THE rise of automation and digitisation has transformed the world of work. It did not only increased productivity but also created major societal problem – the stark mismatch of people with the right skills for available jobs. In addition, the COVID-19 pandemic has accelerated and exacerbated these trends.
As a result, the need to upskill and reskill people so they can participate in the economy is more critical than ever before, to create more inclusive and sustainable economies as well as societies where no one is left behind.
In a new report, Upskilling for Shared Prosperity, launched during the Davos Agenda 2021, PricewaterhouseCoopers (PwC) and the World Economic Forum made a clear case for why leaders from all sectors should prioritize upskilling now.
The report also calls on governments to adopt an agile approach to driving national upskilling initiatives, working with businesses, non-profits, and the education sector. This includes providing incentives to create jobs in the green economy and supporting technology innovation.
“Crisis events, like the pandemic, can and should shape global economic thinking. They represent an opportunity to reflect, reimagine, and reset priorities,” said PwC’s global chairman Bob Moritz.
The report estimates that if countries upskill their citizens in line with the Organisation for Economic Co-operation and Development (OECD) industry best practices, this would lead to additional global gross domestic product (GDP) growth of US$6.5 tril and the creation of 5.3 million net new jobs by 2030.
According to the report, China (US$1.99 tril) and the US (US$902 bil), followed by India (US$571 bil), Spain (U$132 bil) and the UK (US$119 bil), have the most to gain economically in absolute terms from closing their skills gaps.
As for some of the more developed economies, they are expected to see smaller gains ranging from 2% in Japan to 0.3% in Germany, given that their productivity and skills base are already stronger than in emerging markets.
Providing an upskilled workforce could shift the global economy to be more knowledge intensive, with technology and machines taking over routine tasks and people working alongside them. Half of the additional GDP globally is expected to be gained in the business services, consumer services and manufacturing sectors.
Furthermore, sectors that have suffered from low-wage growth and output for decades could reap significant benefits from upskilling. Through upskilling, the
health and social care sector could add an additional GDP of US$380 bil by 2030.
Meanwhile, recognising that GDP does not give a complete picture of how an economy is doing, the quantitative data in the report is complemented by qualitative analysis which demonstrates the broader advantages of developing good jobs – work that is safe, paid fairly, reasonably secure and motivating, and that emphasizes the uniquely human skills and traits of workers, thus delivering higher levels of productivity.
“It is clear that our economies aren’t currently delivering what people need,” Moritz added.
“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 where no one is left behind.” – Jan 28, 2021
