Closing the Skills Gap: Insights from the 2025 World Economic Forum Jobs Report

The 2025 Jobs Report from the World Economic Forum highlights a critical challenge for businesses worldwide: the persistent and growing skills gap. As organizations face rapid technological change, economic uncertainty, and shifting workforce demographics, skill mismatches are emerging as a significant barrier to transformation. Here’s what leaders need to know—and how they can act.

The Scope of the Skills Gap

• Skill instability: By 2030, 39% of current worker skill sets will become outdated or require transformation. Although this represents a decrease from prior years, it underscores the ongoing need for upskilling and reskilling across industries.

• Training disparity: While 59% of the workforce will require training by 2030, 11% are unlikely to receive the reskilling they need, putting their employment prospects at risk. This gap is most pronounced in roles requiring new technical or technological expertise.

• Demand for new skills: The fastest-growing skills include analytical thinking, AI proficiency, resilience, flexibility, and leadership. Conversely, manual dexterity and endurance are expected to decline in relevance.

  
  

Employer Strategies to Address the Gap

The report identifies strategies that employers are planning to adopt to mitigate skill shortages:

1. Upskilling in current roles: About 29% of employees can be reskilled to adapt to their existing positions.

2. Redeployment: Another 19% of workers could be trained for new roles within their organizations.

3. Proactive hiring: Seventy percent of businesses aim to recruit talent with new skill sets, emphasizing external acquisition alongside internal development.

However, 40% of businesses also plan workforce reductions as outdated skills become a liability, highlighting the urgency of proactive reskilling efforts.

Actionable Opportunities for Managers

• Invest in Lifelong Learning: Establish continuous learning programs tailored to both technical and soft skills. This ensures employees can keep pace with advances in technology and evolving business needs.

  • Technical focus areas: AI, data analytics, and cybersecurity,

  • Soft skill focus areas: leadership development, emotional intelligence, and continuous learning

• Create Structured Reskilling Pathways: Identify roles at risk of displacement and provide targeted training to transition workers into emerging roles, such as data analysts, project managers, or technical support professionals.

• Collaborate with Education Partners: Build partnerships with online learning platforms, universities, or trade schools to provide employees with access to in-demand skill certifications.

• Build Resilience through Leadership Coaching: Skills like agility, creative thinking, and social influence are rising in importance. Investing in leadership coaching can help current and future managers thrive in dynamic environments.

The Takeaways:

The report makes it clear: failing to address the skills gap could hinder business transformation and exacerbate workforce challenges. For employees, it could mean reduced employability, and for businesses, it could result in reduced competitiveness and innovation potential.

By prioritizing upskilling and reskilling strategies today, businesses can future-proof their workforce and position themselves for success in a rapidly changing labor market.