# Korn Ferry Study Reveals Talent Shortage Could Threaten Business Growth in EMEA
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2018-05-02
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Global Talent Crunch Study Forecasts 14.3 Million Worker
Meta Description: Learn how the talent shortage could impact major global economies if not addressed now. Take action to protect your future.
URL: https://financedigest.com/korn-ferry-study-reveals-talent-shortage-could-threaten-business-growth-in-emeahtml

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- _Study Indicates Potential Talent Deficit of 14.3 Million Workers in the Region by 2030 —_
- _$1.906 Trillion Revenue Opportunity Potentially Lost if Talent Shortage Not Addressed —_

Already a major issue, skilled talent shortages will continue to impede growth and if not addressed, could have a significant impact on major global economies by 2030, a study\* by Korn Ferry (NYSE: KFY) reveals today.

“Companies [must work](https://www.financedigest.com/why-employers-rocked-by-the-great-resignation-must-keep-working-mothers-on-board.html "Why employers rocked by the Great Resignation must keep working mothers on board ") to mitigate this potential talent crisis now to protect their future,” said Matt Crosby, senior client partner at Korn Ferry. “Left to run its course, this shortage will severely impact the [growth of markets across](https://www.financedigest.com/tea-pitchers-market-sales-will-witness-stellar-revenue-growth-across-top-regional-pockets.html "Tea Pitchers Market Sales Will Witness Stellar Revenue Growth Across Top Regional Pockets") Europe, the Middle East and Africa (EMEA) with a talent deficit of more than 14.3 million workers and $1.906 trillion in unrealised annual revenue across the region at 2030.”

Korn Ferry’s [_Global Talent Crunch_](https://infokf.kornferry.com/global_talent_crunch_web.html) study estimates the gap between future talent supply and demand in 20 major economies at three milestones: 2020, 2025 and 2030, and across three sectors: financial and business services; technology, media and telecommunications (TMT); and manufacturing.

The talent deficit issue could threaten [economies and sectors](https://www.financedigest.com/why-the-financial-services-sector-could-thrive-in-the-subscription-economy.html "Why the Financial Services sector could thrive in the subscription economy") across EMEA:

- Germany could experience the largest deficit in EMEA of 4.9 million workers and could lose out on $629.89 billion of annual revenue by 2030 if labour [shortages are not addressed](https://www.financedigest.com/exclusive-danone-ramps-up-u-s-baby-formula-shipments-to-address-shortage.html "Exclusive-Danone ramps up U.S. baby formula shipments to address shortage") – equivalent to 14 percent of its economy.
- London’s financial [market dominance](https://www.financedigest.com/facebook-faces-3-2-billion-uk-class-action-over-market-dominance.html "Facebook faces .2 billion UK class action over market dominance") is under threat – the U.K. faces a shortage of more than half a million workers in financial and [business services](https://www.financedigest.com/euro-zone-april-business-activity-grows-on-strong-services-demand-pmi.html "Euro zone April business activity grows on strong services demand – PMI"), losing out on $89.98 billion in annual revenues by 2030 – equivalent to 7 percent of the sector.
- Financial and business services are hardest hit across the EMEA region – [losing out on more than $358.70 billion](https://www.financedigest.com/norways-wealth-fund-loses-record-174-billion-in-first-half-of-2022.html "Norway’s wealth fund loses record 4 billion in first half of 2022") in annual revenue by 2030.
- [Technological advancement](https://www.financedigest.com/the-automotive-interior-materials-market-to-undergo-decisive-technological-advancements.html "The Automotive Interior Materials Market To Undergo Decisive Technological Advancements") across all sectors could be hindered by an acute labour shortage – TMT faces a shortage of more than 700,000 workers, with the sector losing out on annual revenues of $103.25 billion by 2030.
- Germany and the U.K. face the highest TMT [sector opportunity](https://www.financedigest.com/an-analysis-of-vc-investment-in-the-defence-sector-and-the-mods-readiness-to-exploit-digital-opportunities.html "An analysis of VC investment in the Defence sector and the MOD’s readiness to exploit digital opportunities") cost – losing out on $30.70 and $27.70 billion in annual revenue respectively by 2030.
- Manufacturing is [facing a talent deficit crisis in EMEA of more than 1.1 million workers](https://www.financedigest.com/factbox-what-european-companies-are-doing-as-workers-face-high-inflation.html "Factbox-What European companies are doing as workers face high inflation") by 2030, despite having a surplus of highly skilled workers in 2020.
- Germany’s manufacturing powerhouse status at risk, ranking highest within EMEA and second highest among the 20 [markets studied for unrealized revenue within the manufacturing sector](https://www.financedigest.com/expansion-in-manufacturing-sector-has-increased-demand-for-industrial-cooling-system-market.html "Expansion In Manufacturing Sector Has Increased Demand For Industrial Cooling System Market") ($77.93 billion by 2030).

