Talent Deficit May Hit Major APEC Economies

Asia Pacific faces an imminent labor shortage of 12.3 million workers by 2020, and if not addressed it could have a significant impact on major APEC economies by 2030, says a report.

According to Korn Ferry research, talent shortage is already a major issue and its impact is so significant that companies are increasingly adopting automation, PTI reported.

Interestingly, India is the only economy among the 20 studied with a potential talent surplus, an excess of 245.3 million workers by 2030.

As per the report, Asia Pacific faces an imminent labor shortage of 12.3 million workers by 2020, which would rise to 47 million by 2030.

Two major economies China and Japan are likely to witness significant talent deficits with a combined deficit of 3.2 million workers by 2030, putting the region's global dominance at risk.

"Companies must work to mitigate this potential talent crisis now to protect their future. Left to run its course, this shortage will severely impact the growth of markets across Asia Pacific," it noted.

Sector-wise, financial and business services will be hardest hit across the region, with a deficit of 3.7 million workers by 2030.

"The impact of the talent crunch is so significant that it is accelerating automation and increasing use of robotics," the report said, adding that CEOs believe technology will be their chief value generator in the future of work but not at the cost of human capital.

"Technology cannot deliver the promised productivity gains if there are not enough human workers with the right skills. While technology will continue to reshape the future of work, the acute demand for workers with the right skills calls for a partnership of people and technology to maximize the performance of both of these assets to generate value," the report said.

Meanwhile, the progression of digitization as well as changing demographic trends are some of the biggest challenges in the Swiss labor market, according to a study from the Adecco Group Switzerland and the University of Zurich.

The study focuses on skills shortages in Switzerland and found that, with the rapid progression of digitization as well as an ageing workforce, Switzerland could face a labor shortfall of around half a million workers by 2030.