Can Revising Recruitment and Retention Strategies Now Dodge a Future Talent Deficit?
Automation, immigration and women workers will prove crucial to staving off global labor shortages, says Frost & Sullivan
MOUNTAIN VIEW, California, Oct. 6, 2015 /PRNewswire/ -- The global labor force participation rate will continue its decline, reaching 63.1 percent in 2025. Driving this trend is the fact that, in many countries, the population share of those 65 and older is increasing. This demographic shift will raise dependency burdens for prime-age workers and intensify competition for labor. To compensate, countries will push back retirement ages, businesses will adopt more automation solutions, and employers will rely more heavily on female and immigrant labor pools.
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Recent analysis from Frost & Sullivan, The Global Future of Work—The Future Labor Force (http://www.frost.com/nf03), finds that in addition to overall participation rate declines, the global labor force will experience a surge in millennials. By 2025, those currently aged 15 to 34 will comprise almost half of all workers. Businesses must consider how they will accommodate up to four generations of employees in addition to an increasingly culturally diverse workforce.
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"Companies need to implement strategies to prevent a future talent shortfall," said Frost & Sullivan Visionary Innovation Group Senior Research Analyst Jillian Walker. "In many economies, women earn more degrees than men. Thus, recruiting and mentoring female graduates as well as taking millennial preferences seriously will go a long way in curbing an anticipated talent crunch."
Demand for highly-skilled science, technology, engineering and math (STEM) workers will further pressure labor supplies in developed economies, causing many countries to revise their immigration policies. However, given rising standards of living and an expanding middle class, especially in India and China, many STEM workers will opt to stay in their home countries. Better communication between the business sector and education providers is needed to proactively address anticipated skills gaps. Moreover, business will have to assume greater responsibility in training future employees.
"Businesses must recognize that to be competitive in the future, they will have to be more flexible in the skills they recruit for and how they accommodate employee lifestyles," added Walker. "The corporate world must invest in today's students to ensure that tomorrow's demands are met."
While STEM worker shortages will persist, the freelance community will grow, spurring new and emerging employment models, enabled by greater levels of connectivity. Businesses will embrace hybrid labor pools, facilitated by online marketplaces and innovative labor solutions, such as adopting open innovation programs or crowdsourcing amateur expertise.
Labor supply innovation will be supported by new United Nations (UN) and Group of 20 (G20) goals, which underscore the importance of achieving education and gender equality globally as well as aligning education with labor-market needs.
The Global Future of Work—The Future Labor Force is part of the Visionary Innovation Research (http://ww2.frost.com/consulting/consulting-toolbox/mega-trends-ideation) Growth Partnership Service program. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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The Global Future of Work—The Future Labor Force
NF03-MT
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