Why investing in management development in a downturn is the difference between success and failure
A global recession in the year ahead is looking more likely. With a real squeeze on living standards, due to inflation and the prospect of weaker consumer spending, economists suggest the chances of recession are currently between 35% and 50% . Many economists also highlight that there is a real risk of stagflation – the toxic combination of high inflation, high unemployment, and stagnating demand which creates low growth. This is something that has not been talked about for over 40 years since the 1970s and the prospect of which the International Monetary Fund describes as “gloomy”.
Why is it important?
Things are also different now from the economics of the 1970s. We aren’t currently suffering from high unemployment – it is at record lows and wages are rising. One of the biggest problems for businesses right now is hiring staff.
Some 24% of business leaders cite talent acquisition as the main issue holding their organization back, according to research by HubSpot and Boom. In the UK, recruitment problems are at ‘record highs’ as 76% of companies struggle to hire new staff. In the US the nuances of labor shortages across different industries are clear.
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