Canada as a hub of technology dreamstime xl 66529240 Pivotal HR Solutions Blog

Which Countries Have the Most Severe Skilled Labour Shortages — And Why They Should Consider Using EOR or PEO to Tap Into Canada’s Skilled Workers

In a rapidly changing global economy, certain countries grapple with significant skill shortages. As the very core of business operations hinges on a skilled workforce, these shortages have repercussions on economic growth, productivity, and competitiveness.

We explore which countries are most affected by skilled labor shortages, delve into the reasons, and highlight an innovative solution: tapping into Canada’s skilled labor using an Employer of Record (EOR) or Professional Employer Organization (PEO) like Pivotal.

Countries with the Most Severe Skilled Labour Shortages

In the intricate tapestry of the global economy, certain patterns emerge that tell a profound story about talent and opportunity. While some countries thrive with an abundance of skilled workers, others grapple with a severe scarcity. A comprehensive study by Forbes[1] sheds light on this disparity, revealing which nations are most acutely feeling the pinch of skill shortages:

  • Japan: 81%
  • India: 64%
  • Brazil: 63%
  • Turkey: 63%
  • Mexico: 44%
  • Greece: 42%
  • Australia: 41%
  • Germany: 40%
  • United States: 40%
  • (The list continues down to Spain at 3%)


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These figures represent the percentage of employers in these countries who have reported difficulty in finding employees with the required skill sets. It’s important to note that these statistics are not just numbers on a page. They reflect real-world challenges faced by businesses and employers in these nations.

Root Causes of Skill Shortages

In today’s fast-paced, interconnected world, the pressing demand for specific skill sets and professions continues to grow exponentially. As businesses evolve and industries transform, a discernible gap appears between available roles and the talent pool qualified to fill them[2].

Understanding the origins of these skill shortages is crucial to formulating effective strategies that address them. The reasons behind the current landscape are multifaceted, ranging from technological disruptions to shifting demographics. Let’s delve deeper into these foundational causes to grasp the bigger picture.

Technological Evolution

With the Fourth Industrial Revolution in full swing, the world has witnessed a surge in automation, AI, and other technological advancements. This transformation has created a plethora of new roles, especially in fields like data science, AI programming, and cyber security. While these roles offer great opportunities, training programs and academic courses sometimes lag behind in producing professionals with the required expertise quickly enough. This mismatch in demand and supply is a significant factor contributing to global skill shortages.

Demographic Changes

Countries like Japan are experiencing a demographic shift towards an older population. As per Japan Times News, the nation’s aging populace results in labor shortages across multiple sectors. The hospitality industry, for example, demands a physically agile workforce, something increasingly hard to find in a rapidly aging society. Furthermore, sectors like elderly care need personnel not only trained in health care but also proficient in soft skills, creating a double challenge. A similar demographic shift is observed in European countries, making it a global concern.

Education Gaps

The academic world, traditionally designed to offer broad-based education, sometimes finds it challenging to catch up with the specialized skills that today’s industries demand. While universities and colleges are making strides, the speed of technological advancement sometimes outpaces curriculum development. This discrepancy creates a gap where graduates, despite being educated, may not possess the industry-specific skills employers desperately seek.

Economic Growth

Rapidly growing economies, especially those transitioning from agrarian to industrial or technological hubs, often confront a unique dilemma. Their educational systems, tailored to cater to past economic structures, might not be equipped to address the needs of the new industries, resulting in a pronounced skills gap.

The Canadian Advantage

As global corporations navigate the labyrinthine challenges of international recruitment, they’re increasingly turning their gaze to untapped talent reservoirs. Among the most promising of these reservoirs is Canada, a nation known for its world-class educational institutions, diverse workforce, and a favorable economic climate.


Canada as a hub of technology dreamstime xl 66529240 Pivotal HR Solutions Blog
Canada is known around the world for high levels of skilled labour, technical expertise, superior education and other factors which make it one of the hotspots for highly skilled labour worldwide.


But what exactly makes Canada stand out in this fierce global competition for skilled labor? Beyond its majestic landscapes and rich cultural heritage, Canada offers tangible, strategic benefits for businesses looking to bridge their talent gap. Let’s unpack a few of the advantages that Canada offers:

Cost Efficiency

The Canadian dollar’s relative value provides a significant cost advantage for foreign employers. Beyond the favorable exchange rates, the cost of living in various Canadian cities is often lower than in major urban centers worldwide. This means that high-quality work can often be sourced at a fraction of the cost, yielding both economic efficiency and quality output.

Highly Skilled Labor

Canada is home to some of the world’s top universities and research institutions. Institutions like the University of Toronto, University of British Columbia, and McGill are churning out graduates well-versed in modern technologies and industries. Moreover, Canada’s emphasis on multiculturalism and diversity means businesses can access a rich tapestry of skills and perspectives, making it a fertile ground for innovation and growth.

Simplified Hiring Process

Navigating the employment landscape of a foreign country can be a daunting task. This is where EORs and PEOs step in. By providing comprehensive HR solutions in a foreign jurisdiction, companies like Pivotal HR make hiring in Canada hassle-free, even for companies unfamiliar with Canadian employment laws and practices.

Why Choose Pivotal?

In the realm of global talent acquisition, the roles of EOR (Employer of Record) and PEO (Professional Employer Organization) have become increasingly important. At the heart of this evolving landscape stands Pivotal, an organization synonymous with excellence in EOR, PEO, and comprehensive HR Management solutions[3]. But what is it about Pivotal that makes it the go-to choice for businesses worldwide?

  • Comprehensive Services: Pivotal isn’t just another HR agency. They provide an end-to-end solution that caters to all aspects of human resource management. Whether it’s payroll, recruitment, or compliance with local labor laws, Pivotal offers a one-stop solution, sparing companies the hassle of juggling multiple service providers.
  • Decades of Expertise: Experience is the best teacher, especially in the nuanced world of HR. Pivotal, having been at the forefront of HR solutions for decades, brings a wealth of expertise and a deep understanding of the industry’s intricacies. This depth of experience ensures that clients can avoid common pitfalls and benefit from proven strategies.
  • Seamless Integration: One of the primary concerns businesses have when venturing into a new market is the integration of new hires into the company’s culture and ethos. Pivotal goes beyond mere recruitment, ensuring that new employees align with a company’s vision, values, and operational norms. This holistic approach ensures a smooth transition and integration for both the employer and the employee.

Key Takeaways

The challenges of skill shortages resonate across nations, driven by socio-economic, educational, and technological dynamics. Countries such as Japan, India, and Brazil top the list of those facing significant talent gaps. But it’s not all bad news; potential solutions lie in untapped reservoirs of talent, like Canada’s skilled workforce.

By harnessing opportunities, leveraging resources like Pivotal Integrated HR Solutions in the realms of EOR, PEO, and HR Management, and fostering international collaborations, businesses can bridge these skill gaps and fortify their operations for a prosperous future.


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