Talent Shortage is Real, May Cost Trillions by 2030: Study

The global talent shortage is worsening by the day. By 2030, as many as 85.2 million jobs will go unfilled, resulting in a staggering US$8.452 trillion in unrealized annual revenue, according to a study by US management consulting firm Korn Ferry.

The United States alone could miss out on $1.748 trillion in revenue due to labor shortages, or roughly 6% of its entire economy.

It is true that robots are increasingly taking over our jobs, but most of them are repetitive ones.

At the same time, businesses of all stripes are embracing high-tech solutions to remain competitive. As technology advances, businesses will need experienced workers to leverage these advanced tools.

“Technology cannot deliver the promised productivity gains if there are not enough human workers with the right skills. This has set the scene for a global talent crunch,” the report pointed out.

As part of the survey, Korn Ferry assessed 20 major economies, including Brazil and Mexico.

Considering the report, the US could face a deficit of 6 million workers, and Brazil could have shortages of thrice as large.

However, India is an exception. The Asian country is projected to have a skilled-labor surplus of around 245.3 million, owing mainly to its vast supply of working-age citizens and government programs to boost workers’ skills.

“Unless governments and organizations can develop enough highly skilled workers, a talent crunch threatens the rosy forecasts for technological progress and its accompanying economic growth,” the report concluded.