A skilled talent shortage is looming by the year 2030
In a recent study published in May 2018, the American recruitment firm Korn Ferry revealed that France could lack 1.5 million highly skilled workers by 2030. This deficit will create nearly €175 billion in unrealized revenue (equivalent to 6.5 percent of its GPD), with financial services, technology, media and telecommunications, as well as the industry sector, being the most affected by this shortage which is actually far from being limited to France.
A global skills shortage phenomenon
French companies are fighting to find staff members that fully meet their needs. This finding was confirmed by an INSEE study published in October. The latter indicates that 42 percent of industrialists find it difficult to get hold of the right skills they are looking for. Korn Ferry also states that France is one of the most affected countries by this phenomenon. According to the American firm, much of the shortage is a result of the economic crisis that has led many companies to push into the background the training of their employees, preferring instead to focus on innovation, digital transition and cost optimization.
France is obviously not an isolated case since many other countries are to face the same phenomenon. The global skilled talent shortage is estimated at more than 85 million people that could result in nearly 7,000 billion euros in unrealized annual revenues by 2030. Korn Ferry’s study goes even further by estimating that this talent shortage threatens to deprive some countries of their monopoly position in certain sectors: England for its leadership in financial services, the United States in technology and China in manufacturing.
Time to put employee training at the heart of the company’s concerns
Gérald Bouhourd, managing partner at Korn Ferry, considers that companies will not sit idly in the face of this shortage. “Far from being obsessed with tax issues, companies are setting up and creating jobs where skills and talents are found,” he says. Companies must integrate “innovations that are not only technological but also managerial in order to respond to the problem of a geographically fragmented production process”.
On the other hand, governments, higher education institutions and businesses must rely on training to bridge the widening gap between the school system and the labor market. In the meantime, more and more employers are focusing on transversal skills, favoring candidates that would be capable of working in many trades during their career.
In light of the upheavals in the job market, the American Business School of Paris offers internationally oriented training programs that are based on the American education system. The objective is to train highly qualified professionals capable of meeting the most pressing needs expressed by employers, both in France and abroad.