“Labor markets around the world haven’t kept pace with rapid shifts in the global economy, and their inefficiencies have taken a heavy toll. Millions of people cannot find work, even as sectors from technology to healthcare struggle to fill open positions.”
A recent report by McKinsey Global Institute, A Labor Market that Works: Connecting Talent with Opportunity in the Digital Age, records MGI’s findings about productivity and global labour markets. As the above quote suggests, issues arise around productivity and inefficiency. Even those in work, often feel underutilized or overqualified for the role. Globally, hundreds of millions of people are dealing with the effects of underemployment and unemployment.
The report proposes that these dysfunctions in the labour market can be eased by online talent platforms, which work “by more effectively connecting individuals with work opportunities.”
As laid out in the report, 30-45% of the global working-aged population are unemployed, working part-time or inactive in the workforce. MGI believes that as online talent platforms grow, they will inject new momentum and transparency into job markets:
“Our supply-side analysis shows that online talent platforms could add $2.7 trillion, or 2.0 percent, to global GDP by 2025, while increasing employment by 72 million full-time-equivalent positions.”
One of the most influential aspects of online talent platforms is that they increase transparency, meaning that young people can make better educational choices based on what skills are needed in the workplace. Not only do these kind of platforms increase productivity in the workplace – as individuals are placed in the most suitable roles – they also reduce recruitment costs.
Gradintel is well placed to consider these findings in relation to the UK higher education sector. As an online talent platform for students and graduates, we come into close contact with the issues that young people face in finding employment. Our system allows for student profiles to be targeted based on matched attributes, allowing employers to find the best fit for their business. Employers can search by academic credentials (which come in the verified form of the HEAR); or by soft skills, personality traits, or assessed abilities in numerical, verbal and logical reasoning tests.
This approach certainly saves time in finding recruits, since our matching algorithm automatically filters those best suited to a role. Online talent matching reduces the inefficiency that besets the global labour market. By carefully selecting relevant characteristics, and working towards matching candidates to the best roles, online talent platforms work to reduce unemployment and underemployment.
Find out more about finding candidates through Gradintel here. If you are a student or graduate (who has not already been registered by your university), and you wish to be tagged for some exciting graduate opportunities – sign up for a free account here.