The global skills dilemma: How can supply keep up with demand?: The Hays Global Skills Index 2019/20
The Hays Global Skills Index (the ‘Index’) is an annual assessment of the issues and trends impacting skilled labour markets and examines the dynamics at play across 34 markets, determining how easy or difficult it is for organisations to find the skilled professionals they need. In addition to the deep analysis of some of the world’s largest labour markets, the report highlights several factors impacting economies globally, including wage stagnation and its potential causes, the disappearance of mid-skilled jobs and occupational gender segregation. This year’s Index, the eighth edition to date, reveals two pressures are having particularly important and opposing impacts on skilled labour markets around the world. Our research has found that ‘talent mismatches’ are worsening in many of the labour markets featured within the Index, at the same time wage premiums paid for high-skilled occupations are typically easing. Overall, labour market conditions remain similar to last year, with the average Index score unchanged at 5.4 – halting a steady rise since the Index began in 2012. Underneath this figure, however, are widespread variations among the 34 labour markets featured. To help tell the wider story, the data for each market is complemented by the insights of Hays experts on the ground to describe the unique challenges each labour market is facing today. One positive development of recent years has been the widespread drop in unemployment rates across the economies in the Index. However, this decline in the number of jobseekers has not typically seen an increase in wages, as might have been expected. This report investigates some of the possible reasons behind the continued wage stagnation across the globe. As with previous years, we have developed a list of recommendations for policymakers and business leaders to consider as part of their wider drives to solve the world’s employment challenges: (1) Invest in education, life-long learning and reskilling programmes as a priority for governments and businesses; (2) Employers should actively motivate employees to take advantage of flexible working and geographically distant opportunities; and (3) Companies should embrace diversity in the workforce in all its forms.