Alarm over global skills crisis with half of workforce needing upskilling - report

A new survey highlights a growing global skills crisis, with nearly half of the workforce in various countries needing upskilling or reskilling to align with current job trends.

The World Economic Forum warns that this issue requires urgent attention, emphasising that without significant government intervention, up to 90 per cent of the workforce could need new skills by 2030.

Failure to address this gap could result in a staggering global GDP loss of up to $15 trillion by the same year.

In Kenya, the Federation of Kenya Employers' recent survey underscores the severity of this issue.

The survey reveals that 20 per cent of enterprises face challenges with hard-to-fill vacancies.

Notably, 50.51 per cent of respondents have had to hire candidates with qualifications lower than desired due to the skills shortage.

It further identifies critical areas of concern: vacancies requiring TVET skills are hardest to fill in fields like architecture, building, and construction (36 per cent); engineering (30 per cent); and transportation, distribution, and logistics (48 per cent).

Conversely, positions demanding first-level university education are most prevalent in information technology (77 per cent) and finance and business management (71 per cent).

An empty boardroom. (Photo: Handout)

Vacancies requiring a master's degree are found primarily in legal sectors (20 per cent), while those needing a doctorate are in science and mathematics (8 per cent).

The report further reveals that skills deficits are contributing to significant business challenges, including inhibited expansion (25 per cent), revenue loss (24 per cent), and diminished customer or market share (21 per cent).

The World Economic Forum stresses that governments must take decisive action to support efforts to close these skills gaps.

It calls for the establishment of a comprehensive digital skills platform that connects job seekers, employers, training providers, and financiers.

This platform would facilitate job searches, skilling programmes, and funding opportunities, helping to alleviate the information asymmetry and coordination challenges currently faced.

Additionally, the Forum advocates for lifelong learning incentives to foster a mindset shift among individuals, employers, and educational institutions.

This approach is essential for ensuring that the workforce remains adaptable and skilled in the face of evolving job market demands.