Globalization’s jobs math, June 2012
Over the past three decades, a global labor market has taken shape, spurring a massive movement from “farm to factory” in emerging markets and boosting output and productivity. But today, the strains on this labor force are becoming painfully evident.
The McKinsey Global Institute’s latest report, The world at work: Jobs, pay, and skills for 3.5 billion people (available on mckinsey.com), finds that market forces will fail to resolve demand and supply imbalances for tens of millions of skilled and unskilled workers alike.
In an accompanying video interview, former deputy governor of the Reserve Bank of India Rakesh Mohan highlights some of the challenges facing policy makers and business leaders.d supply imbalances for tens of millions of skilled and unskilled workers alike. In an accompanying video interview, former deputy governor of the Reserve Bank of India Rakesh Mohan highlights some of the challenges facing policy makers and business leaders....
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Based on current trends in population, education, and labor demand, the report projects that by 2020 the global economy could face the following hurdles:
- 38 million to 40 million fewer workers with tertiary education (college or postgraduate degrees) than employers will need, or 13 percent of the demand for such workers
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