Skills development

Skills development is at the center of changes that occur in education And labor markets In the midst of the mega world trendssuch as automation, action against climate change, digitization of products and services and reduced workforce, which are Change the nature of the work and skills requests. Consequently, skills development systems and labor must adapt proactively to the rapid transformations posed by automation, climate action, digitization and evolving labor markets.

These evolutionary trends will redefine the paradigms of the education and development of labor systems on a global scale. In the dynamic landscape of the modern world work market for work, the workforce and labor development systems must become more personalized, accessible (allowing distance learning and hybrid) and continuous throughout workers' careers – placement “Skills development »At the heart of these global transitions. In addition, skills systems on a global scale (and in particular in LMI) will have to adapt to the fact that many workers will engage in independent / informal jobs or independent work which must become more profitable, productive and conducive to economic growth.

To succeed in the 21st century labor market, it takes a complete set of skills made up of:

1. Fundamental and superior skillsWho are cognitive skills that include the ability to understand complex ideas, to adapt effectively to the environment, to learn from experience and reason. Literacy and fundamental numeracy as well as problem solving, communication and information analysis are cognitive skills.
2. Socio-emotional skillswho describe the ability to manage relationships, emotions and attitudes. These skills include the possibility of navigating effectively in interpersonal and social situations, as well as leadership, teamwork, self -control and grain.
3. Specialized skillswho refer to the knowledge, expertise and acquired interactions necessary to perform a specific task, including control of materials, tools or technologies required. Specialized technical and cognitive skills as well as entrepreneurship skills are included in this category.
4. Digital skillsWho are transversal and rely on all skills above, describe the ability to access, manage, understand, integrate, communicate, assess and create information in complete safety and appropriately.

Skills are a cornerstone for green-numerical transition. The development of skills can contribute to structural transformation and economic growth by improving employability and labor productivity and helping countries become more competitive.

Again, Skills gaps are a main constraintParticularly in LMIs, to achieve rich economic growth jobs for digital and green transition. In this regard, most countries continue to combat the promise of skills development:

• There are huge gaps in basic literacy and numeral work populations, because 750 million people aged 15 and over (or 18% of the world's population) are unable to read and write, estimates being almost twice as important if literacy is measured by direct assessments. Large -scale international assessments of adult skills generally highlight skills discrepancies as well as the significant variation in education yields in all areas of study, institutions and population groups.
• Megatons such as automation, action against climate change, digitization of products and services and an aging and aging workforce will transform more than 1.1 billion jobs in the next decade.
• About 450 million young people (7 out of 10) are economically disengaged, due to the lack of adequate skills to succeed in the labor market.
• More than 2.1 billion adults need corrective training for basic literacy, numeracy and socio-emotional skills.
• About 23% of companies cite labor skills as a major constraint to their operations. In some African and Latin American countries, this share increases to 40 to 60%.
• Most African countries and most South Asian countries do not have data on the skills of the workforce.
• The global economy could earn around 6.5 billions of US dollars over the next seven years by strengthening the gaps in workers' skills, representing 5 to 6% of their GDP. However, most countries invest less than 0.5% of the global gross domestic product in adult lifetime learning.

In addition, the COVVI-19 pandemic introduced the vision before the crisis of a fair, relevant and quality development in a clearer relief, adding an unforeseen emergency to the calls for reform and the highlighting of enormous inaction costs. Following the pandemic, 220 million post -secondary students (east.) Abandoned the training possibilities of the school or lost.

The main problems that countries must address for skills development are:

• Access and completion. Around the world, investments in education and skills development – preschool through post -secondary education in vocational training – have high yields. The salary penalty for low literacy is nine percentage points in Colombia, Georgia and Ukraine, and 19 percentage points in Ghana. And the opposite is also true: in Brazil, graduates of professional programs earn wages around 10% higher than those who have general secondary education. However, the provision of fair access is a challenge in many low -income and intermediate income countries.
• Adaptability: The rapid pace of technological progress and the evolution of labor markets can make technical and specialized skills quickly exceeded. On the contrary, transversal skills, such as critical thinking, problem solving and adaptability, will become more transferable and resilient to changes in the labor market. The evidence shows that post -secondary graduates who have adequate technical skills specific to occupation but lack solid fundamental and transversal skills, are often faced with challenges to adapt to changes related to work.
• Quality. Many young people attend schools without acquiring basic literacy skills, letting them unable to compete in the labor market. More than 80% of the entire working age population in Ghana and more than 60% in Kenya cannot deduct simple information from relatively easy texts. For those who access technical and vocational training at secondary and post -secondary levels, yields may vary considerably depending on the specialization and the institution. In particular, technical and vocational training systems (TVEP) in many countries are faced with challenges related to quality insurance, resulting in the perception that the professional track being a second best option compared to general or general tertiary education.
• Relevance. Technical and professional education and training – which can last from six months to three years – can give young people, especially women, the skills necessary to compete for better jobs. However, it is necessary to do more in terms of impartial of local employers to ensure that the study program and the delivery of these programs meet the needs of the labor market.
• Efficiency. The challenges related to governance, financing and quality insurance also have an impact on the effectiveness of skills development programs. The resulting unnecessarily high costs can limit opportunities for young people and disadvantaged adults to access these programs. The good news is that the evidence of what works and what is not in skills development, and for those who develop. In the World Bank group (WBG), we support governments around the world in data collection and design, implementation and learning reforms and programs to meet the most fundamental challenges of skills development.

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Last update: February 20, 2025