Is There a Major Shift in the Job Market?

There is an ongoing shortage of skilled labour worldwide. This may hinder growth of businesses in the post-Covid-19 period. In the United States, the talent shortage has more than tripled in the last 10 years. For the United Kingdom, a study found that 69% of employers there were experiencing skill shortages.

By 2030, global consulting firm Korn Ferry estimates that the global talent shortage could reach 85.2 million people, resulting in the loss of trillions of dollars in economic opportunity. The industries that will be most affected are the “knowledge-intensive” industries such as financial services, technology, media, telecommunications and manufacturing.

The financial impact of this talent shortage could reach US$8.45 trillion (RM38 trillion) in unrealised annual revenue by 2030. Interestingly, India is the only economy in the study seen maintaining a talent surplus in 2030.

Several factors can affect talent availability – changing demographics, public policies, wages, digital transformation and the education system. Covid-19 played the role of disruptor and increased the reliance on digitalisation. 

For Malaysia, it is generally at the low-skilled or blue-collared worker level. Malaysia is in fact facing a “critical double crunch” where low-skilled workers without digital experience seem less employable, while those still employed must be reskilled to ensure career advancement and employment continuation.

Governments around the world, including Malaysia, are betting heavily on technology for future growth. Traditional cashiers will now have a more comprehensive range of career choices, like eCommerce analyst or as back-end logistics manager overseeing deliveries. So, it opens the door for new job opportunities, but this needs re-skilling.

The global hunt for talent is heating up. Australia, which has a long-standing shortage of skilled workers has now decided to ease its visa rules in a bid to attract skilled workers. Germany is allowing skilled foreign professionals to live in the country before securing a job, while the United Kingdom has introduced a new special visa for graduates from 50 of the world’s top universities. Singapore is offering a new five-year visa for high-earning foreign nationals, while Malaysia too has launched a new premium visa programme to draw rich investors to settle in the country, not necessarily skilled professionals.

Malaysia seems to be attracting more low-skilled workers than professionals. We have long suffered from a talent outflow to neighbouring countries like Singapore, China, Australia, the UK and the United States. This is largely due to better job opportunities, pay packages and lifestyle.

There are many expatriates who work in Malaysia but bureaucracy in relation to work permits and visas has denied their quest to stay for the long term. The Government, especially MITI and Home Ministry have to rethink their strategies.

Flip-flop policies and our inherent insecurity of “pendatangs” will leave us well behind others in the region and the world. Do we need STEM (people) to remain? Do we attract the best talent globally? Or, are we so focussed on one race only? Do we understand IR4.0 or is our blueprint a book for the coffee table? We need fresh ideas but this is unlikely from the present Government.

Reference:

Major shift in the job market? Gurmeet Kaur, The Star, 10 September 2022