Skills Gaps: Myths and Realities
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The document discusses skills gaps and shortages. It outlines several factors that have led to changes in skills requirements, including the decline of corporate training departments, rapid growth in healthcare and IT, and jobs being automated or outsourced. This has resulted in a surplus of workers without needed skills and difficulties for companies hiring. The skills shortage is presented as more of a perception problem, with local factors being more important than national statistics. Expectations of disruption, skills mismatches, and the need for training and agility are discussed.
Skills Gaps: Myths and Realities
- 1. The SkillsSkills The Gap Gap
- 3. Overview • Identify and Explain • Changes Driving Skills Requirements • Changes in Skills Utilization • Perceptions of • Five Facets of Skills Shortage
- 4. History • All volunteer military / no draft • Decline of corporate training dept • New answers to make or buy • New focus on the core • Healthcare / IT • Rapid demand growth • Changing Status • Literal search for action ready talent
- 5. Any job that can be automated will be Any job that can be outsourced will be
- 6. Cities Are Becoming Guild - Like
- 7. Population Times Economic Activity
- 8. The Standard of Living is Rising Everywhere
- 9. Consequences of Offshoring • Offshoring happens at a specific location in a specific region. • Those workers become surplus in the local economy • There’s no shortage (or the jobs would be ‘strategic’) • Workers have two choices • Apply for better paying gigs: they’re underqualified • Apply for lower paying gigs: they’re overqualified • Offshoring creates an abundance of underqualified applications
- 10. Blueseed
- 11. The education system has failed
- 12. Supply and Demand • 95 M workers w/o college degrees • Compete for 80 M jobs that don’t require • Most newly minted jobs require college • Production does not meet needs • This group has to compete w/college crowd • = More unqualified applicants
- 13. Unemployment Rate Varies with Education 11.1% 8.4% 6.8% 4.5%
- 14. Does Education Matter? • Peter Thiel Fellowships • Unimaginable Jobs Can’t Be Planned • Technology Shifts Employer Expectations • Most Jobs Becoming Tech Jobs
- 15. New Ways of Evaluating Tech Talent
- 16. Typical Under 32 has 10,000 Hours of Gaming by Age 21
- 17. Misunderstood Resource • 10,000 Hours of Video Gaming = • Volunteering For / Completing Hard Work • Discovering Unwritten Rules • Learning Through Progressive Failure • Collaboration • Mentoring • Persistence • Determination • Envelope Pushing / Hacking
- 18. A Generation • Ready to Be Trained • Knows How To Learn • Undaunted by Failure • Knows How to Collaborate In Uncertainty • Rewarded by Self-Direction • Needs Feedback (even if it’s harsh) • Oriented Towards Next Problem Set
- 19. Companies don't know how to hire
- 20. Basic Paradox: Surplus causes slower hiring
- 21. Complaints of Skill Shortages are a Symptom of Labor Surplus Complaints of Hiring Slowness are a Symptom of Shortage
- 24. Literal Matching 1 ≠ one Engineer ≠ developer Program manager ≠ product manager Mgr ≠ manager Lead designer ≠ design supervisor CEO ≠ VP ATS: Good For Compliance ATS: Bad for Selection
- 25. • Surprise • This view held by MBA professors • Market Fooled By Appearance of Low Quality Surplus
- 26. The problem is entirely regional
- 28. The world today is more about cities than countries
- 29. Each City Has It’s Own Demographic Fingerprint
- 30. National statistics are noise. Local statistics are information
- 31. • Fortune 2500 • 18% of US Population in Top 50 Cities • 22% of Workforce • The Rest (78%) • Cities Under 300K
- 32. This is What Every Regional Labor Market Looks Like Ecosystem Ecosystem 1 1I Retail Hospitality Education Health Care Safety Govt Infrastructure
- 33. Meet your new robot overlords Technology is destroying work as we know it
- 35. One grain of rice on the 1st square. Two grains of rice on the 2nd square. Four grains of rice on the 3rd square. 1 Billion Grains on the 32nd Square
- 36. 1 Billion grains of rice = 6,500 gallons of rice
- 37. Moore’s Law in Context Transistors per Chip iPad iPhone Facebook Google World Wide Web IBM PC #1 Apollo Program You Are Here
- 38. Expect • Disruption • Massive Skills/Work Mismatch • Increased Emphasis on Training and Agility • More Difficulty Understanding Matches • Learning as a Survival Skill
- 39. Conclusions • Skills Shortage • Is an Expectations Problem • Is a Perception Problem • Is a Real Problem • Understand Supply and Demand in Your City
- 40. Questions
- 41. • John Sumser • 415.683.0775 • [email protected]