The third annual Hays Global Skills Index, this year named The Perfect Talent Storm, is based on employment data from 31 countries.
Each country is given a score out of 10, based on factors including education levels, labour market flexibility and wage pressures. Higher scores indicate a "tighter" job market in which supply and demand are best aligned.
The UK is rated at 5.1, down from 5.2 in 2013. In Europe only three other countries (Ireland, Spain and Portugal) score lower.
At 6.6, Sweden is ranked as the most balanced job market. Its score is up from 6.2 is 2013. Last year's top ranked nation Japan has seen its score fall from 6.6 to 6.
A variety of social, economic and business factors contributed to the UK's relatively low score. Each was ranked out of 10 based on its relevance. Talent mismatch is by far the biggest contributor, scoring 9.6 out of 10. This is followed by wage pressures in high-skilled industries at 7.7.
Hays’ chief executive Alistair Cox called Britain's "chronic" skills shortage "one of the biggest threats to our nation’s future prospects".
"If this talent mismatch continues to rise at the current rate as the economy improves, we will reach crisis point in a matter of months," he added. “There is no miracle cure for the issue but in the lead-up to a general election we have to start by acknowledging the problems."
"Shorter term, the only viable route to find sufficient numbers of skilled workers to fill the jobs we are now creating is to look overseas. However, we need to revisit our skilled immigration policies to make this happen."
