7 stats that

help explain
the global
labor shortage.

Today’s labor shortage affects employers in nearly every region of the world. In fact, studies show that
87% of companies are already having trouble acquiring the talent they need or anticipate having these
challenges in the future.

If this issue is not addressed, it may hinder your companies’ ability to grow. However, before you put
a plan in place, it’s important to have a grasp of the causes behind it. By better understanding these
causes, you can develop effective talent strategies to overcome the labor shortage. Here are seven
tell-tale stats that shed light on this issue.

1. 49% of global workers feel at least level of burnout felt by employees (% survey participants)

somewhat burned out, according to 3

a 2021 study
Early into the global pandemic, mental health experts
were predicting an increase in mental health issues
that could affect the workplace. The combination of
workplace disruptions, increasing personal demands
very-high degree
(homeschooling and caring for aging parents),
long-term isolations due to shutdowns and remote high degree

work, and ongoing health scares took a toll on somewhat

nearly everyone around the world. For some, these
low degree
increased stressors and isolation led to depression,
anxiety and other mental health disorders. very-low degree

asia australia europe latam US total

source: McKinsey & Company, 2021

These issues are now preventing some workers
from returning to the workforce or forcing them to
change jobs. For example, in the United States, 66%
of Millennials and 81% of Gen Z workers who left
the workplace did so due to mental health issues.
Additionally, one-half of the 400,000 Britons who left
the workplace between February 2020 and November
2021 cited mental health issues as a reason for leaving.
% workers who left the workplace due, at least in part, to mental
health issues in the United States
66% 81%
of Millennials of Gen Z
source: Mind Share Partners, 2021
This is such a huge issue that employers simply can’t
ignore. Taking steps to provide more mental health
support, such as hosting mental health workshops,
offering virtual counseling sessions and providing
paid time off for mental health purposes can improve
retention and productivity.
2. one in six of the world’s population
will be aged 60 or over by 2023
Even more alarming is that the number of seniors aged
60 and over is expected to double between 2030 and
2050 and the population of seniors aged 80 and over
is expected to triple over the same period. This factor
means that more seniors will be heading to retirement in
the upcoming years and these vacant positions will need
to be filled.
Typically, retirements wouldn’t be a problem, except
today’s aging population coincides with a rapid
reduction in birth rates. According to global statistics,
fertility rates in over 70 countries around the world are
already below the necessary replacement rate of 2.1%.
These statistics are already creating a problem in the job
market, where more people are retiring than are joining
the workforce. This issue was only exasperated during
the pandemic as many seniors decided to retire early
due to health concerns, layoffs and terminations.
3. 41% of the global workforce is
considering leaving their current jobs
The ‘Great Resignation’ is not just a buzzword coined
by the media. Rather, it’s a real phenomenon affecting
countries across the globe. For instance, in the United
States 20 million workers left their jobs between April
and August 2021. This challenge isn’t only isolated to
the United States. In Europe, 14 million workers didn’t
just leave their current jobs, they exited the job market
altogether. In Latin America, studies show that 1-in-6
workers aged 18 to 29 also left the workforce.
With more than 4-in-10 workers considering changing
jobs and millions of other workers leaving the workforce
altogether, employers should take steps to focus on
retention. Strategies, such as career advancement
opportunities, flexible scheduling and more paid time off
can help.
% of the global workforce considering leaving their jobs
41%
are considering
leaving their job
source: Microsoft, 2022
4. an estimated 83 million jobs across
the globe are expected to be disrupted
by automation by 2025
The reality is that employers have been struggling with
a skills gap well before the pandemic hit. However, the
onset of the pandemic pushed this demand into overdrive.
Factors, such as remote work, supply chain disruptions,
and frequent quarantines forced many companies
to invest in more technology and automation in the
workplace. In fact, studies suggest that 30% of current
jobs around the world could be automated by 2030.
With these new investments also came the increased
demand for tech-related skills in the workplace. The
combination of the ongoing labor shortage and growing
skills gap is making it challenging for some companies to
find the skilled talent it needs. Some of these companies are
now starting to invest more in upskilling and reskilling their
current workers in an effort to acquire these crucial skills.
5. international migrant workers
account for 5% of the global workforce
Countries like the U.K., United States, Germany, Canada
and Saudi Arabia rely heavily on immigrant workers.
During the pandemic immigration of foreign workers
fell to record lows as many countries shut their borders
and tightened their immigration policies to prevent the
spread of COVID-19. For example, 1.3 million immigrant
workers left the United Kingdom during the pandemic
and Canada saw a reduction of 400,000 immigrant
workers in Q1 2021 compared to previous years.
While it’s likely that these rates will slowly start to
rise since many countries are loosening their travel
restrictions, it could take years before immigration
returns to pre-pandemic levels in many areas around
the world. Companies in these countries that rely on
immigrant workers will need to invest in other strategies,
such as increased wages, employee training and the use
of contingent workers, to find the talent they need.
6. 78% of business leaders expect
automation to change they way of work
The introduction of automation as well as the
advancement of new technologies, including Machine
learning and Artificial Intelligence, are helping companies
streamline many business processes. With automation
set to replace many routine tasks in the workplace,
employers are likely to transition their hiring needs to
search for candidates that don’t only have the right
digital skills but ones that also have relevant soft skills.
number of job vacancies in the United Kingdom from January 2016 to February 2022
thousands
1,500
1,125
750
375
0
2016
For instance, employers are likely to seek out candidates
that have human-centric skills that technology can’t
provide, such as empathy, collaboration and listening.
Many of these skills are difficult to teach, so developing
strategies to assess candidates for these skills will be
necessary.
Contact Randstad today to learn more about the growing
labor shortage and what steps your company can take to
overcome these challenges.
7. there are nearly 11 million job
vacancies in the united states alone
According to the Bureau of Labor Statistics, there are
nearly 11 million job vacancies in the United States
alone. The United States isn’t the only country facing
a significant labor shortage in 2022. The U.K. has over
1.2 million job vacancies and Australian employers are
struggling to fill more than 400,000 open job roles.
While these numbers are quite alarming, many of
these countries also struggle with higher-than-normal
unemployment rates.
This mismatch in numbers definitely shows that many
workers around the globe are not rushing back into the
workforce. Whether by choice or due to personal issues,
such as childcare, many of today’s workers are holding
out for better working conditions, including higher
wages, more flexible work schedules, additional paid
time off and safer work environments, just to name a few.
With the marketplace shifting to a candidate-driven job
market, employers must find ways to meet these workers’
shifting expectations if they want to attract and retain the
talent they need. Contact Randstad to get support!
2017 2018 2019 2020 2021 2022
source: Office for National Statistics – Vacancy Survey, 2022