The worlds most valuable commodity is getting harder to find

Todays Economist publishes a special report on talent. In modern business, talent has become a synonym for brainpower and the ability to think creatively, both of huge importance in the modern economy. As The Economistís report shows, there is a huge concern in the business world that there is not enough talent to go around, that companies are battling for the worlds best employees and that once they have found them, they fight like hell to keep them.

The Economist points to evidence that the talent shortage is likely to get worse. Nobody really disputes the idea that the demand for talent-intensive skills is rising - in America the proportion of workers doing jobs that call for complex skills has grown three times as fast as employment in general. As other economies move in the same direction, the global demand is rising quickly. As for supply, in much of the developed world the working population is predicted to fall. Even in still growing America, the imminent retirement of the baby-boomers means that companies will lose large numbers of experienced workers in a short space of time.

To add to these woes, companies have seen a collapse of loyalty amongst their employees and most Western countries are not producing enough scientists, engineers or workers skilled to work in a modern economy. Again, in India and China they are suffering from acute skills shortages at the more sophisticated end of their economies.

The Economist points to the different challenges this shortage will pose for companies, governments and individuals:

For companies the main task is simply to end up with more talented people than their competitors. Human-resource managers, once second tier figures, now often rank among the highest paid people at American firms; they will have to justify that status.

Governments will need to act now. They need to remove barriers to help the flow of highly skilled workers and concentrate on education so that schools and universities produce more talent for the future.

Individuals should also be aware that the hunt for talent is bound to create even greater inequality. A global meritocracy is in all our interests, says The Economist. Be prepared to fight for it.