Amid all the press about layoffs and AI replacing jobs, it’s natural to question whether there really is a talent shortage. The short answer is yes, the shortage of talent is real. It is global. It is significant, and it will be long-lasting.

But it’s also important to understand the dynamics of the labor market and the reasons for the shortage, so you can respond effectively and ensure a runway for success with your business or organization.

Mixed Messages Abound

Press about layoffs has been seemingly everywhere lately. From the 12,000 UPS employees laid off globally, to the 500 employees let go at Snap—businesses say they’re right-sizing.

In addition, press about AI strikes fear in the hearts of workers who report anxiety about losing their jobs to robots, software and systems which could replace both highly-skilled and less-skilled responsibilities.

On the other hand, 55% of CEOs expect to increase hiring during the next year and only 7% of CEOs of small and medium-sized businesses expect to reduce their workforces, according to Vistage. In addition, 81% of recruitment professionals say it’s challenging to fill roles, according to a poll from Employ Inc.

And while job growth is slowing somewhat, economists predict that about 100,000 jobs will be added per month, resulting in a stable unemployment rate of 3.7%, which is just modestly above a 50-year low.