A major commercial crisis is coming, and it could cost nations and businesses $8.5 trillion in unrealized revenue by 2030 – equivalent to the combined GDP of Germany and Japan. The threat: chronic skilled talent shortages. According to Korn Ferry, it will impact growth for businesses and nations as soon as 2020. By 2030, there will be a global talent shortage of 85.2 million skilled workers, with the knowledge-intensive financial services industry one of the hardest hit. In this session, we learned what this means for the financial services industry, what advisor firms can do to prepare, and examples of what industry leaders have done to mitigate the threat.
- David Satler
- According to the latest research from Korn Ferry, the future of work is human, and we are facing a global talent crunch that will grow from a 3% labor deficit in 2020 to a projected 11% labor deficit by 2030. In the next 19 years, 10,000 baby boomers will retire EACH day. And younger generations are looking for different things from their work and from employers than older generations.
- Globally, Korn Ferry is forecasting a deficit of 85.2 million workers and $8.5 trillion in economic losses. The U.S. is likely going to see the most alarming deficit. Across the Americas, we could see a labor skills shortage of 23.9 million with unrealized output of $2.37 trillion by 2030. Similar shortages of 14.3 million workers and $1.9 trillion are anticipated in the EMEA countries, with Asia-Pacific countries facing more significant labor shortages of close to 47 million workers and $4.2 trillion.
- Financial and Business Services industries are anticipated to be among the hardest hit globally, with a forecasted labor skills shortage of 10.7 million workers by 2030, an unrealized output of $1.3 trillion.
- The U.S. can also expect a surplus of mid- and low-skilled workers by 2030, providing companies the opportunity to boost skills and redeploy people.
- It is critical for companies to take action to address the coming shortfall by developing a plan to prepare their work force. Consider how you can be more agile in your response to market changes. Look at the talent you have and consider how you might retrain, upskill, and redeploy, creating your own talent pipelines.
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