Alarming global employment shortages revealed

A new report by Boston Consulting Group (BCG) has revealed some alarming trends for the 25 major economies, including Australia, that represent over 80 per cent of the total world GDP.

The report entitled “The Global Workforce Crisis: $10 Trillion Risk” is a sobering study of workforce trends to 2030. The trends for individual countries vary widely and each will have a direct impact on Australia’s own growth.

In Australia, where we see unemployment rising, it is noteworthy to see that despite BCG’s prediction of GDP growth of above 3 per cent, we will “experience a severe labour shortage by 2030”.

Similar shortages will occur in China, perhaps resulting in reduced growth, while India’s demand for labour will exceed supply until 2030, thereby helping growth until that time.  

In Europe, all countries except Italy show a labour shortage, while Asia Pacific is mixed, as is the Americas. However, the report shows that by 2030, most countries will face labour shortages.

It calculates the value of GDP lost as a result of these shortages as US$10 trillion. 

While the report does not make recommendations for rectifying the problem, it suggests four fundamental actions:

  • Boost productivity by improving employability of underqualified and less educated workers.
  • Increase workforce participation by encouraging women, raising retirement age, jobs for the elderly, increased working hours.
  • Increased immigration – limited to those sources with workforce surpluses.
  • Higher birth rates.

For a full copy of the report please click here