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MEETING THE HUMAN
RESOURCE CHALLENGES
Nisha Arunatilake
Institute of Policy Studies, Sri Lanka
July, 2013
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The human resource challenge
• Globalization
• Population
Ageing
Reducing
LF
• Technological
change
Demand
for better
skills
Brain
drain
Demand
for highly
skilled
workers
• Knowledge
based
economy
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POPULATION AGEING
Labour force is ageing. LF growth is slowing down.
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The Sri Lankan Labour force is ageing
Employed - Female (%)
Employed - Males (%)
60
60
50
50
20-24
40
20-24
40
25-29
30
20
30-39
10
25-29
30
20
30-39
10
40+
0
1990
1995
2000
2006
2011
40+
0
1990
1995
2000
2006
2011
DCS, LFS
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Labour Force is growing slower, and will soon decline
Source: Calculated using UN population projections and LFS data
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Stock and flows of Labour Force
Children
reaching
working age
Immigrants
Foreign
Workers
Deaths
National Stock of
Human Resources
Emigrants
Not in the
labour force
(Youth,
Females,
retirees)
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GLOBALIZATION AND
TECHNOLOGICAL CHANGE
Increasing demand for skills … not matched by supply
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Technological changes have increased the
demand for skilled workers
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The demand for skills workers and unskilled
workers are increasing
Source: Yidan Wang, 2012; Note: Advanced Economies
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Sri Lanka …
Source: based on LFS 2011
IT sector – IT work force
2010 demand
50,000
2006 to 2009
4,200 new entrants each year
IT graduates remaining
in the country with soft
skills
Demand – 3,970
IT graduates – 4,473
Source: ICTA, 2011, National ICT workforce survey
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Demand for Soft Skills
Vacancies by Skills and Occupations (No.)
1200
1000
800
600
400
200
0
Managers
Professionals
Technicians and Associate Professionals
Clerks
Service and sales workers
Source: Based on LMI, 2009
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HIGHLY SKILLED
WORKERS
Low stock. Low quality. Under utilization.
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Global battle for brains …
“UK needs lower taxes to attract and
retain highly skilled workers”
“What policy changes should be enacted to
ensure that America retains and attracts the
world’s top talent?”
“The Battle for Brains: How to Attract Talent”
- EU
“The issue: attracting and selecting the
“best and brightest” - UK
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Human Resources in Science and Technology
Grps – People qualified to be S&T workers
S&T Employees - unqualified people working as S&T workers
S&T Grap-loyees – qualified people working as S&T workers
Source: Towers of learning and IPS; note: per cent of total population
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Training opportunities are low for adults
Current education status (2009)
30-34
25-29
20-24
15-19
0%
20%
General education
Vocational training
40%
University
Not attending
60%
80%
100%
Other education
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S&T graduates are low
Sri Lanka (2008)
Total = 11,941
Singapore (2009)
Arts
Engineering…
Management
Humanities and…
Science
Natural, Physical…
Medicine
Business and…
Total = ll,947
IT
Engineering
Accountancy
Agriculture
Architecture and…
Computer…
Law
Commerce
Medicine
Architecture &…
Health sciences
Para-medical…
Fine and applied…
Law
Mass…
Food Science
Services
Dental Science
Dentistry
Veterinary…
0
0
2000
4000
6000
1000
2000
3000
4000
5000
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Stock and flows of Highly Skilled workers
Qualified Youth
Qualified
Immigrants
Qualified Mature
Entrants
Emigrants
National Stock
of Highly
Skilled
Workers
Deaths,
retirements
Unqualified
people
Highly skilled workers:
Those working in a S&T field needing a university degree or high
level vocational training
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HUMAN RESOURCE
CHALLENGES
Maximizing labour resources, improving skills,
producing and retaining S&T workers, improving
utilization of S&T workers.
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Maximizing labour resources
Flexible terms of
work
Smoother school
to work transition
Continuous
training
opportunities
Improve participation
of females and youth
Better child care
services
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Improving skills
Improve
quality of
education
Continuous
training
Globally
recognized
training
Soft skills
training
Improve
relevance of
education
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Increasing highly skilled workers
Improving living
standards
Better
remuneration
Training
opportunities for
older workers
Expanding tertiary
education
Improving the utilization of S&T workers
Source: World Economic Forum, The Global Competitiveness Report, 2011-2012
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