PRESS RELEASE
For release 25 September 2014
Global economy faces perfect talent storm
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Recovery puts increasing pressure on global labour markets
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Developed economies face greatest talent shortages as growth accelerates
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Talent mismatch will result in jobs going unfilled and business growth stalling
The global talent crisis continues to worsen as economic growth places increasing pressure on skilled
labour markets. The challenges are particularly acute in developed economies such as the US, Germany
and the UK which are now returning to pre-crisis levels.
In many markets, the labour available simply does not meet the skill requirements of employers. Talent
mismatch – the gap between what skills people can offer and what employers are looking for – continued
to worsen this year, most sharply in Denmark, Poland and Italy. In all countries that faced particularly
high levels of talent mismatch last year including the US, Spain, Portugal, Japan and the UK, the
situation is even more serious this year.
These are the findings of the Hays Global Skills Index 2014, a report published today by Hays plc, the
leading global professional recruiting group, produced in collaboration with Oxford Economics. The
report, titled ‘The Perfect Talent Storm’ is based on an analysis of professional employment markets
across 31 major global economies, highlighting the dynamics of the world’s skilled labour market.
This is the first year since the launch of the Index in 2012 that virtually all of the 31 countries featured are
set to see positive economic growth. This growth is leading to increased demand for skilled workers,
although the global economy’s ability to supply these in the right place at the right time remains
constrained.
The report concludes that things are likely to get worse before they get better. Labour market
participation – the proportion of people active in the labour market – actually fell across major global
economies, meaning that many people are being left behind by labour markets and global growth.
Despite governments around the world committing to more business-friendly regimes and less red tape,
the majority of countries saw no improvement in labour market flexibility over the past year.
In order to avoid a global talent crisis derailing growth, both governments and the business community
need to take action. In order to tackle the problem of skills shortages in the long term, education policy
must be aligned more closely with the needs of employers. Equally businesses themselves must take
responsibility for developing locally their future talent pipelines. Short-term measures to improve labour
market flexibility must also be considered to better allow businesses to access the key skills they need.
Commenting on the findings of the report, Hays’ Chief Executive Alistair Cox said: “The Hays Global
Skills Index makes it very clear that we now have the conditions for a perfect storm across global labour
markets.
“This is the first year since we launched the Hays Global Skills Index that we are seeing evidence of
economic good news across the board. The flip side, however, is that labour market pressures are
building. Demand for skilled workers is outpacing supply. If this is not addressed, we will see
opportunities slip away from individuals, businesses and entire nations as jobs go unfilled and business
growth stalls.
“There are no quick fixes and conditions in global labour markets will probably get worse before they get
better, but we have to act now. Governments must take the long-term view and ensure immigration
policy and employment legislation is sensitive to employer needs. Businesses, in the meantime need to
take responsibility for developing the future workforce and work hand-in-hand with education providers to
develop tomorrow’s talent pool.”
Hays Global Skills Index key findings:
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As the global recovery continues and more skilled jobs are being created, the talent crisis will
continue to worsen
Companies are struggling to find employees with the necessary skills, particularly in high-skill
occupations such as IT and engineering
Developed economies are experiencing the most severe labour market pressures, including the
US, Germany, France and the UK. Meanwhile developing countries – such as Brazil, Mexico and
India – have seen conditions ease
In 2014, wage pressure is evident in a number of labour markets around the world. Talent
mismatch levels and labour market participation have also worsened
Governments and businesses must work together to find new solutions, to better develop local
workforces with the skills industry needs and thereby support further economic growth
Notes on methodology
The Hays Global Skills Index provides a score for each country of between 0 and 10 which measures the
pressures present in its labour market. The score is calculated through an analysis of seven equally
weighted indicators, each covering different dynamics of the labour market, such as education levels,
labour market flexibility and wage pressures.
An overall score of above 5.0 indicates that the labour market is ‘tighter’ than normal. A score below 5.0
indicates the market is ‘looser’ than normal. Within these overall scores, however, the scores attributed
to each of the seven indicators can vary significantly, highlighting the different dynamics and pressures
faced by each country.
- ENDS Contacts
Freida Moore
T: +44 (0)20 7391 6652
M: +44 (0)7703 750050
E: freida.moore@hays.com
Maria Jennings
T: +44 20 7861 2514
M: +44 7887 050 884
E: MJennings@bell-pottinger.com
About Hays
Hays plc (the "Group") is a leading global professional recruiting group. The Group is the expert at
recruiting qualified, professional and skilled people worldwide, being the market leader in the UK and
Asia Pacific and one of the market leaders in Continental Europe and Latin America. The Group operates
across the private and public sectors, dealing in permanent positions, contract roles and temporary
assignments. As at 30 June 2014 the Group employed 8,237 staff operating from 237 offices in 33
countries across 20 specialisms. For the year ended 30 June 2014:
– the Group reported net fees of £724.9 million and operating profit (pre-exceptional items) of £140.3
million;
– the Group placed around 57,000 candidates into permanent jobs and around 212,000 people into
temporary assignments;
– 24% of Group net fees were generated in Asia Pacific, 42% in Continental Europe & RoW (CERoW)
and 34% in the United Kingdom & Ireland;
– the temporary placement business represented 59% of net fees and the permanent placement
business represented 41% of net fees;
– Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, Colombia, Chile,
China, the Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, India, Ireland, Italy,
Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Russia,
Singapore, Spain, Sweden, Switzerland, UAE, the UK and the USA
About Oxford Economics
Oxford Economics is one of the world’s foremost independent global forecasting and research
consultancies, renowned for its econometric-based consulting and extensive research services. Founded
in 1981, Oxford Economics was originally formed as a joint, commercial venture with the business
college of Oxford University, Templeton College. Since its foundation, Oxford Economics has grown into
an independent provider of global economic, industry and business analysis, headquartered in Oxford,
UK.
Oxford Economics is a world leader in quantitative analysis, going deeper and further than other
economic advisory firms, in helping its clients to fully assess the opportunities and challenges they face
for future strategy and direction. It specialises in global quantitative analysis and evidence based
business and public-policy advice, underpinned by a sophisticated portfolio of business forecasting
services consisting of regularly updated reports, databases and models on countries, cities and
industries.
For more information, visit www.oxfordeconomics.com