Allianz Risk Barometer 2023 -
Rank 8: Shortage of skilled workforce

Another consequence of the Covid-19 pandemic and rising wage inflation is a shortage of skilled workforce. Many countries have experienced a reduction in the available workforce at a time of high demand for labor, as some workers took early retirement. And while the cost-of-living crisis may see some of these people return, at the end of 2022 it was reported that there were almost two unfilled positions in the US for every job seeker [1].

At the same time, a study by consultant McKinsey reported that 40% of workers globally said they might leave their jobs in the near future [2]. Clearly attracting and retaining skilled workers has rarely been more challenging – a Manpower Group survey noted that 75% of companies globally had reported talent shortages and difficulty hiring over the past year, a 16-year high [3]. Allianz Risk Barometer respondents rank talent shortage as a top five risk concern in the aviation and aerospace, engineering and construction and professional services sectors.

Company working conditions also rank highly on the environmental, social, and governance (ESG) risk list, according to the Allianz Risk Barometer. Issues such as staff engagement rank as the second top ESG risk trend of most concern to companies (40%) behind only cyber security resilience. There is little doubt that the pandemic shifted the social contract between employers and their people. Companies are now expected to address a broad set of labor and employment issues, ranging from health and safety to wellbeing and diversity, while being accountable for driving societal impact, environmental stability and inclusive growth in order to develop their talent pools.