April, 2007

I just finished the April 9, 2007 issue of BusinessWeek and if you haven't read it, see if you can access it online or get an issue. The first story in the News&Insights column on Page 28, the first major story in the issue is entitled, "Where Are All the Workers? Companies Worldwide are suddenly scrambling to manage a labor crunch".

Cheap labor is running out as the costs of talent worldwide are increasing.

Here are some statistics from the article:

82% of companies in Mexico are having trouble filling jobs
61% in Japan
41% in the US
36% in Canada
31% in Europe
19% in China
9% in India (The figures in India are funny--turnover in India happens so quickly that if employers need to fill a job, they'll seduce someone from a competitor).

Computer programmers in Bulgaria and network professionals in Romania are in short supply.

Lack of labor is the second biggest threat to the world economy (the first is terrorism of any sort). We are in an era where the next generation of workers in most countries does not meet the skill level of what employers are looking for.

For your firm to compete, you can train new hires in what is missing and partner with schools and universities to improve the curriculum to meet the demands of industry (personally, I believe less media influence and more hard work is a good starting place for kids but that's another conversation).

What is in demand?

Everything!

Sales people
Technology professionals
Factory workers
Accountants
Plumbers
Electricians
Lab workers

It almost doesn't matter what the skill is--firms need it.

We are almost at the point where wages are going to have to take off. After all, with a finite supply, wages will start to take off after a 6 year slump.

I encourage you to start getting creative with your retention and recruiting programs and create a public image or brand for your firm to make it an employer of choice.

More about this again soon.