McKinsey is forecasting a worsening shortage of university educated and vocationally trained people in China by 2020.
According to new McKinsey research, at the lower end of the labor market, in 2020 there will be 23 million more people than jobs suited for their limited education (primary school or less). At the upper end, we project that Chinese employers will demand 142 million more high-skilled workers—those with university degrees or vocational training—or about 24 million more than the country will likely supply. Companies could fill this high-skilled labor gap with less-skilled workers, but this would result in productivity losses or poorer quality products and services. Other companies may leave roles unfilled, delaying the decision to grow or expand. McKinsey estimates that if China does not bridge this gap by 2020, the opportunity cost could reach some $250 billion (about 2.3 percent of GDP)—greater than the economic output of Hong Kong or Israel.
When needs are specific and proprietary, companies may be best served by doing it themselves. For example, Newport News, a ship-building company based in the state of Virginia in the United States, recruits students to its four-year Apprentice School program that teaches 19 different high-skilled trades. While they learn, students also work at the shipyard. The program breeds tremendous loyalty: 80 percent of graduates are still employed by the company ten years later, and a large percentage of senior management attended the program.
McKinsey Profiles a new generation of Chinese Consumers
If you liked this article, please give it a quick review on ycombinator or StumbleUpon. Thanks
Wang is a prolific business-oriented writer of emerging and disruptive technologies. He is known for insightful articles that combine business and technical analysis that catches the attention of the general public and is also useful for those in the industries. He is the sole author and writer of nextbigfuture.com
, the top online science blog. He is also involved in angel investing and raising funds for breakthrough technology startup companies.
He gave the recent keynote presentation at Monte Jade event with a talk entitled the Future for You. He gave an annual update on molecular nanotechnology at Singularity University on nanotechnology, gave a TEDX talk on energy, and advises USC ASTE 527 (advanced space projects program). He has been interviewed for radio, professional organizations. podcasts and corporate events. He was recently interviewed by the radio program Steel on Steel on satellites and high altitude balloons that will track all movement in many parts of the USA.
He fundraises for various high impact technology companies and has worked in computer technology, insurance, healthcare and with corporate finance.
He has substantial familiarity with a broad range of breakthrough technologies like age reversal and antiaging, quantum computers, artificial intelligence, ocean tech, agtech, nuclear fission, advanced nuclear fission, space propulsion, satellites, imaging, molecular nanotechnology, biotechnology, medicine, blockchain, crypto and many other areas.