A new report has revealed that Asia’s emerging economies face severe skill shortages. In the near future, countries will encounter a lack of supply of skilled labour due to less-than-adequate skills-based education and changing workforce demographics.
The report, titled Deciphering Labour and Skill Shortages in Asia with Workforce Analytics, was published by the Workforce Analytics Institute (WAI), a partnership between The Conference Board and Mercer. It looked at factors such as country demographics, labour supply, and compensation in both advanced and emerging markets across the region.
According to the report, skilled labour is in high demand across Asia, but workforce preparedness varies widely across the region. The report considers the proportion of educated individuals within an economy to be a way to understand skill preparedness.
In a number of countries in the region, the share of the population who are educated beyond secondary level is below 8%. Those economies “have a distance to go before their workforce is fully equipped to work in an international environment”, the report states.