Where are all the Workers?

The global talent shortage continues to be a major challenge for organizations eager to hire and retain the best employees

A prominent labor shortage defined 2021, even as the global economy made great strides and offered up many job opportunities. In this respect, we are still feeling the complex effects of the pandemic—and 2022 is not expected to bring much of a reprieve. Over the next 10 years, in fact, the global talent shortage could climb to as many as 85 million people.

We’ve examined this and other critical talent trends in the second edition of AgileOne’s series of reports on the state of the global workforce. This report, Workforce Solutions Market Overview—Building and Sustaining an Agile Workforce for the Future, provides a deeper look at the current talent shortage in both the U.S. and EMEA markets. We’d love for you to access the report here to gain a better understanding of the talent shortage and how regional/industry factors are likely to shape your own workforce in the near future.

Talent shortages across markets

A plethora of jobs, plus a constrained talent pipeline, have created a global crisis that will reach a breaking point soon. Those 85 million people lost to the job market in 10 years will not only make it hard for companies to operate on a daily basis, but will also contribute to $8.5 trillion in collective lost revenue.

Talent shortages and the associated challenges, however, do not look the same on every continent.

In the U.S., for example, there is a firm shift from companies interviewing candidates to candidates interviewing companies. Indeed, more and more workers are starting to value things beyond salary, leading them to seriously rethink traditional employment arrangements. As a result, close to 25% of all workers are planning to leave the job market post-pandemic. Vaccine mandates are compounding the issue: 40% of U.S. workers oppose mandates, and 72% of U.S. organizations say mandates make it harder to do business.

While COVID-related culture issues are less prominent in Europe, they are certainly seeing their share of challenges. Brexit continues to make its mark on the talent shortage now that the UK can no longer easily recruit certain resources from Europe. This means companies must increasingly rely on UK citizens, who often require higher salaries. The talent pool is at a historic low in the Netherlands, with workers seeking better opportunities to gain technical skills. In Germany, a new government elected in September 2021 is creating more uncertainty around Europe’s biggest economy and the country’s ability to tackle its own labor shortage.

Talent shortages across industries

Certain sectors more than others are feeling the strain of finding the right people to help them operate and achieve success. Financial and business services, for example, will have a 10.7 million worker shortfall by 2030. Manufacturing is another essential global industry, requiring millions of people with specialized skills. COVID-19 has only exacerbated the well-documented talent shortage here, with 54% of American manufacturers reporting more difficulty hiring workers since the pandemic started. In emerging countries like Brazil where manufacturing is the foundation of the economy, there is a predicted 1.7 million shortfall of manufacturing workers.

Pharmaceuticals and Technology, Media, and Telecommunications (TMT), have distinct constraints. The years-long challenge of recruiting those with STEM skills continues, making pharma particularly vulnerable to talent shortages. In technology, finding a way to build a better talent pipeline with highly-skilled workers will be required to fix the talent shortage, which is expected to reach 4.7 million people by 2030.

Top five takeaways

Our full report provides much more detail on these challenging aspects of talent today—as well as what every company can do to make sure they are prepared to address their own talent shortages.

1.??????Consider contingent: Value and flexibility reign supreme in the contingent world. By adding this talent model to your workforce—and working with a partner like AgileOne—you can diversify your workforce strategy and be prepared for any talent demands.

2.??????Look beyond your industry: There is qualified talent out there who can adapt to jobs in new industries.

3.??????Reskill and upskill: Take advantage of your current workforce by giving them the opportunity to learn new skills.

4.??????Keep flexing: Offer flexible work options even after the pandemic ends, recognizing that workers today expect creative options for getting their work done.

5.??????Break down borders: Recruit globally where possible if the local talent pool falls short.

Want to know more? Download our second edition of the Workforce Solutions Market Overview today.?