TRADE & FINANCE
MEETING THE SKILLS GAPS IN EMERGING ECONOMIES
NIKHIL SETH UN Assistant Secretary- General, Executive Director UNITAR
The significant and alarming mismatch between the skills available and the needs of the rapidly developing emerging economies will become one of the major constraints to sustained and sustainable growth. This will be most evident on the pathway to sustainable development and in meeting the goals and targets of Agenda 2030 for sustainable development. The mismatch will limit the growth trajectory, limit the transformative shifts required to end poverty irreversibly and limit the urgent shifts in agriculture, industry, energy and cities which are the cornerstones of a prosperous future for our people and for the health of our planet. The transformation and growth of emerging economies as a result of globalisation and the digital revolution have resulted in emerging economies such as India, China and Brazil moving up the value chain, opening up demand for labour in new sectors including in service and highly-skilled industries, such as engineering, healthcare, information and communications technology( ICT), leisure and professional services.
In addition, the types of work that people do and the ways in which they are done worldwide are being revolutionized by new technologies, which are reshaping production lines, shifting towards manufacturing automation, replacing human labour with robotics, and transforming our need to be flexible and technologically savvy in how we do business. By 2020, it is estimated that there will be a global surplus of 90 to 95 million low-skilled workers and a global shortage of 83 to 85 million high- and mid-skilled workers. A Manpower Group Talent Shortage Survey( 2013) showed that skills shortages prevented 45 % of employers in the Asia-Pacific region filling vacancies. In India, this number soared to 61 % of employers, while in Brazil 68 % had trouble recruiting the right workforce. The report concluded that developing nations have to narrow the skills gap and“ produce more workers capable of doing talent intensive jobs that require higher qualifications”. It is apparent that there will be a need to invest in technical and vocational training. Countries may have plenty of educated young workers, but at a time of industrial upgrading
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