BOSTON, MA--(Marketwire - January 7, 2011) -
Industries and countries worldwide will require major increases of highly educated people in their workforces to sustain economic growth, argues a new report prepared by the World Economic Forum in collaboration with The Boston Consulting Group (BCG). The report, Global Talent Risk -- Seven Responses, analyzes projected talent shortages by 2020 and 2030 in 25 countries, 13 industries, and nine occupational clusters. The report concludes that:
If left unaddressed, talent scarcity will become a threat to sustained growth, particularly in knowledge-based economies. "Human capital has replaced financial capital as the engine of economic prosperity," said Hans-Paul Bürkner, BCG's president and chief executive officer.
The roots of the global talent risk include the widely uneven quality of educational systems, erratic employability of the workers in the Southern Hemisphere, and demographic changes in the Northern Hemisphere, where retirement of the baby boomers will result in an unprecedented talent deficit. In Canada, Germany, the United Kingdom, and the United States, expected immigration and birth rates will not offset the workforce losses caused by aging populations. Today, foreign-born workers with university degrees or equivalent qualifications make up just 2 percent of the European labor market, compared with 4.5 percent in the United States and nearly 10 percent in Canada. Improved education and training must go hand in hand with increased labor migration.
"The global problem is no longer a mere talent mismatch. The scale of the predicted talent gap requires concerted action, starting with -- and going well beyond -- removing barriers to the mobility of talent," said Piers A. Cumberlege, senior director, head of partnership, World Economic Forum.
The report proposes seven core responses to global talent risk:
Members of the Global Agenda Council on Skills and Talent Mobility, as well as more than 100 high-level experts and practitioners, contributed to the recommendations in the report and to the talent mobility dialogue hosted by the World Economic Forum online and at meetings in Brussels, Doha, Davos-Klosters, Dubai, Montreal, New Delhi, and New York in 2009 and 2010.
The World Economic Forum Annual Meeting 2011 in Davos-Klosters will seek to catalyze a pragmatic, result-driven action focused on effective sharing of good practices.
For more information about the Global Talent Risk -- Seven Responses report, please contact:
About The World Economic Forum
The World Economic Forum is an independent international organization committed to improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas.
Incorporated as a not-for-profit foundation in 1971 and headquartered in Geneva, Switzerland, the Forum is tied to no political, partisan, or national interests (www.weforum.org).
About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 71 offices in 41 countries. For more information, please visit www.bcg.com.