Return to National productivity measures

Inputs – Labour – Skills

  • The future depends on how well nations develop the knowledge and skills of their people:

    • China and India already produce over 5 million graduates every year

    • Shanghai topped a recent OECD test for reading, maths and science for 15-year-olds, America was 17th, Britain a lowly 25th

  • The key is to get the right mix of skills – there’s plenty of media and professional graduates nowadays but where’s the job creators, the entrepreneurs and lieutenant managers

 

  • To complicate things further, we are seeing a growing talent mismatch – the Western economies have built a workforce optimised for mid-20th-century national industries, yet the jobs now being created are for 21st-century global ones – we need knowledge workers, not factory workers, and there just aren’t enough of the former – companies across the globe consistently cite talent as their top constraint to growth

  •  According to McKinsey, In the United States, for example, 85 percent of the new jobs created in the past decade required complex knowledge skills – analyzing information, problem solving, rendering judgment, and thinking creatively – and with good reason: by a number of estimates, intellectual property, brand value, process know-how, and other manifestations of brain power generated more than 70 percent of all US market value created over the past three decades

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