In this article, we will look at the 15 countries with the highest labor shortages In the world. We have also discussed the latest labor shortages in the US. If you want to skip our detailed analysis, head straight to the 5 Countries With The Highest Labor Shortages In The World.
The aftermath of the COVID-19 pandemic is often called 'The Great Resignation, as it witnessed a major labor force disruption in the United States. With over 50 million workers quitting their jobs in 2022, following a trend of 47.8 million resignations in 2021, the workforce experienced a shift. However, in 2023, this trend began to ease, with 30.5 million workers resigning by August.
As workers sought improved work-life balance, flexibility, higher compensation, or a stable company culture, it drove them to transition to other jobs. As the US Chamber of Commerce closely monitors job opening trends, labor force participation, and quit rates countrywide, it noticed how certain industries bear the brunt of these dynamics. Despite American businesses creating hundreds of thousands of jobs monthly, there's a major shortage, particularly in the professional and business service sector. Hence, to cope with shortages, businesses around the US are engaging in deals and collaborations to fill their job positions as quickly as possible.
For instance, United Parcel Service, Inc (NYSE:UPS) recently made a deal with the Teamsters Union, promising United Parcel Service, Inc (NYSE:UPS) drivers an average of $170,000 per year. This could solve the long-standing problem of truck drivers shortages. The job has often been overlooked and not well-paid, making it unattractive to job seekers. The new agreement aims to change that by offering better pay and benefits. United Parcel Service, Inc (NYSE:UPS) hopes that by investing more in its drivers, it will boost productivity and bring about positive changes in the logistics industry.
While United Parcel Service, Inc (NYSE:UPS)’s stock initially dropped because of this deal's costs, it's seen as a necessary step. The $170,000 package is designed to attract experienced drivers, essential for successful parcel delivery. This decision also sets the stage for introducing new technologies like drones and hubs in the delivery process.
Despite the growing labor shortages, a number of industries are being revolutionized by AI and automation and the fast food industry is no exception. For example, Chipotle Mexican Grill, Inc (NYSE:CMG) is testing an avocado-cutting robot, "Autocado," designed to reduce guacamole prep time by 50% and thus, addresses a task that takes employees about 50 minutes. While the robot efficiently cuts, cores, and peels avocados, human employees still handle tasks like hand-mashing and adding ingredients. The robot is developed in collaboration with Vebu Labs and is part of Chipotle Mexican Grill, Inc (NYSE:CMG)’s initiatives to improve employee experiences, including faster grills and order streamlining.
Nevertheless, Chipotle Mexican Grill, Inc (NYSE:CMG) is set to hire 19,000 employees in anticipation of its busy "burrito season" from March to May. The company introduced new benefits to address Gen Z's financial challenges. The benefits include a free Employee Assistance Programme with six counseling sessions, tackling mental wellbeing. Chipotle Mexican Grill, Inc (NYSE:CMG) will pay off student debt and contribute up to 4% of an employee's salary to their 401(k) when eligible, using SoFi's Student Loan Verification. Additional perks involve financial education from SoFi and credit score improvement through Cred.ai.
15 Countries With The Highest Labor Shortages In The World
A porcine cell platform in a Mount Sinai Hospital laboratory with medical professionals operating a microscope.
Methodology
For countries with the highest labor shortages in the world, we utilized Manpower Group’s Report on Talent Shortages for 2024 to get the percentage by country of skilled labor shortage. In the case of similar skilled labor shortage percentages, we utilized the World Bank’s data on the ageing population (as % of total population) by country as tiebreaker. The country with a higher percentage of ageing population was ranked higher.
In case both the ageing population and skilled labour shortages percentages are similar for the two countries, we have looked at permanent migrants accepted in 2021 to break the tie. The list is presented in ascending order.
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15. Singapore
Skilled Labor Shortage: 79%
Ageing Population: 15%
Singapore is addressing its workforce shortages by hiring 260,000 professionals, with a focus on IT & Software, Banking, and Engineering sectors. The hiring surge comes in response to a decline of 194,000 foreign workers during the pandemic. Sales and compliance specialists, engineers, software developers, product managers, and AI specialists are particularly sought after. Singapore is one of the countries with a shortage of IT professionals.
