Upskilling not only benefit those who want to be competitive in the job market and be able to adapt to the changing work environment resulting from technological progress and globalisation.
In fact, when upskilling opportunities is being provided to every segment of the society, they enable every citizen to participate in their country’s socio-economic development.
Thus, upskilling can be a means of eradicating poverty and subsequently ensuring an inclusive economic growth or shared prosperity.
This call for wide-scale upskilling is the core message that the World Economic Forum (WEF), in collaboration with PwC, intend to present in its report Upskilling for Shared Prosperity that was released on 25 January 2021.
While gross domestic product (GDP) – the most broadly used economic measure – is used in the report, WEF cautions that GDP does not reflect the entire socio-economic situation of a country.
Thus, the report features research that is complemented with qualitative analysis which takes account of the importance of new economic perspective supported by the development of good quality and fulfilling jobs.
“At the heart of the report is a realisation that our economies are no longer delivering what people need and require systemic reform.
“And by giving all people opportunities to build the skills they will need to fully participate in the future workplace, we can start to create more inclusive and sustainable economies and societies where no one is left behind,” state Saadia Zahidi, Managing Director of WEF and Robert E. Moritz, Global Chairman of PwC in their preface of the report.
Here is a summary of the report’s key findings, that can be found in more detail at https://www.weforum.org/reports/upskilling-for-shared-prosperity:
Key Finding #1: Extensive investment in upskilling has the potential to boost global GDP by $6.5 trillion by 2030, according to the accelerated scenario that supposes skills gaps to be closed by 2028.
Meanwhile, based on the core scenario – which presumes that skills gaps are closed by 2030 – such investment could push global GDP upwards by $5.0 trillion.
These scenarios are modelled based on countries taking measures to reduce skills gaps in line with industry best practices from Organisation for Economic Co-operation and Development (OECD).
Key Finding #2: Regions and economies that are mostly like to achieve the biggest gains from investments in upskilling are those where skills gaps are wider, and those that can reach their greatest potential in enhancing productivity through skills augmentation aligned with new technology.
This also applies to less developed economies, in which the effects of these gains can be seen through additional percentage of GDP, and the impact of lives and livelihoods in these regions.
Key Finding #3: Upskilling makes it feasible to drive progress on reversing polarisation and reshaping the workforce amidst the Fourth Industrial Revolution.
Under the accelerated scenario mentioned in Key Finding #1, 38 percent of additional GDP that can be obtained through upskilling will be generated from business services and manufacturing sectors.
In countries with high levels of inequality, upskilling can enhance the quality of jobs created, as a result of increased scope in the transition from low-cost labour to technology-driven positions. In the process of being upskilled for these jobs, people’s wages and livelihoods can be improved.
Key Finding #4: Through upskilling, 5.3 million new jobs are expected to be created by 2030. It could also enable countries to enhance the overall quality of jobs as they drive their economies towards having human labour that are complemented and augmented – instead of being replaced – by new technology.
These jobs that will be increasing in demand will require the workforce to possess digital skills, as well as soft skills such as creativity, innovation and empathy.
Key Finding #5: The ongoing COVID-19 pandemic has hastened the urgency for a bold global upskilling agenda, as its impact has led to the digitalisation and automation of industries at an increasingly rapid pace.
Being able to overcome this challenge can lead countries to experience faster development and larger economic benefits, as suggested in the report’s accelerated scenario.
