What is wrong with labor markets?
Labor markets have been slow to keep up with the rapid, major changes that have fundamentally overhauled the global economy. So while demand for labor has skyrocketed, inefficiencies in the market have led to millions of people unable to find work, even as job markets like healthcare and tech struggle to fill their openings. Meanwhile, a good majority of people who do have jobs feel overqualified or underutilized. The result is a huge loss of potential for our economy, and millions of people dealing with unemployment or underemployment.
According to a report from the Mckinsey Global Institute, in major countries around the world, 30-45% of the working population is unemployed or working part-time. Adding up these numbers for the US, China, Japan, India, Brazil, Germany, and the UK, that’s 850 million people.
What can online talent platforms do?
Sites like Monster and LinkedIn provide huge aggregates of job postings and resumes and while it is difficult for companies to sift through the huge load, they can generate significant benefits for the global economy. Countries like Greece, South Africa, and Spain who see perpetually high rates of unemployment can benefit most from platforms like this.
However, online talent platforms have not yet reached their potential. According to Mckinsey, up to 540 million people could benefit from talent platforms by 2025. The main issue with the current systems is not a lack of talent but a lack of qualified talent, especially for higher level roles or niche specialties. The hope is that talent platforms continue to grow and innovate, helping people find more suitable jobs more quickly, and allowing companies to identify and recruit candidates as well as motivate them once they start work.
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