An improving global economy means that 18 out of the 30 countries in the Hays Global Skills Index are experiencing skills shortages.  

The index, which assesses the degree to which employers will have difficulty recruiting skilled labour, found that in most countries the labour market was tightening. The index scale ranges between 0 and 10, with the higher the index score the greater the difficulty for employers in finding skills. 

The report found that no one region outperforms the rest, with some European countries (Germany and Sweden, both 6.3) recording a high index score, while other European countries (Belgium [4.0] and Italy [3.6]) languish near the bottom. Similarly, while Japan (6.6) has the highest index score of all, other Asian countries, such as India (4.2) and Hong Kong (4.1) have low scores. The index for the UK is 5.2. 

The report indicates that countries in the first stages of economic recovery are experiencing the greatest talent mismatch. The US, Portugal, Spain, and Ireland all recorded a maximum index score of 10 for this component, one of seven making up the overall index. 

The Hays Global Skills Index is a composite figure based on seven components. A score of 5.0 indicates a balanced picture for labour markets, a score close to 0 indicates less intense competition for vacancies, and a score close to 10, shows severe difficulty in finding skills. 

The seven components making up the Hays Global Skills Index are:

• education flexibility
• labour market participation
• labour market flexibility
• talent mismatch
• overall wage pressure
• wage pressure in high-skill industries
• wage pressure in high-skill occupations

The full Hays Global Skills Index is available online.