- Ever wondered why many countries are changing their immigration laws?
- Or, did you know how countries welcome foreign nationals more than before?
- Or, ever thought about how governments are managing the skilled labor shortage?
With the economic system suffering, many countries rely on foreign nationals to help and support their economy. These countries have shortages in education, social demographics, wages, and more, along with skilled workers.
Shortage of skilled labor problems and solutions
Why Skill Shortage?
There are not one but a few reasons why countries are going through skill shortages and welcoming foreign nationals as permanent as well as temporary residents.
A report by Korn Ferry says that “by 2030, more than 85 million jobs could go unfilled because there aren’t enough skilled people to take them.”
Demographic migration, labor market developments, rapid technological changes, and increased globalization have contributed to the alteration of the skill requirement structure and are expected to continue in the future.
Technological innovation plays a large part in shifting the types of jobs being created while altering social demographics and behaviors also play a significant role in skill shortages.
According to Manpower Group’s report, 75% of companies are facing difficulty recruiting qualified workers over the past year.
Also, countries with high economic growth as their educational infrastructure and low educational attainment are likely to suffer more from job vacancies. They may have a tough time adjusting to rapid structural changes. Governments need strategies to manage the causes of the shortage of skilled workers and prioritize educating, upskilling, and reskilling the existing workforce.
The recent data says that the global market could suffer an $8.5 trillion loss in potential annual revenue in 2030 due to skill shortages 43% of organizations are currently going through skill gaps, and 44% of organizations are expected to face this same problem within the next five years.
Only a handful of organizations are keeping themselves secure, and two out of three organizations are not even prepared for the market to shake up. 4 in 10 employees are considering a new job due to stress and burnout. Another reason for the skill shortage in many countries like Canada is the aging population; the number of people retiring is more than the number of fresh employees.
Problems faced by countries are different yet similar. Hence, their strategies for dealing with economic challenges and the labor shortage are also different.
How are countries tackling skill shortages?
Business owners and the governments of many countries are finding ways to fill the skill gaps. Together as well as individually, they are understanding the demand and the gaps and develop strategies. Education, reskilling, and upskilling are emphasized.
A significant role is played by skilled international immigrants in filling these gaps. Governments are focusing on changing and altering their immigration laws to attract, invite, and welcome foreign nationals. Countries are inviting immigrants through permanent residency, investments, work visas, students visa, or visas allowing visitors to work.
International recruiting has become very popular, and employers are seeing the benefits of recruiting international immigrants as immigrants offer foreign market expertise. After witnessing labor shortages, many countries are relying on foreign nationals.
Take the example of Canada. Canada is increasing its target of welcoming immigrants and is making amendments to ease the visa process and limit the processing time. The country is also altering its visa policies to attract more immigrants and students. These policies are changed after knowing the demands of the provinces, territories, industries, and organizations. In the economic category, provinces and territories select many immigrants.
Canada’s recent target is to welcome 485,000 permanent residents in 2024 and 500,000 in 2025, around 1.2% of their population. Nine million baby boomers will reach the retirement age of 65 by 2030 in Canada, and the birth rate has also got its lowest. Also, due to labor shortage, employers were recently hiring candidates without the required skills to fill the job vacancies. Hence, the country relies on foreign nationals to fill Canada’s skill shortage list.
Long-term skill shortage is also a problem in Australia. Australia’s skill shortage list includes more than forty skills in demand, like caring professionals such as doctors, nurses, childcare, retail managers, construction workers, and software programmers. The government is taking steps to change its temporary and permanent visa programs and reviewing its policies.
You can apply for a visa if your skill is listed in the skilled occupation list of Australia and then choose the visa option that suits your situation best example, employer nomination schemes, training vias, temporary skilled shortage visa, etc.
New Zealand is also suffering from gaps between skills in demand and available candidates for jobs. New Zealand’s skill shortage list also consists of skills in demand in the country. According to surveys, fifty sectors in New Zealand reported facing difficulties hiring workers. The government has also opened its routes for people wishing to work in the country and help the country fight the economic crisis.
The United Kingdom and the nations of European nations are also allowing immigrants to enter their countries and help revive the economy. The United Kingdom saw 1.19 million vacancies in September-November 2022. The country has planned to introduce a new immigration program with no sponsor and no job requirements.
Upshot
Skill shortage and finding the right candidate have become challenging for employers and governments. Even the developed countries could not escape this problem and are working to find solutions. These countries are now depending on international immigrants to help them fill job vacancies and are inviting them by changing their existing immigration policies and introducing new ones. Many countries like Australia and Canada have also eased the visa process to save the time of employees and employers.
IPPC visas can help you secure your dream of working and living in a foreign country and help you take advantage of the changing immigration policies of the nations. With an increase in globalization and rising incomes, every year, more and more Indian nationals are going abroad for work, business, education & tourism. To accommodate this, IPPC Visas deals in a complete range of visas and investment programs and assists people in smooth relocation throughout the globe.
