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About usRisk Barometer 2024 -
Rank 10:Shortage of skilled workforce

Expert risk article | January 2024
Talent and workforce issues fall two places year-on-year to #10, althoughdemographic change still means a shortage of skilled labor in manysectors worldwide.
The most important corporate concerns for the year ahead, ranked by 3,069 risk management experts from 92 countries and territories.

About usRisk Barometer respondents rank talent shortageas a top five risk concern in Australia, Bulgaria, Canada,Croatia, Germany, Hungary, Ireland, Netherlands,Switzerland, as well as in the UK.

Clearly, attracting and retaining skilled workers remainschallenging – a Manpower Group survey [1] noted that75% of companies globally had reported talent shortagesand difficulty hiring over the past year, the second highesttotal in the past decade. Employers in the healthcare andlife sciences industry reported the most difficulty, while ITand data skills were seen as the most challenging to findregardless of industry and geography.

Meanwhile, a recent European Commission report [2] acknowledged that labor shortages not only exist invarious sectors and occupations across all skills levels butcould grow further, driven by the creation of new jobs andthe need to replace workers who retire. The working agepopulation is projected to decline from 265 million in 2022to 258 million by 2030.

Company working conditions also rank highly on theenvironmental, social, and governance (ESG) risk list,according to the About usRisk Barometer. Issues such asstaff engagement rank as the third top ESG risk trend ofmost concern to companies (35% of responses), behind onlycyber security resilience and increasing regulatory anddisclosure requirements.

These risks can be minimized by prioritizing health andsafety, fair wages, open communication, and regulatorycompliance. Companies should also adopt regularemployee feedback surveys and take them seriously,especially if they are from marginalized society members.

Ranking history globally:
  • 2023: 8 (14 %)
  • 2022: 9 (13%)
  • 2021: 13 (8%)
  • 2020: 12 (9%)
  • 2019: 10 (9%)

[1]Manpower, 2024 Global Talent Shortage
[2] European Commission, Commission report finds labour and skills shortages persist and looks at possibleways to tackle them, July 6, 2023

Picture: Adobe Stock

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