Labor Shortages May Continue Globally

A recent report by the International Labour Organization (ILO) highlights that an aging population, technological changes, a lack of technical skills, and shifts in workers' attitudes toward employment are among the many factors contributing to prolonged labor shortages, posing an ongoing challenge to the global economy.

In its annual report on employment and social issues released last week, the ILO warned that this trend could occur on a global scale. Recent surveys show that 77% of business leaders struggle to find candidates with the right skills—compared to just 35% who reported such difficulties a decade ago.

For example, in the U.S., the U.S. Chamber of Commerce has noted significant labor shortages in transportation, healthcare, social assistance, as well as accommodation and food services.

The European Union has also reported labor shortages in sectors such as construction, information and communication technology, manufacturing, and healthcare. Additionally, the aging population in developed countries is driving increased demand for healthcare workers, a field already facing shortages.

The ILO warned that shortages of healthcare professionals "could become even worse if policymakers do not implement swift solutions," according to the report.

The COVID-19 pandemic has also reshaped workers' attitudes toward employment. Richard Sanders, ILO's Director of Research, noted that about 20% of those affected by COVID-19 left their jobs. Even among those who returned to work, many are now working fewer hours than before.

In the U.S., for instance, between 280,000 and 680,000 people suffering from long COVID have left the workforce. Those who remain employed have reduced their working hours by 2%–3%, equivalent to 20,000–39,000 full-time jobs. Additionally, the number of workers taking sick leave has risen. Burnout and stress are key factors contributing to this trend, particularly among healthcare and hospitality workers.

The technological revolution driven by artificial intelligence (AI), climate crises, and energy transitions will also require workers to acquire new skills. The ILO is concerned that technological advancements will increase demand for new skill sets, leading to more frequent workforce shortages as industries struggle to find qualified employees.

Gilbert Houngbo, Director-General of the ILO, emphasized that labor market imbalances are becoming "increasingly concerning."

Meanwhile, the International Monetary Fund (IMF) recently warned that nearly 40% of the global workforce could be affected by AI, with many losing their jobs due to automation.

In developed countries, the proportion of workers impacted by AI could reach 60%. Half of them may benefit from new technologies, while the other half may face job displacement.