○ Due to labor shortages, domestic and foreign companies are increasingly facing business delays—such as in plant construction—or struggling to secure specialists in AI and emerging technologies. Experts point out that this is driven not just by demographic decline, but also by a critical mismatch in skilled labor.

• Consequently, it is necessary to examine the underlying factors of this global talent crisis across major regions, and review tailored talent strategies and action plans for domestic enterprises expanding into these markets.

○ Over the past decade, the global shortage of skilled labor has steadily worsened, directly impacting corporate growth and productivity.

• The rate of global talent shortage has more than doubled, surging from 35% in 2013 to 74% in 2024.

• By industry, shortages have reached critical levels across multiple sectors, led by Healthcare (77%), Energy & Utilities (76%), and Information Technology (76%).

• Regionally, labor shortages are pervasive across most markets, exemplified by the high rate of unfilled manufacturing vacancies relative to job demand in the United States.

○ The talent shortage goes beyond quantitative availability with qualitative capability gaps and mismatches being the core issues.

• While education levels have risen globally, a decline in basic adult competencies has led to an expanding proportion of lower-skilled workers.

• In OECD countries, mismatches between workers' qualifications, skills, or fields of study and their actual job requirements are worsening, along with a deepening "over-skilling" phenomenon (where individuals take jobs below their education and skill levels).

• As AI and technological innovation accelerate, transitioning workers into talent equipped with the skills and multidisciplinary capabilities required for future jobs is difficult to achieve in the short term, fueling intense competition for talent.

○ Talent shortages and mismatches manifest differently across North America, Europe, and Asia. Therefore, when expanding abroad, companies must understand the unique supply-and-demand dynamics of each major region to establish and execute differentiated talent strategies.

• While the U.S. and Europe possess high technological standards and mature labor markets, competition to secure talent is at its fiercest. When entering these markets, companies must recognize the severe vacancy rates driven by shortages in highly skilled labor (manufacturing, construction, etc.) and advanced technology talent.

• In contrast to Japan and South Korea, which face severe labor shortages due to demographic decline, countries like China and Taiwan struggle with mismatches among highly educated populations (over-skilling). In India and Southeast Asia, despite abundant labor pools, the key challenge lies in addressing the lack of immediate job-ready skills, which necessitates extensive on-the-job retraining.

○ From a business perspective, companies must evaluate regional labor shortages and mismatches to focus not only on recruitment but also on upskilling and retraining to bridge the capability gap. In short, the strategy must shift from 'Buying Talent' to 'Building Talent.' Securing a sustainable pipeline for talent supply requires forging strategic partnerships and collaborating closely with local educational institutions.