Roles stay open for months despite generous recruiting budgets. Across many markets, the gap between the skills employers need and the skills available has widened as AI scales, populations age and demand for green technology grows. The question for HR and executive teams is how to prepare a workforce when skills change faster than people can learn them.
The gap in numbers
Source: World Economic Forum, Future of Jobs Report 2025
The World Economic Forum's Future of Jobs Report 2025 projects that structural change will displace 92 million jobs by 2030 and create 170 million, a net gain, with 22% of today's jobs affected either way.
The OECD Skills Outlook 2025 describes a paradox: employers report shortages while many workers' skills go unused in their current roles, which holds back productivity and innovation. In Asia-Pacific, where digital expansion is fast, gaps in advanced technical fields are widening. Healthcare, cybersecurity, data analytics and green manufacturing are among the hardest-hit sectors.
The challenge is no longer only about producing more skilled individuals, but about creating labour markets… that make effective use of available skills.OECD Skills Outlook 2025
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What is driving the shortage
- AI is creating demand for hybrid roles such as data ethicists and AI governance specialists.
- Labour pools are shrinking in ageing economies while emerging markets struggle with underemployment.
- Education is lagging behind the market: the skills required for the average job have changed by around 25% since 2015.
- LinkedIn's Economic Graph suggests skills-based hiring could widen talent pools by up to 34 times in some sectors.
Labour market trends for 2026
75% of companies agree that people skills are even more important in the age of AI.LinkedIn, 2026 Davos report
- Skills-first hiring is spreading, with IBM and Google among the early adopters.
- Through microcredentials, under programmes such as SkillsFuture Singapore, people close specific gaps quickly.
- Demand is growing fastest for hybrid skill sets, such as AI with governance or engineering with analytics.
- Regional priorities differ: North American employers focus on AI and security, while Asia-Pacific focuses on digital and manufacturing skills.
What it means for business leaders
PwC's Global Workforce Hopes and Fears Survey 2025, with nearly 50,000 respondents, found that 54% of workers now use AI every week, and that many feel overwhelmed by it. Reskilling is therefore an urgent priority.
- Audit your skills. Measure the capability you have against the roles you need, using assessment data rather than self-reported CVs.
- Partner for targeted upskilling. Work with national programmes and content providers on the specific gaps you find in the audit.
- Build a learning culture. Give people pathways tied to their own roles and interests, and track completion against the gap.
- Plan for 2030. Map how your critical roles are likely to change, and start developing people for them now.
