The macroeconomic impact of skills shortage: governments must act
By boosting employee training programmes, these companies contribute to levelling up their workforce.
They generate productivity gains, foster innovation, boost macroeconomic growth potential and ultimately the job demand, offering a solution to high unemployment. This is why governments need to look at the tax incentives in place.
The European Commission’s Pact for Skills programme in 2020 marked a step in the right direction, and has already enabled 2mn individuals to enhance their skills.
States must go further to encourage companies to train their employees, just as tax credits help drive research programmes.
Budgetary constraints are no obstacle: the OECD has already proved that spending on education generates double-digit returns on investment.
In a world in which the war for talent is becoming more and more entrenched, the ability to train one’s workforce is becoming a critical competitive issue.
Companies are becoming increasingly aware of this, and governments must now follow suit.
Aymeric Gastaldi is a fund manager – international equities at Edmond de Rothschild Asset Management
