After a period of global uncertainty which impacted last year’s Index, there are signs emerging of a more positive backdrop for businesses around the world. In past years, we have found that an improving economic environment tends to be linked with tightening labour markets as demand for talent increases and the challenge of recruiting the most sought-after skills begins to impact organizations.
However, there would seem to be cause for optimism this year as there is evidence in our study of a slight easing in some of the key pressures and drivers impacting labour markets, notably rising participation levels and moderate growth relative to the past in employment costs, which will help businesses stay competitive.
While the specific reasons for this development differ from country to country, it can only be good news that the 2017 Index is showing a small decrease of labour market pressures overall. It suggests that, on a country-by-country basis, governments, educational establishments and organizations are becoming more focused on the levers and dynamics driving the supply and demand of skills.