The Economic Analysis On High Skilled Talent Shortage

As the consequence of the Global Financial Crisis, a series of enterprises have gone bankrupt. In the mean time, some companies with strong human resource which is the core competitiveness for a business have survived and even achieved splendid successes. Currently, high-skilled talents shortage has become an impediment to rapid, healthy and sustaining economy development of China. The unbalance between supply and demand of technicians and advanced technicians in labor market as well as the disproportionality of high skilled talents in the internal enterprise seriously exert negative influence on the "Made in China" products and block up the way to world manufacture center of China. Simultaneously, the problems also weaken the domestic enterprises' competitiveness. Also, it may cause the national financial risk. Overall, it is urgent to solve the problem.This paper starts from the fact of the serious situation of the shortage of high-skilled talents, following with its diversified negative influences. Afterwards, the paper has been focused on the specific human capital investment. For one side, due to the high risk, individuals are not willing to invest time and energy as well as money in to specific human capital development. Employees may face the hold-up with incredible commitment. For another side, due to the lack of a correct investment decision model, employers prefer to share the public education and training profit rather than specific human capital investment.Finally, based on the economic analysis above, several proposals have been presented regarding the shortage of high-skilled talent, including making attractive remuneration and benefit system, developing human resource structure and modem management science, strengthening the investment on the introduction of overseas talent, etc.In the course of paper writing, I got the opportunity from the Ministry of Education of China to do an internship in GAAPS Actuarial which is a London-based actuarial human capital recruiting consultancy. I gained the exposure in the UK and Asia Pacific actuarial human resource market. As a result, actuarial human resource case has been introduced in to the paper as a practical analysis, which is a shining innovation.