Randstad and SEO launch research report "Into the Gap": The qualitative mismatch in EU and US labor markets
Effective and modern employment markets benefit from a long-term perspective. The current economic state of affairs has altered employment projections but the underlying trends have not changed: population growth continues to slow down, the impact of aging is growing, the demand for higher educated people rises and there is a permanent demand for elementary workers. In fact, even with the current surpluses on the labor market, across sectors shortages and surpluses coexist. Industries like healthcare, science and engineering already have trouble finding people with the right skills; a clear mismatch between supply and demand. This is one of the findings of "Into the Gap. Exploring Skills and Mismatches", the latest research report conducted by Randstad and SEO Economic Research.
"Into the Gap" was launched yesterday in Brussels during a seminar at the Permanent Representation of the Netherlands to the EU. Speakers on the panel included Zoltán Kazatsay, Deputy Director General Employment, Social Affairs and Inclusion; Veronica Nilsson of the European Trade Union Confederation, and Philippe de Buck of BUSINESSEUROPE.
Ben Noteboom, CEO of Randstad Holding comments: "Finding people with the right skills is increasingly difficult in a constantly changing world. We see discrepancies between the educational choices people make and the needs of the labor market, influenced by globalization and technological developments. Some traditional industries like agriculture or manufacturing continue to diminish and will have less jobs available. But people working in these industries will not immediately have the right set of skills to be able to work in emerging sectors such as IT and healthcare. Closing this gap will benefit employers, employees and society as a whole."
Transition is key
Effective labor markets are characterized by fluid transitions which contribute to productivity and economic growth: people entering the labor market, either after finishing their education or from unemployment, and moving from one job to the next. This increased mobility leads to more transitions which in turn lead to fewer mismatches and less unfilled vacancies. Mismatches occur when people are either under- or overqualified for a job (level of education) or if their field of studies and experience do not match the developments in the labor market.
To restore the dynamics on the labor market, recommendations from Randstad include formulating policies to stimulate direct work-to-work mobility and encourage mobility between all sectors in the economy, also geographically. In addition educational and training provisions need to be improved. Private and public employment agencies can be used as transition agents.
Furthermore there should be a balance between cleaning up budget deficits and growth programs to encourage job creation. Sectors with shortages need room to grow. Policy makers should take a fresh look at employment protection regulation, unemployment benefits, training on the job and pensions. Finally, modern labor relations can play a leading role in support of job creation.
The complete report, an executive summary and a presentation about "Into the Gap" are available at http://www.randstad.com/press-room/research-reports.
Randstad specializes in solutions in the field of flexible work and human resources services. Our services range from regular temporary staffing and permanent placement to inhouse, professionals, search & selection, and HR Solutions. The Randstad Group is one of the leading HR services providers in the world with top three positions in Argentina, Belgium & Luxembourg, Canada, Chile, France, Germany, Greece, India, Mexico, the Netherlands, Poland, Portugal, Spain, Switzerland, and the United States as well as major positions in Australia, Japan and the UK. End 2011 Randstad had approximately 28,700 corporate employees and around 4,700 branches and inhouse locations in 40 countries around the world. Randstad generated a revenue of € 16.2 billion in 2011. Randstad was founded in 1960 and is headquartered in Diemen, the Netherlands. Randstad Holding nv is listed on the NYSE Euronext Amsterdam, where options for stocks in Randstad are also traded. For more information see www.randstad.com.
About SEO Economic Research
SEO Economic Research carries out independent applied economic research on behalf of the government and the private sector. The research of SEO contributes importantly to the decision making processes of its clients. SEO Economic Research is connected with the University of Amsterdam, which provides the organization with invaluable insight into the newest scientific methods. Operating on a not-for-profit basis, SEO continually invests in the intellectual capital of its staff by encouraging active career planning, publication of scientific work, and participation in scientific networks and in international conferences. For more information visit http://www.seo.nl/en/home/
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02 July 2012