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Hays Report Shows Chronic Global Skills Shortages Despite High Unemployment

Tokyo, Nov 20, 2012 - (ACN Newswire) - The world is facing an economic paradox in which many countries are witnessing high and rising unemployment, whilst still suffering from chronic skill shortages in crucial professions as a result of labour market inflexibility, global competition for talent driving up salaries and poor or inadequate education and training.

These are the findings of a major new report published by recruiting experts Hays and produced in collaboration with Oxford Economics. The Hays Global Skills Index 2012 represents a unique and insightful barometer of the market dynamics and availability of professional skills in 27 key economies around the world.

The Hays Global Skills Index creates a score for each country between 0 and 10 on the constraints and frictions being faced by its market for skilled labour. This is calculated through an analysis of seven components, covering areas such as education levels, labour market flexibility, and high-skill wage pressures.

A score above the mid-point of 5.0 suggests that employers are witnessing difficulties finding the key skills they need and are suffering market friction, whilst a score below 5.0 indicates a lax labour market in which there are no major constraints on the supply of skilled labour. Within these overall scores however, the scores attributed to each of the seven components can vary significantly, highlighting the different dynamics and pressures faced by each country.

The Index shows that each country surveyed faces specific issues in its skilled labour force. 16 of the 27 countries are currently suffering some degree of labour market tightness, despite the global economic slowdown. This drives wage inflation and leaves many valuable roles unfilled, thereby constraining economic growth. The worst affected are Germany and the United States, where there are considerable skill shortages despite high unemployment levels. At the other end of the scale, most of the countries with slack labour markets are in the Eurozone, where countries like Italy and Belgium see the lowest levels of friction and constraints in terms of hiring highly skilled professionals.

To combat the mismatch of skills availability and demand, the Hays report proposes a long-term three-point action plan for policymakers. First, governments should focus on the skills their economies lack and take appropriate measures to attract the relevant people through targeted immigration. This would in many cases require an overhaul of existing work visa arrangements. Second, employers should be offered fiscal incentives to increase their provision of relevant training. Third, governments should work with employers and educational authorities to implement a series of measures and incentives to persuade young people to acquire the skills that are most needed on both a country and international level.

Alistair Cox, Chief Executive of Hays said: "The Hays Global Skills Index and report illustrates a major paradox in the world's skilled labour markets. Many countries are suffering chronically high levels of unemployment, yet employers are struggling to find enough skilled individuals to fill the posts available. Ironically, the world is short of the very skills that would help stimulate economic growth and thereby create opportunities for the unemployed.

"Finding the right person for a job can transform a business as well as that person's life - this is our fundamental belief at Hays. This report and our recommendations are intended to provoke discussions and engagement from governments and international bodies on the current global skills mismatch. Solving the issues will take time but the challenge should not be dismissed. Our proposals would help create more jobs, stimulate economic growth and potentially provide employment opportunities for millions."

To see the full Hays Global Skills Index 2012 and report, please go to www.hays-index.com/

Hays, the world's leading recruiting experts in qualified, professional and skilled people.

About Hays

Hays is the leading global specialist recruiting group. It is the expert at recruiting qualified, professional and skilled people worldwide.

Hays Specialist Recruitment Japan KK ("Hays") is the largest foreign recruitment company in Japan and operates across the private sector, dealing in permanent positions, contract roles and temporary assignments. Hays has been in Japan for more than a decade, and boasts a track record of success and growth.

Hays is the only foreign recruitment company in Japan to operate specialist business units composed of professionals with experience and expertise in the sectors they cover. Hays Japan's thirteen specialisms span Accountancy & Finance, Banking, Finance Technology, Human Resources, Hays Resource Management, Information Technology, Insurance, Legal, Life Sciences, Office Professionals, Property, Sales & Marketing and Supply Chain.

Hays is also the only foreign recruitment company in Japan to operate three local offices, serving the Kanto region from Akasaka and Shinjuku, and Kansai from central Osaka. Hays Japan is the local representative office for Hays plc, which is a global company with more than 7,800 staff operating from 245 offices across 33 countries.

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.

Source: Hays

Contact:

Keiko Asakura
Hays Japan
Marketing Manager
+81 3 3560 2813
Keiko.Asakura@hays.co.jp




Copyright 2012 ACN Newswire. All rights reserved.

About ACN Newswire
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