A Global Talent Shortage: Myth or Reality?

Globally, employers within the science, technology, engineering, and mathematics (STEM) fields desire to hire skilled talent, but have difficulty locating and attracting it. In short, they complain of a talent shortage. But is this assessment accurate? Do the world’s labor markets suffer from a shortage of STEM skills or rather a skill mismatch, with a shortage in specific regions while other regions experience an overabundance of skilled workers? Consulting firms like Price Waterhouse Coopers and Manpower provide empirical evidence in favor of the talent shortage. These firms’ aggregate survey data show that the “talent crunch” slows innovative capacity and profitability. Then again, other firms like Accenture conclude that no such shortage exists. Instead, the key is knowing how to locate and access talent to circumvent this location mismatch. Accenture foresees a rapid increase in STEM talent from developing economies like Brazil and China in the coming decade. Developed countries like Norway that heavily rely on STEM talent are taking the matter into their own hands. The Norwegian government is designing programs to attract more students to STEM disciplines and organizes events to attract international labor. Norwegian companies provide incentives to their employees to recruit skilled employees through their social networks. Perhaps national strategies are some of the most effective ways to address this important labor issue. In addition, labor market intermediaries such as Monster and Experia have emerged to connect global talent to markets where their skills are needed. The perception of a skills shortage exists and is affecting global business’s current strategies and future plans. Whether a skills shortage truly persists or not, the future requires a workforce transcending national boundaries, where talent and jobs are made geographically compatible.