Bain warns of coming global labour crash
I’ve been reading a recently released report from management consultancy Bain & Company that explores the future of labour (or, to put it in a less politicised term, employment). The report, Labor 2030: The Collision of Demographics, Automation and Inequality, looks at how those three trends are going to impact the world of paid employment. I wanted to focus on the first issue – demographics. According to Bain, we’re staring down the barrel of a global labour crunch. Here’s what Bain says. “The abundance of labour that has fuelled economic growth since the 1970s – spurred by women entering the workforce, the opening of China and India, and the baby boomer generation – is winding down. Most of the world’s workforce is ageing rapidly. As the total size of the labour force stagnates or declines, the momentum for economic growth should slow. If it does, governments will face major challenges, including surging healthcare costs, old-age pensions and high debt levels.” That’s gloomy stuff – but there is a glimmer of hope. As the Financial Times recently pointed out, the population of Africa is booming while the rest of the world busts. That could be very good news for young African workers. In Premium today, you can read Alec Hogg’s recent speech of SA’s future and the stocks that may benefit from the changing environment. You can read the explosive report on Resilient that has analysts buzzing and learn how the world sees the ongoing clash between Zuma and Ramaphosa. And in today’s worldview, you can learn about an unexpected threat to America’s booming tech sector: tax reform. Finally, I want to ask you a favour. I’m trying to understand better what people most enjoy and value about Biznews Premium. I would love to hear from you what you like most about Biznews Premium, so drop me a line – [email protected].