The clever folk at McKinsey have just released an interesting report looking at labour markets!
“A Labor Market that Works: Connecting Talent with Opportunity in the Digital Age” acknowledges the historic challenges faced by the labour market but argues that with advances in technology, we are already seeing an improvement in the global alignment between specialist skills & future talent and employer needs. The report is certainly worth a read.
Some highlights for me include the fact that 30 to 45% of the global working-age population (that’s hundreds of millions of people) are unemployed, inactive in the workforce, or working only part-time. The report moots that the use of various online talent platforms will rapidly become more important to help hire and manage talent within organisations for a number of reasons, but of particular interest is that it would create transparency around which skills are being sought by employers which would in turn enable young people to make better informed educational choices. That in itself has huge implications for the global tertiary education sector in which currently $89 billion is spent annually.
McKinsey have calculated that with better alignment between the global labour market and employers using online talent platforms to identify and recruit candidates, not only would HR costs be reduced by 7%, but that 540 million people could potentially benefit and that $2.7 trillion in annual global GDP could be generated.