MILWAUKEE: Employers around the world are facing the most acute talent shortage since 2006, according to the latest Talent Shortage Survey, released today by ManpowerGroup (NYSE: MAN).
Of the almost 40,000 employers surveyed, 45% are struggling to fill roles, with skilled trades workers, sales representatives and engineers the most difficult to find.
Employers in Japan (89%), Romania (81%) and Taiwan (78%) report the most difficulty filling positions as populations age, skills needs shift, and organizations struggle to find the right blend of technical skills and human strengths.
In a Skills Revolution where new skills emerge as fast as others become obsolete 27% of employers say applicants lack either hard or soft skills.
Employers are placing greater importance on transferable soft skills as roles adapt, more than half of employers say communication skills – written and verbal – are their most valued soft skills, followed by collaboration and problem solving.
“With record talent shortages around the world, it’s no longer a question of simply finding talent; we need to build it,” said Jonas Prising, ManpowerGroup Chairman & CEO.
“New assessments, big data and predictive performance mean employers have the best tools to identify adjacent skills, help people shift into emerging roles and create clear career paths. We know talent shortages are not going to fix themselves. Organizations need to accelerate efforts to upskill and reskill employees for the new world of work so companies succeed and people have employment security for the long term.”
ManpowerGroup asked 39,195 employers across 43 countries and territories how much difficulty they are having filling roles, which skills they are struggling to find and what they are doing to solve talent shortages.
APAC: The Asia Pacific region is suffering the most acutely from talent shortages, with five of the top 10 worst affected markets in the survey: Japan, Taiwan, Hong Kong, Singapore and India. In Japan, the number of employers reporting difficulty continues to grow, currently standing at 89% – the highest reported globally.
Americas: Argentina is suffering from the most severe talent shortage in the region at 52%. In Brazil 34% of employers report difficulty. Mexico faces the biggest increase in hiring difficulty, jumping from 40% to 50% since 2016. Brazil, Colombia and Argentina have experienced the greatest improvement in talent shortages since 2016. The number of U.S. employers experiencing talent shortages has grown from 32% in 2015 to 46% in 2018 – just above the global average.
EMEA: Ireland (18%), the UK (19%) and the Netherlands (24%) are experiencing the least difficulty filling jobs. The worst affected markets in Europe are Romania at 81%, up 9 percentage points, and Bulgaria, up 6 percentage points since 2016.
Global talent shortages are at the highest level in 12 years. ManpowerGroup is advising new solutions to the growing talent problem: Build, Buy, Borrow, Bridge
BUILD: Invest in learning and development to grow the talent pipeline and upskill the existing and potential workforce.
BUY: In a tight labor market, go to the external market to find the best talent that cannot be built in-house in the timeframe required to fill immediate openings.
BORROW: Cultivate communities of talent inside and outside the organization including part-time, freelance, contract and temporary workers to complement existing workforce.
BRIDGE: Help people move on and move up to new roles inside or outside the organization.
