Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
Skills Gap Costs Productivity, Revenue Worldwide
CHICAGO -- The growing deficit of skilled labor needed to fill in-demand jobs is causing a drag on employers across the globe, finds a CareerBuilder survey. A significant number of employers in the 10 largest world economies said that extended job vacancies have resulted in lower revenues and productivity and the inability to expand their businesses.
Employers in China were the most likely to report having positions they cannot fill and corresponding negative effects on their company performance, according to CareerBuilder. Russia houses the largest percentage of employers reporting a revenue shortfall tied to extended job vacancies, while the United States is among those most likely to report a productivity loss. Japan ranked high among those who said the inability to find skilled talent has impeded expansion of their businesses.
"The inability to fill high-skill jobs can have an adverse ripple effect, hindering the creation of lower-skilled positions, company performance and economic expansion," said Matt Ferguson, CEO of CareerBuilder. "Major world economies are feeling the effects of this in technology, health care, production and other key areas. The study underlines how critical it is for the government, private sector and educational institutions to work together to prepare and re-skill workers for opportunities that can help move the needle on employment and economic growth."
Employers in the BRIC countries (Brazil, Russia, India and China) were the most likely to report challenges in recruiting high skill labor with more than half of employers stating they currently have positions for which they can't find qualified candidates. China led with 74% saying qualified candidates can't be found, followed by Brazil (63%) and Russia (57%). In the United States, 28% of respondents said the same.
The BRIC nations are hiring at a faster rate and have the highest percentages of employers who plan to add full-time, permanent staff this year.
A large percentage of employers in the top 10 economies said their companies have been hurt by their inability to fill job vacancies, citing less effective business performance, lower quality work, lower morale and higher employee turnover. Following the BRIC nations, employers in Italy and France were the most likely to report this. Again, China had the highest negative implications at 81%, followed by Brazil and Russia (74% each) and India (69%). The United States ranked last at 38%.
Of employers who have suffered from the extended vacancies, China reported the highest loss in productivity and revenue and stagnant business growth at 65%, followed by the United States at 41%. The greatest loss of revenue is in Russia at 29%, followed by China and Japan at 26% each, Germany (24%), India (22%) and the United States (21%).
The impact on inability to grow their business was highest in China (33%), then Japan (25%), France (24%) and the United States and United Kingdom (22% each).
Not surprising, technical fields -- namely information technology and engineering -- dominated the areas where employers said they have the most difficulty recruiting skilled talent. There were notable challenges in recruiting for high-end sales positions in the United States and Europe, and recruiting for research and development jobs in India, China and Japan. Filling production jobs is a bigger challenge in Brazil, Russia and western Europe.
Published by The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our free daily email headlines and to our twice-monthly print edition.