The document discusses the skills gap issue facing many countries and industries. It provides statistics showing that 84% of organizations report having a skills gap. Middle-skill and high-skill jobs face the largest gaps. Key reasons for the skills gap include retiring workers, insufficient training programs, and a declining interest in certain fields from young people. The skills gap can negatively impact businesses and economies by causing slower growth, lost productivity, and high training costs if left unaddressed.

1. http://mckinseyonsociety.com/downloads/reports/Education/Education-to-Employ
ment_FINAL.pdf
http://nist.gov/mep/upload/Bridging-the-Skills-Gap_2012.pdf
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It is the point at which an organization can no longer
grow or remain competitive because it cannot fill critical
jobs with employees who have the right knowledge, skills,
and abilities.
ACCORDING TO A 2012 ASTD MEMBER SURVEY
5%: increase in respondents that indicate
there is a skills gap in their organization
between 2009 and 2012
84% of respondents indicated that there
is a skills gap in their organization
Worldwide, young people are three times more likely than their parents to be out of work
Potential shortage of workers in 2020:
of US employers say lack of skills is
a common reason for entry-level
vacancies
Middle-skill:
Highly specialized
mechanical, technical,
and production
careers that may
require industry or
government
certification but not
necessarily a
bachelor’s degree
The manufacturing
industry has shrunk
by 1/3 its size during
the last decade–losing
nearly 4 million jobs.
forecasted growth for non-residential construction
projects by 2015 – such growth has serious
implications for the availability of skilled
construction workers
“Skilled green workers are hard to hire for” (According the MHC’s 2012
Construction Industry Workforce Shortages Report)
Automation has transformed
factories and altered necessary
skills for operating and
maintaining equipment.
Top 3 Factors Contributing to
Construction Skills Shortage:
According to ASTD:
IMPACT ON GREEN SKILLS JOB MARKET
INDUSTRIES WITH GROWING HIGH-SKILLS GAPS
According to Deloitte’s report, Boiling Point?
The skills gap in U.S. manufacturing
of surveyed U.S. manufacturing
executives report a moderate to severe
shortage of available, qualified workers
anticipate the shortage of available,
qualified workers to grow worse in the
next three to five years
of architecture/engineering firms
agreed with the above statement
High-skills: STEM fields
(science, technology,
engineering, and math)
require at least an
undergraduate degree
Businesses that rate the aggregate skill levels of their
IT staff as less than optimal
IT employers that indicate that there is
an overall skills gap among employees
*Soft skills: communication, collaboration, creativity, and critical thinking
executives: said that soft skills are important to
support business expansion
Skills of the workforce
don’t match company
strategy, goals, markets,
or business models
Lack of bench strength in
the company’s leadership
ranks
Less of an investment in training/lack of
support for employee learning and
development in training/lack of support for
employee learning and development
“The main reason students drop out is that the course of study is too difficult”
½: those above are enrolled in curricula that prioritize those techniques
Lead to more long-term
and permanent
joblessness
Greater polarization
of incomes
between high- and
low-skilled workers
Millions of low-skilled
workers will be trapped
in subsistence agriculture
and urban poverty
9 TIMES HIGHER:
the income gap between the top
10% and the bottom 10%
1/4 of youth do not make a
smooth transition to work
36%:OECD Country’s employers
reported that a lack of skills caused
“significant problems in terms of cost,
quality, and time” or worse
Slow their climb
into higher
value-added
industries
“New graduates are adequately prepared for entry-level positions”
HIGHEST RANKED AREAS FOR SKILLS GAPS: (ACCORDING TO AN ASTD MEMBER SURVEY)
According to a survey conducted by the American Management Association:
of general contractors agreed
with the above statement
WHAT IS A SKILLS GAP AND WHY DOES IT EXIST?
WHAT ARE THE BIGGEST GAPS?
increase in job openings in one year
MIDDLE- AND HIGH-SKILLS JOBS HAVE THE LARGEST GAPS
ACCORDING TO A.S.T.D’S MEMBER SURVEY:
Growing Middle-Skills Industries Facing Job Shortages:
Manufacturing Construction Healthcare
RETIRING WORKERS IMPACT OF THE
RECESSION
INSUFFICIENT PIPELINE
OF NEW WORKERS
Nuclear Industry:
LEADERSHIP AND EXECUTIVE SKILLS
MANAGERIAL AND
SUPERVISORY SKILLS
PROFESSION- OR
INDUSTRY-SPECIFIC SKILLS
ADVANCED ECONOMIES DEVELOPING ECONOMIES
SKILLS GAPS CAN TRANSLATE INTO:
Slower growth Form a barrier to
middle-income jobs
Lost productivity Create an inability
to compete and
expand
High on-the-job
training costs
Compromise industry’s
ability to build a
pipeline of workers
HelpWantedBRIDGING THE GAP IN TODAY’S SKILL
LACKING ECONOMY
he growing gap between the market places’ current
skills and the future capabilities of the marketplace
to meet the needs for future development is what is
being called the Skills Gap. Organizations and
companies in the US and across the globe are noting this
every widening gap. Even more disturbing is the large
unemployment rate still plaguing the US and other
economies. The skills gap, if left unchecked, will have
lasting effects on business, the economy, and the world
at large.
T
TOP REASONS FOR THE SKILLS GAP
IMPACT OF THE SKILLS GAP
INFORMATION TECHNOLOGY INDUSTRY According to ComTIA:
MANUFACTURING INDUSTRY
UNEMPLOYMENT AND WORKER SHORTAGE
The American Society for Training & Development
(ASTD) defines a skills gap as:
“A significant gap between an
organization’s current capabilities and
the skills it needs to achieve its goals.”
Despite vast unemployment of the world's
youth, there is still a critical skills shortage
across the globe.
75 million young people around the
world are unemployed (According to the
International Labour Organization)
(According to the McKinsey Global Institute June 2012 report, The world at work: Jobs, pay, and
skills for 3.5 billion people)
High-skills workers - 13%
of the demand
Middle-skills workers - 15%
of the demand
Low-skills workers - 10% of the demand
MILLION MILLION MILLION
38-40
45%
90-9545
.7MILLION
Despite a slight decrease
in unemployment and a
slight increase in the
number of job openings,
employers struggle to find
skilled talent
67% 56%
CONSTRUCTION INDUSTRY
ACCORDING TO AAR CORP’S THE MID-SKILLS GAP IN MIDDLE AMERICA
SOFT SKILLS SHORTAGE
ACCORDING TO MCGRAW-HILL CONSTRUCTION (MHC)
73%
86%
91%
MASS OF RETIRING EMPLOYEES
DEFICIT OF TRAINING
PROGRAMS
GROWING SKILLS GAPYOUNG WORK-FORCE'S WANING
INTEREST IN THE FIELD
+ + =
15+ MILLION 91%
9OF10
executives: rated their employees as above average
in soft skills
4OF10
US students believe their postsecondary studies (post-high
school) improved their employment opportunities44%
of youth and employers believe the above statement is true
50%
of education providers believe the above statement is true
72%
of education providers believe the above statement is true
39%
of youth say the above statement is true (affordability is
cited as the main reason)9%
Education providers that report they are able to estimate
the job-placement rate of their graduates67%
Education providers over estimate the job-placement rate of
graduates compared with what was reported by youth20%
Youth say that on-the-job training and hands-on learning
are the most effective instructional techniques60%
International Graduate Destination
NoGRE.com
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