Help Wanted: Bridging The Gap in Today's Skill Lacking Economy

Help Wanted 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. V BRIDGING THE GAP IN TODAY'S SKILL LACKING ECONOMY WHAT IS A SKILLS GAP AND WHY DOES IT EXIST? The American Society for Training & Development (ASTD) defines a skills gap as: "A significant gap betweem an organization's current capabilities and the skills it needs to achieve its goals." 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 84% of respondents indicated that there is a skills gap in their organization 5%: increase in respondents that indicate there is a skills gap in their organization between 2009 and 2012 UNEMPLOYMENT AND WORKER SHORTAGE worldwide, young people are three times more likely than their parents to be out e work 75 million young people around the world are unemployed (According to the International Labour Organization) Despite vast unemployment of the world's youth, there is still a critical skills shortage across the globe. Potential shortage of workers in 2020: (According to the McKinsey Global Institute June 2012 report, The world at work: Jobs, pay, and skills for 3.5 billion people) 38-40 MILLION 45 MILLION 90-95 MILLION Low-skills workers - 10% of the demand High-skills workers - 13% of the demand Middle-skills workers - 15% of the demand 7 MILLION Despite a slight decrease in unemployment and a slight increase in the number of job openings, employers struggle to find skilled talent 45% increase in job openings in one year of US employers say lack of skills is a common reason for entry-level vacancies WHAT ARE THE BIGGEST GAPS? MIDDLE- AND HIGH-SKILLS JOBS HAVE THE LARGEST GAPS Middle-skill: Growing Middle-Skills Industries Facing Job Shortages: Highly specialized mechanical, technical, and production careers that may require industry or government certification but not necessarily a bachelor's degree Manufacturing Construction Healthcare MANUFACTURING INDUSTRY 1/3 The manufacturing industry has shrunk by 1/3 its size during the last decade-losing nearly 4 million jobs. Automation has transformed factories and altered necessary skills for operating and maintaining equipment. According to Deloitte's report, Boiling Point? The skills gap in U.S. manufacturing 67% of surveyed U.S. manufacturing executives report a moderate to severe shortage of available, qualified workers 56% anticipate the shortage of available, qualified workers to grow worse in the next three to five years 560/ Top 3 Factors Contributing to Construction Skills Shortage: According to ASTD: CONSTRUCTION INDUSTRY ACCORDING TO MCGRAW-HILL CONSTRUCTION (MHC) 73% forecasted growth for non-residential construction projects by 2015 – such growth has serious implications for the availability of skilled construction workers RETIRING WORKERS IMPACT OF THE RECESSION INSUFFICIENT PIPELINE OF NEW WORKERS IMPACT ON GREEN SKILLS JOB MARKET "Skilled green workers are hard to hire for" (According the MHC's 2012 Construction Industry Workforce Shortages Report) High-skills: STEM fields (science, technology, engineering, and math) require at least an undergraduate degree 86% of architecture/engineering firms agreed with the above statement 91% of general contractors agreed with the above statement INDUSTRIES WITH GROWING HIGH-SKILLS GAPS Nuclear Industry: YOUNG WORK-FORCE'S WANING DEFICIT OF TRAINING MASS OF RETIRING EMPLOYEES GROWING SKILLS GAP INTEREST IN THE FIELD PROGRAMS INFORMATION TECHNOLOGY INDUSTRY According to ComTIA: 15+ MILLION 91% IT employers that indicate that there is an overall skills gap among employees Businesses that rate the aggregate skill levels of their IT staff as less than optimal LLS SHORTAGE According to a survey conducted by the American Management Association: *Soft skills: communication, collaboration, creativity, and critical thinking 9 OF 10 executives: said that soft skills are important to support business expansion 4 OF 10 executives: rated their employees as above average in soft skills HIGHEST RANKED AREAS FOR SKILLS GAPS: (ACCORDING TO AN ASTD MEMBER SURVEY) MANAGERIAL AND PROFESSION- OR LEADERSHIP AND EXECUTIVE SKILLS SUPERVISORY SKILLS INDUSTRY-SPECIFIC SKILLS TOP REASONS FOR THE SKILLS GAP ACCORDING TO A.S.T.D’S MEMBER SURVEY: 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 Skills of the workforce don't match company strategy, goals, markets, or business models 44% US students believe their postsecondary studies (post-high school) improved their employment opportunities "New graduates are adequately prepared for entry-level positions" 50% of youth and employers believe the above statement is true 72% of education providers believe the above statement is true "The main reason students drop out is that the course of study is too difficult" 39% of education providers believe the above statement is true 9% of youth say the above statement is true (affordability is cited as the main reason) 67% Education providers that report they are able to estimate the job-placement rate of their graduates Education providers over estimate the job-placement rate of Z0%0 graduates compared with what was reported by youth 60% Youth say that on-the-job training and hands-on learning are the most effective instructional techniques V½: those above are enrolled in curricula that prioritize those techniques IMPACT OF THE SKILLS GAP ADVANCED ECONOMIES DEVELOPING ECONOMIES Lead to more long-term and permanent joblessness Millions of low-skilled workers will be trapped in subsistence agriculture and urban poverty Greater polarization of incomes Slow their climb into higher value-added between high- and low-skilled workers industries ACCORDING TO AAR CORP'S THE MID-SKILLS GAP IN MIDDLE AMERICA SKILLS GAPS CAN TRANSLATE INTO: 01 02 04 05 06 Slower growth Lost productivity Form a barrier to middle-income jobs Create an inability to compete and expand High on-the-job training costs Compromise industry's ability to build a pipelinė of workers 9 TIMES HIGHER: 36%:OECD Country's employers 174 of youth do not make a the income gap between the top 10% and the bottom 10% reported that a lack of skills caused "significant problems in terms of cost, quality, and time" or worse smooth transition to work SOURCES NOGRE.com http://nist.gov/mep/upload/Bridging-the-Skills-Gap_2012.pdf International Graduate Destination http://mckinseyonsociety.com/downloads/reports/Education/Education-to-Employ ment_FINAL.pdf Created by oBizMedia