October 15, 2012
The World at Work: Jobs, Pay, and Skills for 3.5 Billion People
A new report issued by the McKinsey Global Institute highlights a number of striking concerns in global workforce issues.
The report noted that in advanced economies, demand for high-skill labor is growing faster than supply, while demand for low-skill labor remains weak and income inequality is growing as lower-skill workers experience unemployment, underemployment, and stagnating wages. Based on current trends in population, education, and labor demand, the report projects that by 2020 the global economy could face the following hurdles:
- A shortage of 38 million to 40 million fewer workers with a post secondary education
- 45 million too few workers with secondary education in developing economies
- A surplus of 90 million to 95 million low-skill workers
If these trends continue, the report notes that there will be far too few workers with the skills needed to drive a high-productive economy and far too few job opportunities for low-skill workers. See the following website to view the full report.