But also from the supply side developments were, for a period at least, positive, partly because there was an increase in the working-age population. In recent years, however, it has become evident that many people have ended up outside the labour market, partly as a result of a rise in sick leave. As regards productivity growth, the trend in recent years has been more positive. At GDP level it has been approximately 2 per cent per year or slightly above. This differs from the situation in the 1970s and 1980s. It is likely that the changes in monetary and fiscal policy and increased transparency with stiffer competition have been important in this regard. So how should we feel about developments in the near future? When it comes to productivity, there is reason for optimism, even if the high figures seen in the 1990s partly reflect both rapid growth in the private sector compared to the public sector and robust growth in the ICT sector. Our economy is more open and has greater competition and downward price-pressure in many sectors. The cost pressures in the public sector also have a similar impact. The outlook is considerably gloomier for the labour supply. As I mentioned, developments are now on a downward trend. One cause of this is that economic policy in some respects has become less focused on raising labour force participation. In terms of both transfers and taxes, changes have been implemented that reduce the incentive to work.
So it is critical that we are able to devise a strategy that could continuously retain and develop talent. While the supply of talent is abundant, the supply of top talent is scarce. The so-called “Talent Paradox”, where we find ourselves with a large pool of talent in the market, but have difficulty in finding competent talent, particularly in the more specialised areas is a reality, requiring a solution. In the context of organisational learning and development, I wonder whether we have been effective in equipping our employees with the needed competencies or proficiencies in our learning interventions, where teaching approaches such as case studies, experiential learning and reflective practices are common pedagogies applied to strengthen our developmental curriculum. This I believe requires profound pondering. Most of the problems we face in the 21st century, would likely require unique and creative solutions, especially if we want to position ourselves in that elite position where possessing the competitive edge is an imperative. Matthew E May, the author of “In Pursuit of Elegance” wrote about “Design Thinking”, a concept that requires an approach to solving problems far beyond the traditional way of problem solving. Great design is a result of a clear and thorough understanding of the user, competing resolution of competing tensions, multidisciplinary collaboration, rapid experimentation via prototypes with continuous modification and enhancement of ideas and solutions. I thought it is quite apt to extract the idea from the book to describe the current and future challenges face by the financial services industry.