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The staff at NoGre.com decided to focus on the extreme skill gap in todays economy. Is it a skill gap or education gap? Lets find out
The 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.
The American Society for Training & Development (ASTD) denes a skills gap as: A signicant gap between an organizations 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 ll critical jobs with employees who have the right knowledge, skills, and abilities.1 According to a 2012 ASTD member survey:1 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
Worldwide, young people are three times more likely than their parents to be out of work 75 million young people around the world are unemployed2 (According to the International Labour Organization) At the same time as vast unemployment of the worlds youth, there is a critical skills shortage across the globe.2 Potential shortage of workers in 2020:1 (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: high-skills workers - 13% of the demand 45 million: middle-skills workers - 15% of the demand 90-95 million: low-skills workers - 10% of the demand
Unemployment Continued
45%: US employers say lack of skills is a common reason for entry-level vacancies2 Despite a slight decrease in unemployment and a slight increase in the number of job openings, employers continue to struggle to find skilled talent1 1.7% - decrease in unemployment in under 3 years .7 million - increase in job openings in one year
Middle-skills: highly specialized mechanical, technical, and production careers that may require industry or government certification but not necessarily a bachelors degree1
Growing Middle-Skills Industries Facing Job Shortages:1 Manufacturing Construction Healthcare High-skills: STEM fields (science, technology, engineering, and math) require at least an undergraduate degree1
15+ million: Businesses that rate the aggregate skill levels of their IT staff as less than optimal 93%: IT employers that indicate that there is an overall skills gap among employees
Construction Industry1: Top 3 Factors Contributing to Construction Skills Shortage: According to ASTD:
73%: forecasted growth for non-residential construction projects by 2015 such growth has serious implications for the availability of skilled construction workers
Industries Continued
Impact on Green Skills Job Market1: Skilled green workers are hard to hire for (According the MHCs 2012 Construction Industry Workforce Shortages Report)
86%: architecture/engineering firms agreed with the above statement 91%: general contractors 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.
Manufacturing Industry1:
According to Deloittes report, Boiling Point? The skills gap in U.S. manufacturing:
67%: 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 agreed with the above statement
Industries Continued
Soft skills: communication, collaboration, creativity, and critical thinking According to a survey conducted by the American Management Association:
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 Gaps1: (according to an ASTD member survey)
Leadership and Executive skills Managerial and Supervisory skills biggest concern for the majority Profession- or Industry-specific skills
Skills of the workforce dont match company strategy, goals, markets, or business models Lack of bench strength in the companys 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
44%: US students believe their postsecondary studies (post-high school) improved their employment opportunities2 New graduates are adequately prepared for entry-level positions2
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 difficult2
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)
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2/3: Education providers that report they are able to estimate the job-placement rate of their graduates2 20%: Education providers over estimate the job-placement rate of their graduates compared with what was reported by youth themselves2
60%: Youth say that on-the-job training and hands-on learning are the most effective instructional techniques2
: those above are enrolled in curricula that prioritize those techniques2
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Advanced Economies1:
Lead to more long-term and permanent joblessness Greater polarization of incomes between high- and low-skilled workers
Developing Economies1:
Slow their climb into higher value-added industries Millions of low-skilled workers will be trapped in subsistence agriculture and urban poverty
Slower growth High on-the-job training costs Lost productivity Form a barrier to middle-income jobs Create an inability to compete and expand Compromise industrys ability to build a pipeline of workers
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Data Source: This slideshow was based on two prestigious reports from National Institute of Standards and Technology (NIST) & Mckinsey Center for Government.
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