Korn Ferry’s latest study on the future of work, The Talent Crunch, reveals the financial impact of skilled talent shortages at three different time horizons – 2020, 2025 and 2030 – across 20 major developed and developing economies.
The talent shortage crisis could undermine market dominance within sectors:
- Labour shortages in financial and business services are the most severe with a potential deficit of 10.7 million workers globally by 2030, which could cause the sector to lose out on annual output of $1.3 trillion.
- Technological advancement across all sectors of the economy could be hindered by an acute global labour shortage of 4.3 million TMT workers by 2030.
- Manufacturing is facing a talent deficit crisis of 7.9 million workers globally by 2030, despite being the only sector with a surplus of highly skilled workers in 2020.
The study also reveals a sizeable mismatch between supply of available workers and business demand at country level:
- Developed markets will be hardest hit by imminent talent shortages.
- Australia, France, Germany, Japan and the U.S. face the largest crunch, with a combined opportunity cost of $1.9 trillion in annual output by 2020.
- The U.S. faces a critical shortage of skilled workers that is set to worsen. It could leave $1.7 trillion of annual output on the table by 2030 - equivalent to 6 percent of the country’s economy.
- India is the only economy in the study set to maintain a talent surplus in 2025 and 2030.
It scrutinizes data and business intelligence to uncover the extent of the talent shortfall in 20 major economies. The 20 markets covered are: the Americas (Brazil, Mexico, the U.S.), EMEA (France, Germany, Netherlands, Russia, Saudi Arabia, South Africa, U.A.E., U.K.) and Asia Pacific (Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, Singapore, Thailand).