Future of Work
2) To understand the impact of the skills gap on companies in emerging markets.
Our research on the impact of the skills gap on companies in emerging markets revealed insights. Here are key pieces of information we found:
Impact of Skills Gap on Emerging Markets
- Top emerging markets are in the countries of: Brazil, Russia, India, China, Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, Turkey, South Korea, and Vietnam.
- However, Brazil and Mexico are still being negatively impacted by a skills gap. According to the World Economic Forum, 68% of managers in Brazil and 38% of managers in Mexico said that they had difficulties filling positions. The main reasons given included a lack of technical skills and experience, and the skills shortage is likely to worsen.
- According to LinkedIn, most of the top skills in Brazil that are needed by employers relate to digital technologies, with statistical analysis and data mining, web architecture and development framework, and mobile development topping the list of requirements. More than 48,000 people are needed to fill open vacancies, but organizations just cannot find enough professionals. According to Softex, failure to close the digital skills gap might result in losses to local companies of 115 billion reais ($28 billion) by 2020.
- An analysis by Accenture revealed that failing to close the intelligent technologies skills gap could negatively impact annual growth and could cost Brazil and China up to 1.7, Mexico 1.8, and India 2.3 percentage points from its average annual growth rate in the next 10 years.
- Russia is being negatively impacted by a skills gap that is being further exacerbated by a labor shortage that has resulted from lower birth rates of youth that would now be entering the workforce. This labor shortage is making it difficult for technology companies, among others, to recruit staff they need, and the technology sector is vital to reviving Russia's economic growth.
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