There has been a lot of news recently about the lack of talent available to employers. The ManpowerGroup just published their 2016 Talent Shortgage Survey where, as a region, Asia Pacific reported the greatest degree of hiring difficulties, particularly in Japan, Taiwan and Hong Kong. A new report has revealed that Asia’s emerging economies face severe skill shortages. In the near future, countries will encounter a shortage of skilled labour due to less-than-adequate skills-based education and changing workforce demographics.
The report ranked 12 economies in Asia on a scale of 1 to 7 to indicate the level of skills challenges they face. Malaysia ranks highest among the emerging economies, with a 5, while Singapore and Hong Kong top the overall list with a 6.2 and 5.6, respectively.
Although advanced economies such as Singapore, Hong Kong, South-Korea, and Japan score relatively high when it comes to education levels, they in turn will be impacted by a decrease in labour supply due to a decline in working age population, leaving them with a potential skill shortage as well.
The report, “Deciphering Labour and Skill Shortages in Asia with Workforce Analytics,” was published by the Workforce Analytics Institute (WAI), a partnership between The Conference Board and Mercer. The report looked at factors such as country demographics, labor supply, and compensation in both advanced and emerging markets across the region; noting that Malaysia ranks highest among the emerging economies, with a 5, while Singapore and Hong Kong top the overall list with a 6.2 and 5.6 respectively. According to the report, skilled labor is in high demand across Asia, but workforce preparedness varies widely across the region. The report considers the proportion of educated individuals within an economy to be a way to understand skill preparedness.