Labor Market Data Shows No Company or Industry is Immune from Looming Talent Shortage & Skills Disruption; Suggests Urgent Action for Leaders to Mitigate Business Risk
With an impending talent shortage on the horizon and massive skills disruption already underway, new analysis from Lightcast—a provider of global labor market data, analytics, and expert guidance—reveals the entire Fortune 1000 could be at severe competitive disadvantage if C-suite leaders don’t take urgent action to build a better talent strategy.
The landmark research, “The Lightcast Workforce Risk Outlook,” finds the “rising storm” of labor shortages and rapid pace of skills disruption are already impacting businesses, and it scores over 1000 multinational companies based on the magnitude these risks pose to their operations.
“The Workforce Risk Score doesn’t mean these companies are doing something ‘wrong’—instead, it assesses the external labor market pressures they face and how these will affect their workforce sustainability, competitiveness and future growth,” said Cole Napper, VP of Research & Innovation at Lightcast. “Frankly, these are challenges CHROs and HR teams have been losing sleep over for years, and we have the impact data to validate their concerns and explain why now is the critical time to act.”
Early Impacts Demand Swift, Unified Action
The research points out that already 72% of CEOs say talent gaps and shortages are their top business challenge. By 2030, more than 85% of jobs could go unfilled due to skills mismatch, resulting in some $8.5 trillion in unrealized revenue. Companies also admit that failure to attract talent is now the fourth biggest risk they face, and 33% have already suffered a loss as a result in the last 12 months.
While CHROs and their teams have traditionally owned strategic workforce planning, these new insights overwhelmingly show the impending labor crisis requires CEOs, CFOs, and COOs to work alongside CHROs to mount an urgent and unified response.
“The C-suite has become accustomed to having an infinite talent pool, but that’s no longer the case due to AI, demographic shifts, skilled talent, and immigration policies,” Napper said. “Because of the magnitude of these challenges, talent management must be part of your organization’s long-term plan. It’s not enough to simply align talent and business strategies; C-suite leaders must equate them, or risk not having enough people and skills to do the work. The US economy will be millions of employees short of demand relatively soon. Have you ever seen fast food workers go under contract? You may see uncommon labor practices like that in the coming years to mitigate the risk.”
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No Company is Immune—Workforce Risks Demand Urgent Action
The Risk Outlook features an interactive dashboard that lets companies dive into the factors that influence each organization’s score, which is based on over 2.5 billion data points and more than 33,000 skills mapped across 15 critical industries.
The comprehensive analysis reveals several key insights:
- No company is exempt from the impacts, with no organization or industry earning a zero risk score.
- Conversely, none earned a 5.0 (the highest and most likely fatal risk rating), suggesting there are steps companies can take now to mitigate the risks.
- Lightcast projects that across the 15 industries included in the Workforce Risk Outlook, there will be a total U.S. workforce shortage of 877,362 workers each year, culminating in a shortage of 4.39 million workers by 2030.
- Drastic skills disruption means companies are no longer just competing against their peers for talent—they’re also competing across industries.
- Companies that are relatively insulated against skills change are most at risk for demographic disruption and vice versa, highlighting a critical skills mismatch, especially where AI is concerned.
To arrive at each score, Lightcast’s analysis considered variables such as industry and occupation risks, skills gaps, inflationary factors, labor pool analysis, competitive pressures and market forecasts. Each company is graded on four key areas—labor supply, labor demand, unemployment rate and disruptive skills—plus an overall score.
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