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Labor market polarization is widening, ManpowerGroup reports

January 21, 2016

The polarization of the labor market is widening with workforce skills not keeping up with business needs, according to a new report from ManpowerGroup Inc. (NYSE: MAN) called “Human Age 2.0: Future Forces at Work.”

Forces such as shifting demographics, rapid globalization and technological revolutions and an uncertain business environment are knocking labor markets out of sync, according to the company. And this results in high unemployment alongside unfilled jobs and stagnant wages.

“The Human Age 2.0 need not be a battle of human versus robot,” said ManpowerGroup Chairman and CEO Jonas Prising. “New jobs are being created, with many individuals able to take on more fulfilling roles, but they will require the training to do so.”

Prising continued: “The Haves, those with in-demand skills that can become more productive using new tools — in industries like IT or engineering — will continue to see wages increase. The Have Nots, with low or outdated skills, will see wages stand still or decline as that kind of work increasingly gets simplified or automated. Ultimately, the future is bright with opportunities and growth, but continued learning and skills development for human capital is essential.”

Prising is leading ManpowerGroup’s delegation to the world Economic Forum’s annual meeting this week in Davos-Klosters, Switzerland.