Is it essential to bridge the skills gap?

Abstract:

Unemployment and employability are two sides of the same coin and have been an area of concern for labor sourcing managers. Graduate curricula often do not fit actual requirements and do not prepare the candidate to face authentic work scenarios. Organizations are increasingly focusing on retaining talent to prevent a shortage of skilled talent; this is often accompanied by higher costs. This article provides an overview of the skills gap across the globe and how employers have been mitigating the risk of talent gaps in the workplace.

Introduction

The skills gap has become a growing problem for employers around the world. The primary reason for the demand-supply gap of talent can be attributed to the fact that educational institutions’ curricula are often out of sync with the job market. This has affected industries from construction to finance, with candidates lacking the required skills. Meanwhile, those with desired capabilities or experience are facing competition from their peers, putting pressure on wages and benefits. Young people, especially in Europe, are having difficulty finding work. A recent UN study found that youth unemployment has stabilized around the world at 13 percent, but this does not give a true picture of the actual problem. Almost 43 percent of the world’s youth labor force is either unemployed or employed, yet still suffering from poverty. These two challenges are forcing employers to modify their workforce planning strategy.

Millennials and Generation Z:

The advanced workforce The current generation is moving away from science, technology, engineering and mathematics (STEM) fields, which are more in demand in the job market. Competition has increased among employers to secure candidates with the relevant skillsets, and candidates without them are struggling to find jobs.

The rise of a mobile, international workforce is proving a challenge for young job seekers. Nowadays, a number of skilled jobs can be done remotely, and developed economies are focusing their education systems on STEM skillsets.