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Jamie Lawrence

Wagestream

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News: skills gap dragging down leading economic powers

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Many of the world’s strongest economies are suffering losses in productivity revenue due to a skills gap, according to new research from CareerBuilder.

Employers in economically strong countries said that extended job vacancies have resulted in an inability to grow their business.

Those in China were most likely to report the negative effects of open positions on performance, while Russian houses the largest number of employers reporting revenue shortfalls linked to extended job vacancies. US employers reported one of the highest productivity losses.

In the UK, four in 10 employers reported experiencing a shortage of skilled labour in their organisation, while a further 34 percent report their top performers left the company in 2012.

A further half of employers plan to train workers who don’t have experience in their particular industry/field for positions and hire them within their company this year.

“The inability to fill high skill jobs can have an adverse ripple effect, hindering the creation of lower-skilled positions, company performance and economic expansion,” said Matt Ferguson, CEO of CareerBuilder.

“Major world economies are feeling the effects of this in technology, healthcare, production and other key areas. The study underlines how critical it is for the government, private sector and educational institutions to work together to prepare and reskill workers for opportunities that can help move the needle on employment and economic growth.”

HR must direct resources into identifying the types of employees they want to hire (and the skills they require) and making sure that recruitment processes keep these values in mind at all times. Working more closely with education providers can also reduce the dichotomy between the skills people develop and the skills employers need. With current employees, effort must be made to maintain up-to-date records of their training requirements and ensure regular skills training is offered.

The global survey, conducted online by Harris Interactive from November 1 to November 30, 2012, included more than 6,000 hiring managers and human resource professionals in countries with the largest gross domestic product. 

One Response

  1. Still falling for this one?

    In Aust just at start of dotcom crash, when the ITCRA (IT&C Recruitment Assoc) put this proposal to govt to relax 457 visas for skills that are claimed as only available in foreign workers, our IT graduates began two years of having the lowest employability OF ANY leaving our universities with a degree. A decade later, and only now are questions being raised as to why biz can recruit o/seas using the 457. I have a Bach Eng, a Diploma in Proj Mngmt and another in a Healthcare field from two of our most reputable unis (Swinburne & Monash). Not an interview in the last 6 months! 

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Jamie Lawrence

Insights Director

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