The Korn Ferry Global Talent Crunch Study indicates potential talent deficit of 47 million workers in the APAC region by 2030. While countries like China and Japan will have a labor deficit of 6,739,663 and 13,756,592 workers by 2030 respectively, India is the only country which will have a labor surplus and that too of 245,294,246 workers. 

Industries, where the talent surplus will be the most visible in India, include the financial services with a surplus of 1.1 million, technology, media, telecommunications (TMT) at 1.3 million and manufacturing at 2.44 million of extra manpower in 12 years.

 “It’s no secret that while India has a surplus of talent, we must deal with the twin challenges of employability and job creation," said Bhavna Sud, Client Partner, Korn Ferry India.  

 

"The government, as well as industry, have made significant efforts to address both issues through programmes like ‘Skill India’, but we will have to do more to create a competitive advantage of the surplus manpower we have. If left unchecked, the talent surplus will add to our woes of jobless growth and unemployment. Companies across the Asia Pacific, including India must act now to future-proof their business.” said Bhavna Sud, Client Partner, Korn Ferry India.

According to the study, there will be a talent deficit of 85.2 million workers across the economies analyzed. The financial impact of this talent shortage amounts to $8.5 trillion in unrealized annual revenue globally over the next 12 years. 

The study shows that the challenge of lack of skilled talent is to continue, and by 2030, organizations and economies could find themselves in the grip of a talent crisis. If left unaddressed, the talent crunch can impact the growth of key markets and sectors across the region. It’s important that the companies re-think their hiring and talent management processes. Companies have to start focusing and investing more in skilling. They should look for other competencies and train their employees. 

Bhavna Sud says, “Hire people high on agility and make continuous learning a part of your life. Retain your best and show them a growth path. Tap into new and different sources of talent. Forecast and train for the ‘right’ skills. Make it easy for women to re-enter the workforce and literally double your talent supply.” 

She also highlights the importance of technology and says, “Technology is the factor that will enable us to be ready for the future of work. The future will be built on the effective partnership between people and technology.” 

Here are some more findings of the study:

The Asia Pacific market faces an imminent labor shortage of 12.3 million workers by 2020, rising to 47.0 million by 2030 at an annual opportunity cost of $4.238 trillion.

• Technological advancement across all sectors of the Asia Pacific economy could be hindered by an acute talent shortage of 2.0 million TMT workers, at an annual opportunity cost of more than $151.60 billion by 2030. 
  
  
• Financial and business services will be hardest hit across the region, with a deficit of 3.7 million workers by 2030, resulting in an annual opportunity cost of more than $439.62 billion if labor shortages are not addressed. 
  
  
• India is the only economy among the 20 countries studied with a potential talent surplus, predicting an excess of 245.3 million workers by 2030. 
  
  
• India will see a Level A (highly skilled) TMT surplus of 1.3 million workers by 2030, offering yet more opportunities for the nation. India could challenge America’s position well before 2030 in TMT sector. 
  
  
• China will feel the talent shortage most acutely and could lose out on $1.433 trillion in annual revenue not generated by 2030, one-third of the Asia Pacific region’s total opportunity cost.