When we think of skills the human population needs to survive into the future, it’s somewhat natural to assume we have tech jobs covered. After all, the tech industry seems to dominate everywhere we look and everything we do.
But the truth is that under current conditions, by 2030 there will be a global shortage of more than 85 million tech workers. This lack of high-skilled tech talent is projected to equal at least $8 billion in lost revenue for private entities, nonprofits, and governments. With specialties like cybersecurity included in the shortage, the actual losses could add up to much more, both financially and culturally. This will especially be true if the tech skills gap continues to widen and get worse with time.
Pause. Don’t panic. That is a big “if.”
The global tech talent shortage doesn’t have to be a negative. In fact, for those who are ready to choose and grow a fulfilling and lucrative career, the tech skills gap represents nothing but potential. Let’s explore what this talent shortage actually entails, and how any individual can get access to tech job training that will narrow the divide and empower us to solve the problems of the future.
Is There a Shortage of Tech Talent?
While there is a gap in the talent market for tech, that isn’t the same thing as a shortage of applicants. In fact, there were an average of 43 applicants for every available tech role in 2018, compared to an average of 21 applicants for non-tech roles.
But this greater number of potential employees doesn’t mean that hiring is easier. It takes 50% longer on average to fill a tech role than other roles. Ultimately, only six out of every ten jobs will actually be filled due to the lack of skills in the market.
Does it seem like these numbers don’t add up? That’s because there is a difference between the idea of tech talent and tech skills. Roles like software developer, cyber threat analyst, DevOps engineer, and data scientist are some of the most-common tech job postings, but the skilled employees to fill these roles just don’t exist in the needed numbers.
So, while many of the applicants for these positions may be talented tech professionals in their own right, that doesn’t mean they possess all the skills needed to land the job. 60% of companies say it is common for applicants to lack the necessary skills for the position in question, while half or more admit that their current workforce doesn’t have the tech proficiencies they need. That means there’s a skills gap between talent needs and capabilities within their own organization.
What is the Digital Skills Gap?
So what are the digital skills missing from today’s workforce? An overwhelming majority of organizations cited the following needs in a study by the Career Advisory Board:
- Information Security—needed by 80% of organizations
- Cloud Computing—needed by 76% of organizations
- Web Architecture Development— needed by 73% of organizations
- Internet of Things—needed by 72% of organizations
- Artificial Intelligence—needed by 63% of organizations
These necessary hard tech skills reveal the high-skilled proficiencies that must be developed in the workforce for organizations to meet the needs, demands, and expectations of the future.
In some aspects of tech, like cybersecurity, there is a talent shortage—literally not enough people entering the workforce. In other areas of tech, like software development and web development, there is a skills gap—many people are entering the workforce, but they sometimes lack the necessary and most relevant skills to get the job done.
Technology Skills Gap Statistics 2020
For businesses and nations across the world, the costs of the tech talent shortage and tech skills gap are major.
Tech Skills Gap Effect on Business
- 40% of businesses are unable to take on additional work due to a lack of tech skills.
- The US could lose out on $162 billion of revenue annually unless high-tech skills are developed in the workforce.
- Brazil, Indonesia, Japan, and China are other economies poised to be hard-hit by the technology skills and talent gaps.
For individuals working in these economies, the skills and talent gaps also reflect unmet opportunity. Many citizens suffer long work hours in low-wage occupations when a higher-paying, more secure, and more fulfilling career path could be achieved through gaining the right tech skills. .
Tech Skills Gap Potential for Workers
At Eleven Fifty Academy, we make it our goal to address both needs at once through tech bootcamps.
Be Part of the Future of Coding Jobs
To meet and fill both the tech talent shortage and tech skills gap, upskilling and reskilling are essential. What is the difference between upskilling and reskilling? Upskilling means learning a completely new job, like learning to code or getting trained in cybersecurity. Reskilling means an existing technical professional learns a new coding language, new security strategies, or emerging technologies like AI and machine learning.
Whether you are seeking an opportunity to upskill or reskill, Eleven Fifty Academy can serve you. Our immersive tech bootcamps in web development, software development, UX/UI Design, and cybersecurity help individuals develop the skills they need to land a tech job in just a few months. Whether you attend a part-time or full-time program, you’ll develop the most relevant hard and soft skills employers are looking for right now. We invite you to attend a free introductory tech course and start exploring which part of the tech industry is right for you.