Globally, the study reveals a potential crisis with a sizable mismatch between [supply of available workers and business demand:](https://www.financedigest.com/how-can-businesses-digitalise-supply-chains-to-meet-demand.html "How can businesses digitalise supply chains to meet demand?")

- The United States, Japan, France, Germany and Australia face the largest threat in the [near term](https://www.financedigest.com/automotive-glass-market-to-witness-sales-slump-in-near-term-due-to-covid-19-long-term-outlook-remains-positive.html "Automotive Glass Market to Witness Sales Slump in Near Term Due to COVID-19; Long-term Outlook Remains Positive"), with a combined opportunity cost of $1.876 trillion by 2020.
- Labour [shortages in global](https://www.financedigest.com/explainer-global-energy-shortage-or-a-coincidence-of-regional-crises.html "Explainer-Global energy shortage or a coincidence of regional crises?") financial and business services are the most acute, with a potential deficit of 10.7 million workers globally by 2030.
- [Technological advancement](https://www.financedigest.com/specialty-printing-consumables-market-rising-adoption-of-advanced-technologies-to-bolster-markets-growth-prospects.html "Specialty Printing Consumables Market – Rising Adoption of Advanced Technologies to Bolster Market’s Growth Prospects") across all sectors of the global economy could be hindered by an acute global labour shortage of 4.3 million TMT workers by 2030.
- Manufacturing is facing a [global talent deficit crisis of 7.9 million](https://www.financedigest.com/global-covid-19-cases-hit-250-million-eastern-europe-infections-at-record-levels.html "Global COVID-19 cases hit 250 million, eastern Europe infections at record levels") workers by 2030, despite being the only sector with a surplus of highly skilled workers in 2020.

- India is the only [economy in the study](https://www.financedigest.com/frameplay-announces-new-attention-metric-in-video-game-environments-validated-in-partnership-with-dentsus-attention-economy-team-by-first-to-market-studies.html "Frameplay Announces New Attention Metric in Video Game Environments, Validated in Partnership with dentsu’s Attention Economy Team by First-to-Market Studies") maintaining a talent surplus in 2025 and 2030.

Matt Crosby, Korn Ferry said: “Companies across EMEA must act now to future-proof their [business](https://www.financedigest.com/truic-evaluates-the-biggest-business-incorporation-companies-in-the-us.html "TRUiC Evaluates The Biggest Business Incorporation Companies in The US"). Left unaddressed, the talent crunch will severely impact the [growth of key markets and sectors across the region](https://www.financedigest.com/automotive-soft-trim-interior-materials-market-size-key-players-growth-factors-regions-and-applications-industry-forecast-by-2026.html "Automotive Soft Trim Interior Materials Market Size, Key Players, Growth Factors, Regions and Applications, Industry Forecast by 2026"), with an opportunity cost of $1.906 trillion in annual unrealised revenue by 2030.”

“The right talent is the greatest [competitive advantage](https://www.financedigest.com/how-automation-gives-fs-leaders-a-competitive-advantage.html "How automation gives FS leaders a competitive advantage") there is for an organisation – and that talent is getting scarcer every day,” said Crosby “Our study reveals that there already isn’t enough skilled talent to go around and by 2030, organisations and economies could find themselves in the grip of a talent crisis. In the [face of such acute talent shortages](https://www.financedigest.com/britain-facing-tomatoes-shortage-after-overseas-harvests-disrupted.html "Britain facing tomatoes shortage after overseas harvests disrupted"), workforce planning and a comprehensive understanding of the talent pipeline are critical.”

“The future will be built on the [effective partnership between people and technology](https://www.financedigest.com/negative-effects-of-technology.html "Negative effects of technology"). The acute demand for workers with the right skills that businesses need, rather than the much-discussed domination of [technology in business](https://www.financedigest.com/how-technology-can-support-insurance-business-growth.html "How technology can support insurance business growth"), could become the defining issue of our age,” said Crosby.

**EMEA** [markets studied](https://www.financedigest.com/area-rug-market-study-current-scenario-and-forecast-to-2027.html "Area Rug Market Study – Current Scenario and Forecast to 2027")**Total unrealised output 2030 (USD bn)****Total labour deficit 2030**Germany629.94,904,436U.K.407.62,990,955Russia297.12,848,969France214.61,518,593[Saudi Arabia](https://www.financedigest.com/saudi-arabias-king-crown-prince-send-condolences-on-queen-elizabeths-death.html "Saudi Arabia’s king, crown prince send condolences on Queen Elizabeth’s death")206.8662,522Netherlands71.3548,436UAE50.6111,217[South Africa](https://www.financedigest.com/covid-cant-break-south-africas-love-affair-with-shopping-malls.html "COVID can’t break South Africa’s love affair with shopping malls")29.0746,651


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