Nearly two-thirds (63 percent) of employers reported that they are concerned about the growing skills gap in the U.S. And with good reason: A new analysis of college degree completions vs. job demand from CareerBuilder and Emsi shows that the next generation of workers won’t be able to fill the void.
According to a national Harris Poll survey of more than 2,300 employers, commissioned by CareerBuilder, half (49 percent) of employers have experienced a negative impact on their business due to extended job vacancies:
- 25 percent reported a loss in revenue.
- 43 percent pointing to lower productivity.
Skills Gap: Demand Outweighing Supply
To illustrate the current scope and potential effects of an already debilitating talent deficit, data experts at CareerBuilder and Emsi looked at a sample of college programs that aren’t producing enough grads to keep pace with labor market demand. While the programs highlighted in the study have grown at least 10 percent from 2009-2014 and had at least 10,000 completions in 2014, according to CareerBuilder’s Q2 2015 nationwide survey, they’re still undersupplying candidates for occupations that already see big gaps between the number of jobs posted and the number of hires companies make each month.
For example, 157,591 people graduated with degrees in computer and information sciences in 2014, a number that increased 41 percent since 2009. While the growth is encouraging, it’s not enough. On average, from Jan. 2015 to Jan. 2016, 689,685 computer and information technology jobs were posted each month in the U.S. However, the average number of hires was only 209,035 – leaving a gap of 480,650 positions.
While this is a critical issue in STEM-related fields (science, technology, engineering and math), it extends to other areas as well. The analysis shows notable gaps for human resources management, economics, legal assistant/paralegal and graphic design, among others. Check out the chart for the full list.
The Skills Gap, The Information Gap — and Find Your Calling
As it turns out, nearly half (47 percent) of employers believe the skills gap is actually an information gap, meaning people are not aware of the jobs that are available and growing, according to a 2015 Harris Poll survey. Looking at it from the student’s perspective, nearly 1 in 4 high school seniors (24 percent) said they have no idea what career they want to pursue.
In response to these issues, late last year, CareerBuilder worked with Emsi to launch a powerful website called FindYourCalling.com. This website puts data science and helpful insights behind the process of choosing a career. Visitors to the site start with a simple, interactive personality test for careers. Find out more about Find Your Calling here.
This analysis utilized Emsi’s extensive labor market database, which pulls from more than 100 national and state employment resources. Find out more about how Emsi’s data can help your business find the right candidates.