Navigating a talent shortage brought on by sovereignty and geopolitical tensions with technology and education

The labor market is in a strange situation right now – on one side of the coin, companies are being forced to cut costs by making parts of their workforce redundant.

Thankfully, this trend has slowed since the peak in 2023 – but on the other hand, companies are still struggling to hire workers with the right skills to move forward.

Continued geopolitical tensions and emerging sovereignty claims, exemplified by the number cloud hosting providers and cloud computing services which now offers more localized options, has only exacerbated the talent shortage in all industries, from engineering to manufacturing.

Sovereignty and lack of talent

The global talent shortage has been exacerbated by a growing trend towards national sovereignty in two very different ways. On the one hand, companies are looking to locate workers within specific boundaries to comply with evolving regulations, but on the other, they want to migrate technology closer to home as well, resulting in increased demand for highly skilled technology workers across the supply chain.

While these measures aim to reduce reliance on foreign supply chains, they have also highlighted a critical issue – the US alone faces a shortage of around one million experts in various high-tech fields, with Europe likely to be in a similar position.

Geopolitical tensions add to the problem

US-China tensions have further complicated the global talent landscape. Deteriorating relations between two of the world’s largest economies have led to restrictions and outright restrictions, not only on high-end hardware, but other parts of the supply chain, including talent.

The knock-on effect of this is that countries around the world, allied with the US, China or other interests, have increasingly reduced dependence on other nations by moving processes closer to home.

Consequently, workers who previously benefited from overseas recruitment opportunities now have fewer opportunities, as well as evolving skill requirements from employers.

Also, those companies that can hire overseas are now turning to local talent, which may not be as appropriate. Talent acquisition strategies are being considered now, but change rarely happens overnight and the struggle may continue.

In addition, the rapid aging of the global workforce, especially in developed countries, has created an urgent need for skilled labor to replace retirees. But as key roles are no longer filled by younger workers, healthcare, logistics, manufacturing and other sectors must turn to technology to close the gaps.

The role of AI in bridging the divide

Step into AI. Artificial intelligence and automation, while young, are already showing promising signs of improving worker productivity and business efficiency, as well as filling roles that may not be as attractive to humans.

While the emerging technology offers a partial solution, experts warn that it is little more than that, stressing the need for companies and governments to develop human capital with education and training programs designed to help them thrive in an increasingly automated world.

Armenia’s tech companies and government officials gathered at DigiTec to showcase what they have to offer not only to the country but to the world, eager to showcase the country’s potential and restore the reputation as a tech hub it had during Soviet rule.

As leaders, officials and media gathered at the World Congress on Innovation and Technology (WCIT) in the nation’s capital, Yerevan, the DigiTec exhibition hall was filled with startups and more established companies eager to showcase their contributions to the world of technology.

Among the exhibitors were representatives from the Armath initiative, designed to interactively educate young teenagers about STEM and their potential in the sector – an obvious success given its international reach and the fact that many of the exhibitors showcasing their startups were ex-Armath- students.

Summary

With the global population at an all-time high, the world is in the depths of one of the most severe talent shortages ever, but the complex nature of the various factors contributing to this means that the struggle could continue for years or even decades.

As countries prioritize self-sufficiency, especially in critical industries where unauthorized access can be catastrophic for economies and populations, demand for skilled labor continues to outstrip supply.

Although tech companies are stepping in with infinite AI toolswarns experts that artificial intelligence is nothing more than a collaborator, at least allaying initial fears that the technology could replace human workers.

Those looking to future-proof their roles should consider ramping up their upskilling efforts and becoming more adaptable to emerging technologies so they can close gaps as effectively as possible.

Carnevalestoricocivitonico

Navigating a talent shortage brought on by sovereignty and geopolitical tensions with technology and education

Kaneb

Kaneb

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