(PRWEB UK) 14 November 2012
The world is facing an economic paradox in which many countries are witnessing high and rising unemployment, whilst still suffering from chronic skill shortages in crucial professions as a result of labour market inflexibility, global competition for talent driving up salaries and poor or inadequate education and training.
These are the findings of a major new report published today by Hays plc, the leading global professional recruiting group, produced in collaboration with Oxford Economics. The “Hays Global Skills Index 2012” represents a unique and insightful barometer of the market dynamics and availability of professional skills in 27 key economies around the world.
The Hays Global Skills Index creates a score for each country of between 0 and 10 on the constraints and frictions being faced by its market for skilled labour. This is calculated through an analysis of seven components, covering areas such as education levels, labour market flexibility, and high-skill wage pressures.
A score above the mid-point of 5.0 suggests that employers are witnessing difficulties finding the key skills they need and are suffering market friction, whilst a score below 5.0 indicates a lax labour market in which there are no major constraints on the supply of skilled labour. Within these overall scores however, the scores attributed to each of the seven components can vary significantly, highlighting the different dynamics and pressures faced by each country.
The report shows that each country surveyed faces specific issues in its skilled labour force. 16 of the 27 countries are currently suffering some degree of labour market tightness, despite the global economic slowdown. This drives wage inflation and leaves many valuable roles unfilled, thereby constraining economic growth. The worst affected are Germany and the United States, where there are considerable skill shortages despite high unemployment levels. At the other end of the scale, most of the countries with slack labour markets are in the Eurozone, where countries like Italy and Belgium see the lowest levels of friction and constraints in terms of hiring high skilled professionals.
To combat the mismatch of skills availability and demand, the Hays report proposes a long-term three-point action plan for policymakers. First, governments should focus on the skills their economies lack and take appropriate measures to attract the relevant people through targeted immigration. This would in many cases require an overhaul of existing work visa arrangements. Second, employers should be offered fiscal incentives to increase their provision of relevant training. Third, governments should work with employers and educational authorities to implement a series of measures and incentives to persuade young people to acquire the skills that are most needed on both a country and international level.
Alistair Cox, Hays’ Chief Executive said: “The Hays Global Skills Index and report illustrates a major paradox in the world’s skilled labour markets. Many countries are suffering chronically high levels of unemployment, yet employers are struggling to find enough skilled individuals to fill the posts available. Ironically the world is short of the very skills that would help stimulate economic growth and thereby create opportunities for the unemployed.
“Finding the right person for a job can transform a business as well as that person’s life – this is our fundamental belief at Hays. This report and our recommendations are intended to provoke discussions and engagement from Governments and International bodies on the current global skills mismatch. Solving the issues will take time, but the challenge should not be dismissed. Our proposals would help create more jobs, stimulate economic growth and potentially provide employment opportunities for millions.”
Freida Moore +44 207 391 6652
Brian Hudspith + 44 207 379 5151
About Hays plc
Hays plc (the "Group") is a leading global professional recruiting group. The Group is the expert at recruiting qualified, professional and skilled people worldwide, being the market leader in the UK and Asia Pacific and one of the market leaders in Continental Europe and Latin America. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As at 30 June 2012 the Group employed 7,800 staff operating from 245 offices in 33 countries across 20 specialisms. For the year ended 30 June 2012:
– the Group reported net fees of £734 million and operating profit (pre-exceptional items) of £128 million;
– the Group placed around 55,000 candidates into permanent jobs and around 182,000 people into temporary assignments;
– 33% of Group net fees were generated in Asia Pacific, 36% in Continental Europe & RoW (CERoW) and 31% in the United Kingdom & Ireland;
– the temporary placement business represented 56% of net fees and the permanent placement business represented 44% of net fees;
– Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, Colombia, Chile, China, the Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Russia, Singapore, Spain, Sweden, Switzerland, UAE, the UK and the USA
About Oxford Economics
Headquartered in Oxford, England, Oxford Economics was founded in 1981 as a commercial venture with Oxford University’s business college to provide economic advice and forecasts to international organisations, governments and blue-chip companies. Since then, we have become one of the world’s foremost independent global forecasting firms, producing projections, analysis and data on 190 countries, 85 industrial sectors and over 2,500 sub-regions and cities.
Oxford Economics employs over 70 people in Oxford, London, Belfast, New York, Philadelphia, UAE and Singapore, including more than 60 professional economists and industry specialists. We specialise in global quantitative analysis and evidence-based business and public-policy advice, underpinned by a sophisticated portfolio of business forecasting services consisting of regularly updated reports, databases and models on countries, cities and industries.
Oxford Economics is renowned for its econometric-based consulting and research services, including economic impact studies, scenario analysis, business modelling, market sizing, stress testing and economic policy analysis. The firm is distinguished by the quality of its quantitative analysis, calibre of its staff and close links with Oxford University. We offer the market’s most widely-used integrated Global Economic and Industry Models.