Behaviors

name description relevancy
Talent Strategy Prioritization Organizations must prioritize talent strategies to address impending shortages and invest in workforce education and training. 5
Upskilling and Reskilling Companies are focusing on upskilling and reskilling existing employees to fill high-skill job gaps created by demographic shifts. 5
Continuous Learning Culture Organizations are fostering a culture of continuous learning to adapt to changing job requirements and technological advancements. 4
Hiring Fresh Graduates Firms are increasingly hiring recent graduates to build a talent pipeline and address skill shortages in critical areas. 4
Government Collaboration for Education Reform There is a growing need for collaboration between companies and governments to reform education systems to meet future workforce demands. 5
Global Talent Mobility With varying talent shortages in different countries, companies may need to consider global talent mobility to fill skill gaps. 4
Sector Power Dynamics Shift The talent crunch could significantly shift power dynamics in industries, with emerging markets like India potentially leading in tech talent. 4

Technologies

description relevancy src
The use of robots in various industries to automate tasks traditionally performed by humans. 4 a2de650354976b7bc4c6442255f91931
Intelligent systems capable of performing tasks that typically require human intelligence, such as decision making and problem solving. 5 a2de650354976b7bc4c6442255f91931
Organizational frameworks that promote ongoing education and skill development among employees to adapt to changing job requirements. 4 a2de650354976b7bc4c6442255f91931
Tools and platforms designed to help organizations manage workforce talent and address skill shortages effectively. 4 a2de650354976b7bc4c6442255f91931
Training initiatives aimed at improving the skills of the existing workforce to meet future demands. 5 a2de650354976b7bc4c6442255f91931
New methods and technologies for delivering education and training to better prepare workers for high-skilled jobs. 5 a2de650354976b7bc4c6442255f91931

Issues

name description relevancy
Global Talent Shortage A projected shortage of over 85 million skilled workers globally by 2030, impacting revenue and workforce capabilities. 5
Demographic Shifts and Workforce Aging Aging populations, particularly in developed nations, leading to a significant reduction in available skilled labor. 4
Impact of Automation on Employment While automation is expected to rise, the real challenge is the lack of qualified human workers, contrasting common beliefs about job loss. 4
Shift in Global Tech Leadership Emerging economies like India may surpass traditional leaders like the US in tech talent availability by 2030. 4
Continuous Learning and Upskilling Organizations must adapt to a culture of continuous learning to address skill gaps and prepare for future workforce needs. 5
Educational System Reforms Governments may need to rethink education and training programs to create talent pipelines for future industries. 4