The Salary SurgeGlobal overview

The forecasted talent deficit of 85.2 million workers across the 20 economies analyzed could result in employers having to pay an annual wage premium of $2.515 trillion by 2030.

The Salary SurgeGlobal overview

The forecasted talent deficit of 85.2 million workers across the 20 economies analyzed could result in employers having to pay an annual wage premium of $2.515 trillion by 2030.

By 2030, we estimate the global supply of highly skilled labor to fall short of demand by 16%. This undersupply will push up salaries for available workers, so that wage bills increase directly in proportion to labor shortages. The expected talent deficit of 85.2 million workers across the 20 economies analyzed could result in employers having to pay an annual wage premium of $2.515 trillion by 2030. The US faces the biggest wage premium, estimated to reach $296.48 billion as soon as 2020, and rising to $531.25 billion by 2030. The term wage premium refers to the additional amount employers will need to pay over and above the amount that wages would rise over time due to normal inflation to secure the right talent.

As technological developments continue, employers are increasingly automating routine tasks, decreasing demand for lower-skilled workers. But highly skilled workers who can harness technology advances and lead change are in ever-greater demand. This is driving the emergence of two labor markets:

  • An employees’ market of skilled workers who can command high salaries,
  • An employers’ market for low-skilled labor, where there’s no shortage of workers and little pressure on wages as a result.

The shallow pool of skilled workers relative to demand is driving the Salary Surge. The larger a country’s talent shortfall, the more we can expect wage costs to rise.

WHAT DO YOU THINK?


Which country do you think will have the biggest wage premium at 2030?

TALK TO AN EXPERT

Global supply and demand of highly skilled workers over time

Global supply and demand does not take into account geographic borders. In reality, one country’s worker surplus may not offset another country’s worker deficit.

Download
The full report

To receive our report as a PDF please click on the button below and enter your details.

To download The Salary Surge report as a PDF please click on the button below.

Understand the salary surge