Many of Asia’s economies are discovering how difficult it has become to continue sustained growth.
A recent report published by the Workforce Analytics Institute (WAI) has found that skill shortages, caused by less-than-adequate education needed to prepare workers, are becoming a problem for many nations in the region.
The report, which focused on factors such as demographics within a country, labor supply and compensation, predicts a big shortage of qualified and properly educated workers. In a few of the region’s nations, the percentage of the population with an education beyond the secondary level is less than 10%.
According to the report, these economies “have a distance to go before their workforce is fully equipped to work in an international environment.”
Malaysia, Singapore and Hong Kong rank highest among Asian nations on the verge of experiencing severe skilled worker shortages. The lack of of supply comes at a time when skilled labor across Asia is in demand.
Although countries such as Singapore, South Korea, Hong Kong and Japan, have relatively better education levels, they are still seeing a decrease in their labor supply due to a lack of a working-age population needed to replace retiring workers.