A new report by professional recruiting group Hays is proposing a long-term, three-point action plan for policymakers to combat the mismatch of skills availability and demand.

Released today, the 'Hays Global Skills Index 2012' report’s findings reveal that the world is facing an economic paradox in which many countries are witnessing high and rising unemployment – yet still suffering from chronic skill shortages in crucial professions.

This is resulting from labour market inflexibility, global competition for talent driving up salaries, and poor or inadequate education and training.

The report recommends:

• governments should focus on the skills their economies lack and take appropriate measures to attract the relevant people through targeted immigration

• employers should be offered fiscal incentives to increase their provision of relevant training

• governments should work with employers and educational authorities to implement a series of measures and incentives to persuade young people to acquire the skills that are most needed on both a country and international level.

The report was produced in collaboration with Oxford Economics and examines market dynamics and availability of professional skills in 27 key economies around the world.