European countries topped the IMD Global Talent Rankings for 2024.
Didier Marty | Moment | Getty Images
According to the IMD 2024 World Talent Rankings, Switzerland has been ranked as the most talent-competitive country in the world for the 11th consecutive year, demonstrating that it has a strong and stable talent pool despite a rapidly changing global working environment.
The ranking measures how well economies around the world are performing when it comes to retaining their talent pool. This year’s list was compiled based on survey responses from 67 countries around the world, combining robust data from the IMD World Competitiveness Center and external sources.
According to the report, the data is broken down into three segments: investing in and nurturing home-grown talent, attractiveness (the extent to which a country taps into the international talent pool) and readiness (the availability of skills and capabilities in the talent pool).
Here are the 10 most talent-competitive economies in the world:
- Switzerland
- Singapore
- Luxembourg
- Sweden
- Denmark
- Iceland
- Norway
- Netherlands
- Hong Kong
- Austria
European countries took eight of the top 10 spots in this year’s ranking. Two Asian economies also made the list, with Singapore and Hong Kong coming in second and ninth, respectively.
However, the United States did not make it into the top 10, dropping six places to 21st this year. In particular, the United States has fallen from second place in 2020 to 14th in 2024 in the attractiveness category due to the impact of the cost of living and the personal income tax collection rate.
The United States also fell to 32nd in readiness this year. The country was rated below average in language skills, or the availability of language skills to meet corporate needs, placing it 47th out of 67 countries worldwide.
Switzerland remains at the forefront in talent competitiveness, having consistently held the top spot since the ranking began in 2014. The country ranks highly in the investment and development as well as attractiveness factors.
This European country tops several criteria, including quality of life, healthcare infrastructure, university education, the existence of a legal minimum wage, and the ability to attract highly skilled foreign talent.
Singapore is also a standout winner on this year’s list: The city-state “rose from 18th place in 2014 to second place this year and may soon be challenging Switzerland’s dominance,” the report said.
Singapore’s steady rise can be attributed to its robust talent pool, which ranks first among all countries included in the ranking. The report said the country has the least discrimination and ranks first in workforce growth, availability of skilled labor and availability of financial skills.
While AI has the potential to bring unparalleled efficiency and productivity, it also poses the threat of widespread job losses, especially in sectors that rely on routine tasks and automation.
Jose Caballero
Senior Economist, IMD World Centre for Competitiveness
The impact of AI on global talent development
The 2024 WTR report, titled “Socio-economic impact of AI in the Workplace”, also focuses on the impact of artificial intelligence on the global talent landscape.
“The rapid adoption of artificial intelligence (AI) is transforming industries in unprecedented ways and reshaping the global economy, creating both opportunities and challenges for talent competitiveness,” José Caballero, senior economist at IMD’s Global Competitiveness Center, wrote in the report.
“While AI has the potential to bring unparalleled efficiency and productivity, it also poses the threat of widespread job losses, especially in sectors that rely on routine tasks and automation,” Caballero said.
Notably, this year’s report found that in Japan, Thailand, Singapore, the UK and Canada, “senior managers believe that the most visible aspect of AI in the workplace is the way it will replace humans. Additionally, we found that discrimination is on the rise in these economies,” IMD said in a blog post.
“The integration of AI into the workforce could create new forms of discrimination, such as biased algorithms, reinforce existing inequalities and have broader societal impacts on marginalized communities,” Caballero said in the report.
For example, the report found that in high-income countries, women’s jobs are more than twice as likely to be affected by automation (7.9%) than men’s (2.9%).
Ultimately, the report says, high-income countries are likely to experience more disruption and discrimination from AI in the short term than lower-income countries, but “are also expected to reap greater overall benefits.”
Want to master your money management this fall? Enroll in CNBC’s new online courseWe’ll teach you actionable strategies to master your budget, reduce your debt, and increase your assets. Get started today and feel more confident and successful. For back-to-school season, use code EARLYBIRD to receive a 30% off introductory discount extended through September 30, 2024.
plus, Sign up for the CNBC Make It newsletter Learn tips and tricks for success in work, money and life.