14. Slovakia
Skilled Labor Shortage: 79%
Ageing Population: 17%
In 2022, Slovakia witnessed a major increase in Indian workers, quadrupling their numbers to 1,350 due to severe staff shortages in the IT and automotive sectors. The Labour, Social Affairs, and Family Office confirmed this spike, highlighting the assistance provided by citizens from India and other Asian countries in filling crucial job vacancies, such as truck drivers and welders. The trend continues, with the Jaguar Land Rover factory in Nitra hiring an additional 173 workers from India.
13. Romania
Skilled Labor Shortage: 79%
Ageing Population: 19%
A 2019 national study in Romania highlighted a 300,000-person labor shortage, projected to reach 549,000 by 2023. Randstad HR Trends Study suggested a workforce deficit of one million in the country. Migration of professionals which includes healthcare workers, temporary laborers, IT specialists, and students, contributes to this gap. It is one of the countries facing the greatest skill shortages.
12. Hongkong
Skilled Labor Shortage: 79%
Ageing Population: 20%
According to Bloomberg, Hong Kong plans to address a labor shortage by easing entry rules and recruiting 27,000 foreign workers, targeting sectors with severe shortages such as construction and aviation. It is one of the countries with shortage of skilled workers.
11. Brazil
Skilled Labor Shortage: 80%
Ageing Population: 10%
Brazil is facing critical labor shortages in key sectors and services such as health, and ICT, as outlined by the 2018 OECD Skills for Jobs database. Occupations in personal care, protective services, and health professionals show a huge deficit, with a shortage of medical imaging technicians and ICT professionals, numbering in the thousands. Customer service clerks and business professionals are also in high demand. In contrast, there's a surplus in electrical trades, metal-related trades, and sales workers.
10. United Kingdom
Skilled Labor Shortage: 80%
Ageing Population: 19%
Foreign interest in UK jobs has doubled since the post-Brexit points-based immigration system began, especially from non-EU countries like India and Nigeria, according to Indeed. The share of foreign job searches rose to 5.5% in June 2023, compared to 2.2% in April 2021. The top job categories are social care and software development. The number of permanent migrants accepted in the UK in 2021 was 338,300. The UK is the also one of the best countries for education.
9. Canada
Skilled Labor Shortage: 80%
Ageing Population: 19%
Canada plans to welcome 485,000 permanent residents in 2024, rising to 500,000 in 2025 and maintaining the same in 2026. The Immigration Levels Plan focuses on addressing labor shortages, promoting economic growth, and family reunification. French-speaking immigration targets increase to 8% by 2026. Critical sectors like health, STEM, trades, and agriculture are prioritized. Express Entry aims for 117,500 admissions yearly, and Provincial Nominee Program targets 120,000 by 2025. The number of permanent migrants accepted in 2021 in Canada was 401,100.
8. France
Skilled Labor Shortage: 80%
Ageing Population: 22%
France's hydrogen sector faces a workforce challenge and hence, requires tens of thousands of workers by 2030, with over 100,000 projected jobs. However, labor shortages and insufficient training have been hindering progress. In 2022, 6,800 positions existed in the sector, up 77% from 2019. It is one of the countries with labour shortage in Europe.
7. India
Skilled Labor Shortage: 81%
Ageing Population: 7%
India is facing a unique labor challenge despite a growing workforce. Annually, 12 million young Indians enter the job market, set to reach 1.04 billion by 2030. Despite this demographic advantage, India grapples with a shortage of skilled and unskilled labor. The implications are vast and will affect both its domestic and international manufacturing capabilities. It is one of the top 10 countries with the highest labor shortages in the world.
6. Ireland
Skilled Labor Shortage: 81%
Ageing Population: 15%
Ireland is struggling with a severe labor shortage crisis, as revealed by an Irish Sun investigation. Across 10 key industries, there are approximately 100,000 vacancies, with construction, hospitality, and healthcare sectors being the hardest hit. To address the shortfall, reland is bringing in 40,000 non-EU workers annually. The government has expedited the issuance of non-EU visas for skilled workers, with 39,955 issued last year.
