If the economy is getting better, then why do 38% of employers worldwide report that they are struggling to fill positions?
Today, when employers go hunting for talent they find that there’s not enough of it to go round. In the latest report from the Indeed Hiring Lab, we take a deep dive into the factors impacting on the global jobs mismatch and what employers can do about it.
Here are just some of the things we cover:
1. Migration and brain drain
According to OECD data, migration levels have returned to pre-recession levels. In 2014, the number of people on the move hit 4.3 million, the highest figure since the Global Financial Crisis began in 2008.
Once again huge numbers of people are crossing international borders in pursuit of opportunity—but not every country is a net winner from this trend. Some will lose more talent than they gain.
In the report, we study the emerging trends in these migration patterns and what it means for the labour market. By analysing Indeed data on the volume of searches coming into a country versus the volume of search going out, we developed a new way to measure the risk of “brain drain.”
Who is winning the battle for talent? The results will surprise you—and as businesses seek to head off potential talent shortages, this information will help employers plan for the future.
Today, education levels are rising. In fact, the average rate of people completing tertiary education in eight of the world’s 12 largest economies increased by nearly 10 percentage points between 2000 and 2012, according to the OECD.
It’s usually assumed that that the more educated the workforce is, the better this is for employers and for the economy. But businesses today are finding that traditional methods of learning are not necessarily equipping today’s workforce with the skills required to succeed in the 21st century.
Employers will have to become more directly engaged in training the staff they need—and we explore how they can do this in the report.
3. New forms of work
While traditional incentives such as salary, role, location are still key means by which employers can attract talent, another factor is emerging as a consideration: Flexibility. In fact, interest in flexible work increased by 42.1% from 2013 to 2015 in nine of the 12 countries we examined in the report.
The old idea that jobs with “flexible” hours are badly paid, part-time gigs— such as online data entry or fake get rich quick schemes—is increasingly obsolete. Indeed data shows that the top three areas in Australia in which people are searching for terms related to flexibility are high-skill, high demand jobs such as IT, healthcare and management roles, with similar patterns in other countries.
Employers may find that offering greater flexibility can help close that talent gap—as we explore in the report.
Finally we examine one of the great conundrums of the global economic recovery— if businesses are doing better, then why is wage growth so minimal?
As employer demand for labour rises and the supply of available talent decreases, then wages usually increase since they act as a key incentive for workers considering one job over another. However global wage growth from 2011 to 2014 registered a mere 0.5%—even though employers report difficulty filling posts.
Flat wages are not a universal problem, however—workers in some in-demand professions can command high salaries.
However, the division between highly paid high skill and low paid low skill could spell problems for employers who traditionally found and nurtured talent in what is now a shrinking middle. Wage polarisation may be a problem for everybody in the future, and as we show in the report it’s an issue employers may have to tackle.
And those are just some of the highlights: For more valuable employer insights, download our latest report Labour Market Outlook 2016: Uncovering the Causes of Global Jobs Mismatch.