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𝗧𝗵𝗲𝗿𝗲 𝗮𝗿𝗲 𝗺𝗼𝗿𝗲 𝗷𝗼𝗯𝘀 𝗮𝘃𝗮𝗶𝗹𝗮𝗯𝗹𝗲 𝘁𝗵𝗮𝗻 𝗽𝗲𝗼𝗽𝗹𝗲 𝘁𝗼 𝗳𝗶𝗹𝗹 𝘁𝗵𝗲𝗺 𝗶𝗻 𝗺𝗼𝘀𝘁 𝗼𝗳 𝘁𝗵𝗲 𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗲𝗱 𝘄𝗼𝗿𝗹𝗱. 𝗧𝗵𝗲 𝘀𝗸𝗶𝗹𝗹𝘀 𝘀𝗵𝗼𝗿𝘁𝗮𝗴𝗲 𝗶𝘀 𝗱𝗶𝗮𝗯𝗼𝗹𝗶𝗰𝗮𝗹 𝗳𝗼𝗿 𝗺𝗮𝗻𝘆 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗮𝗻𝗱 𝗺𝗮𝗻𝘆 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗲𝘀.

As I mentioned in yesterday’s post, I am currently fielding 2 questions from clients in Australia and the US about the skills shortage.

The first…

Now that the borders are open in Australia how long will it be before our skills shortage abates?”

I answered this yesterday. https://lnkd.in/dFaXdMd7

I’ll address the second question today.

The upcoming US recession will surely help the skills shortage (and put realign candidates’ expectations), right?”

To answer this we need to go back in time. You’ve undoubtedly heard the term “The War for Talent” but do you know where that came from? It was a report from McKinsey & Company about the upcoming global skills shortage – written in 1997!!!

So the skills shortage is a challenge that we’ve seen coming for a very very long time. Korn Ferry (by memory but it may have been Manpower, don’t quote me on the source but the numbers are accurate) wrote in 2014(ish) that by 2025 we were expecting a global skills shortage of up to 85 million people (and 20 million won’t have the right skills to be employed as technology changes the shape of our roles.

So, if the US (and/or the rest of the world) goes into recession will the skills shortage go away? Maybe – in certain industries – for a period of time.

But this is part of a larger, global trend that is due to declining birth rates, the declining workforce participation rates (in some countries) and the reshaping of roles due to technology, as I mentioned above.

So long term, we need to settle in for this to be the ‘new normal’.

And since demand for people will outweigh the supply over at least the mid term, and due to what I call the ‘Rise of the Empowered Workforce’ candidates may become less choosy in the short term should the economic downturn occur, but in the long term – it’s a sellers market.

So, how do we overcome this skills shortage? There are only 4 ways:

Retain the ones you have

Set yourself apart from your talent competitors by having a better story and telling it well

Think differently about how you fill roles

Use all available sourcing strategies and use them well

𝗡𝗲𝗲𝗱 𝗵𝗲𝗹𝗽 𝘄𝗶𝘁𝗵 𝗮𝗻𝘆 𝗼𝗳 𝘁𝗵𝗲𝘀𝗲? 𝗗𝗠 𝗺𝗲. 🙂