Report predicts 85 million reduction in skilled labour by 2020

Indications have emerged that the global employment market may suffer a shortfall of about 85 million high and middle skilled workers by 2020.

The report released by Intel tagged: “Increasing Employability and Accelerating Economic Growth Worldwide”, revealed that technology would play a critical role in helping people develop the necessary skills needed in today’s workplace.

Besides, the report also explained that young people are three times more likely to be out of work presently due to the current situation of having about 75 million unemployed youths.

As a result of global unemployment trends and projection, Intel said the unemployment as at 2016 stands at 200 millions with a probability of reducing to 190 millions by 2018.

“To reduce the rate of unemployment there is need to develop strong, best work-equipped workforce in other to nurture and support the development of the next generation of innovative business that a vital economy requires.

In other to narrow the skills gaps to drive employability there is need for opportunities of improving workforce preparedness by engaging in trainings that will get them well equipped ahead of their dream jobs.
“40 per cent of employers claims lack of skilled workers as the principal reason for entry-level vacancies, approximately 27 per cent reported leaving a job open in the past year due to a shortage of candidates with the necessary skills, only 43 per cent believe they can have enough entry-level skilled workers”, the report said.

Dwelling on the yardsticks required for a prepared and skilled workforce, the report said access to information, critical thinking, entrepreneurial skills and a strong foundation in math and science are imperatives needed in today’s global economy.

“Education is the single most powerful tool we have for meeting that need and unlocking new economic avenues to build a foundation for a brighter future. Technology plays an increasingly critical role in enabling and supporting that educational effort, linking millions around the world to the skills they need and the new opportunities to put them to use.

Expanding technology access is a crucial piece, especially for underserved populations. Connecting to technology can mean connecting to a wealth of financial, health, and education resources able to dramatically expand opportunities and improve lives. When working in concert, education and technology can be truly transformative, breaking the cycle of generational poverty and driving catalytic change across the planet”, Intel said.

Giving an insight into the role entrepreneurship can play in the development of a country’s growth, the report noted that its acts as a catalyst for innovation, job creation and economic empowerment for the citizens.

“According to the U.S. Census Bureau, self-employed individuals who have no paid employees operate three-forths of U.S. business. The U.S. Small Business Administration reports that America’s small businesses employ more than 50 per cent of the private workforce, generate more than half of the nation’s gross domestic product, and are the principal source of new jobs in the U.S. economy.

Youth are particularly important when nurturing a vital culture of entrepreneurial exploration. Nearly 80 per cent of world-be entrepreneurial in the U.S. is between the ages 18 and 34.

In today’s global economy, entrepreneurial is no longer just for entrepreneurs. Government is endeavouring to offer entrepreneurship programs that encourage young people to capitalize on entrepreneurial strategies and skills to increase their employability. According to the European Commission, the aim of entrepreneurship education and training should be to develop entrepreneurial capacities and mindsets that benefits economies by fostering creativities, innovation, self-employment.

Citing the roles of institutions in human capital development, the role said Universities act as engines of employment and entrepreneurship though their dedicated research projects.
“This includes direct employment such as the principal researcher. Research team, lab technicians, and others who help support the work. Other indirect opportunities are generated through innovations that lead to new technologies, new industries, and new companies.
University research is at the core of knowledge-intensive industries including biotech, telecommunications and information technology, while the innovations that low from the research have led to the creation of countless companies, many of them now global leaders in their industries. Notable examples include Genentech, Cisco Systems, SAS, and Google all of which started in university research labs.”

Explaining its contribution to world’s employment index, Intel said its continued success depends on innovation and entrepreneurship.
“The history of Intel reinforces the assertion that innovation is key to driving economic growth and improving social conditions. The company remains passionate about fostering entrepreneurship in communities around the world and advancing innovation to address global challenges.
Building on that heritage, Intel collaborates with governments, educators, NGOs, and industry to advance the cause of innovation and entrepreneurship. Intel has invested in programs and initiatives aimed at inspiring and providing education and critical skills for young entrepreneurs. The company creates and invests in efforts designed to give entrepreneurs the skill and resources they need to address community issues and create sustainable enterprises.”

According to the reports, investing in the empowerment of people, especially underserved populations, is not only critical for long-term employability, but is central to global economic opportunity and growth.
“As an employer, Intel understands that it has a vested interest in expanding the talent pipeline and creating educated, employable consumers in new markets.

Intel remains deeply committed to the idea that technology can serve this goal and have a transformative impact on people’s employment outlook. When part of a holistic strategy, technology supports scalable solutions that connect people, expand opportunity, and help address global challenges’ Its said.