Countries around the world are looking to become more resilient, self-reliant, and productive. A fundamental challenge is having the skills capability to meet and keep pace with the changing demands of employers and society.
By 2027, up to half of all roles globally will be affected by a skills gap. This is driven by the advancement of artificial intelligence (AI), an ageing population, and an increasing desire for greater work flexibility and mobility. Urgent action is needed to address current gaps and anticipate future ones, especially if countries want to sustain meaningful economic growth and ensure long-term prosperity and wellbeing.
How countries across the globe are navigating the workforce skills gap
Countries are already responding to the challenge of addressing workforce skills shortages. Inflection points are observed across several geographies:
Australia: Domestically focusing on upskilling and reskilling current workforce, supporting vocational pathways and leveraging skilled migration programs with the establishment of Jobs and Skills Australia, which plays a key role in advising governments and other partners on key skill needs.
Southeast Asia: Although Singapore faces a shrinking workforce due to demographic pressures, the government has established a range of funding schemes and initiatives under its SkillsFuture framework designed to encourage lifelong learning nationwide. In Malaysia, the recent focus has been on encouraging the private sector to collaborate with government institutions on talent development, training workers in high-demand skills such as cybersecurity and data science.
Middle East: Governments are playing a significant role in transforming education systems through public-private partnerships (PPPs), educational reforms, and allocation of financial resources to support change in public education providers. Gulf Cooperation Council (GCC) countries are driving talent growth by creating incubators, accelerators and fintech hubs.
United Kingdom: The recent launch of Skills England by the UK Government will bring together central and local government to meet the nation’s skill needs – in particular across construction and healthcare – for the next decade. This body is designed to provide strategic oversight of the skills system that is aligned with the UK Government’s Industrial Strategy.
US: The US has implemented initiatives at all levels of government and with the private sector, notably CHIPS and Science Act in 2022 which has a substantial funding component for grants and scholarships to train workers in chip manufacturing and related skills. PPPs between large tech companies such as Amazon, Google and Microsoft, and community colleges to upskill and reskill employees in technical skills are also being developed.
Collaborative ecosystems are vital to solving the skills challenge
Despite numerous efforts to close the skills gap, the global educational value chain has struggled to adapt, with only half of workers having access to adequate training opportunities.
To fix this slow and misaligned sector, we must view the entire educational value chain as an ecosystem or group of key players working together. By understanding the role of each player — government, educational institutions, employers, and startups or Edtech organizations — we can create a more coordinated approach that keeps pace with shifting skill demands and economic and societal changes. Each one can contribute by taking specific, practical actions:
Government — to drive collaboration and skills policy alignment
By establishing forums for dialogue and sharing transparent data regarding skill demands, governments can encourage collaboration among stakeholders and help articulate clear national skill priorities. Governments should incentivize partnerships between private companies and educational institutions through targeted grants and support and empower universities to diversify their offerings through smaller, focused programs that would enhance their adaptability.
Educational institutions — to expand access to flexible learning options
Educational institutions need to adapt their offerings to include options such as micro-credentials aimed at ongoing professional development. By partnering closely with industry, they can co-create content that directly addresses specific skill gaps. Enhancing the exchange of expertise between academia and industry will also remove barriers to staff mobility, which can enrich educational experiences and keep curricula up to date with market demands.
Industry — to invest in continuous upskilling for a future-ready workforce
Employers have the responsibility to invest in continuous training in collaboration with educational institutions. Establishing work-integrated learning programs, such as apprenticeships and traineeships, allows for the practical application of theoretical knowledge, better preparing workers for the ever-evolving job market. Such initiatives not only contribute to individual employee growth but also enhance the overall talent ecosystem.
Startups or Edtech — to power organizations to develop collaborative learning platforms
Startups or Edtech companies can leverage technology to create innovative, adaptable, and scalable learning solutions that can better connect learners, educational institutions, and industry experts. These collaborative platforms can facilitate the integration of micro-learning modules and make education more accessible and relevant to today’s workforce.
Rethinking skills for the future of global sovereign economies
The success of modern economies depends on continuously developing skills and mindsets to innovate, adapt, and grow. As the drive for sovereign capability intensifies, nimble, interconnected skills ecosystems become critical. It’s no longer enough to fix isolated skill gaps; the educational ecosystem must be redesigned to anticipate and respond swiftly to future demands.
Governments, educators, industry leaders, and innovators must break down silos, build strong partnerships, and adopt an agile approach to skill development. Together, they can create a workforce ready to face future challenges and seize emerging opportunities.
