Worldwide, demand for high-skilled labor is growing faster than supply in advanced economies, concludes a report by the McKinsey Global Institute. Demand for low-skill labor remains weak. Lower-skill workers —including 75 million young people — are struggling with unemployment, underemployment and stagnating wages.
The global labor force will approach 3.5 billion in 2030, the report predicts. By 2020, the global economy will face skills shortages:
– 38 million to 40 million fewer workers with tertiary education (college or postgraduate degrees) than employers will need, or 13 percent of the demand for such workers
– 45 million too few workers with secondary education in developing economies, or 15 percent of the demand for such workers
– 90 million to 95 million more low-skill workers (those without college training in advanced economies or without even secondary education in developing economies) than employers will need, or 11 percent oversupply of such workers
The population in China, as well as in many advanced economies, is aging. Most new workers will live in India and the “young” developing economies of Africa and South Asia.
Scientific illiteracy disqualifies many young Americans from good white-collar and blue-collar jobs, writes Rishawn Biddle on Dropout Nation. “The average American working in science, technology, engineering, and medical fields will earn $500,000 more in their lifetime than peers outside of those fields — and are more likely to stay employed even in periods of economic recession.”