Three Ways the Government Is Tackling the Global Skills Crisis

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Sagar Goel

BCG

Joerg Hildebrandt

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The government needs to take immediate action. Today, 50% of the global workforce will need to upskill or reskill to remain competitive; the World Economic Forum predicts this figure will rise to 90% by 2030. If this issue isn’t addressed, global GDP could suffer losses as high as $15 trillion by 2030.

By 2030, the vast majority of workers will need to reskill.‍‍‍‍

：BCG

We have proposed three strategies to the government aimed at addressing the challenges in the skills market and fostering a thriving national skills ecosystem.

1. Build an open, comprehensive digital skills platform

The government can address skill-market information asymmetry and coordination challenges by bringing together all stakeholders—job seekers, employers, and other key players, such as training and employment service providers, as well as financiers—onto a single platform. This platform will enable individuals to discover job opportunities, skills-training programs, and funding options, while helping employers identify the right talent. It will also allow ecosystem facilitators, like training providers, to promote their programs and gain accreditation, and empower financiers to showcase financing options for skills development, including grants and scholarships.

By integrating artificial intelligence into the platform, the government can enhance platform services, including:

Conduct predictive workforce planning by leveraging real-time labor market insights, tailored to job requirements and talent availability.
By automating skill assessments, certifications, and digital badge validations, we enhance trust in the talent pool.
Improve the candidate discovery process to enable employers to quickly access detailed insights into candidates' verified skills and past experience.
Personalized learning plans, supported by AI tutors and mentors, to accelerate skill development.

By establishing a robust technology backbone and interoperable technical designs, the government can encourage developers to create products for the platform—rather than having them build every service from scratch.

The French government has launched Mon Compte Formation, a digital platform for vocational training and skills development. Job seekers and employees can access their personal training accounts, enroll in courses from a directory of accredited training providers, and receive career guidance. The platform also consolidates available funding sources to help individuals cover the costs of skills training.

2. Enabling lifelong investment in skills

The government needs to encourage individuals, employers, and academia to shift their mindsets and embrace lifelong learning.

People often invest in skills only until their twenties; however, lifelong learning and continuous skill development are crucial for career longevity, employability, and overall quality of life. To help individuals cultivate a mindset of lifelong learning, governments could implement policies such as paid educational leave, offer lifetime learning credits for skill-training programs, and establish personal learning accounts to track the skill certifications they earn.

In Germany, residents of 14 out of the country's 16 federal states are entitled to five days of paid skills-development leave each year, which can be used for certified training programs. Each state provides financial support for these "skills-development vouchers," typically covering up to €1,000 or 50% of the training costs—whichever is lower.

When facing economic uncertainty, employers often resort to stopgap measures—such as offering short-term skills-training programs, making second-best hiring decisions, and, in extreme cases, even withdrawing investments or cutting jobs. To encourage employers to adopt proactive, long-term approaches to skills development, governments can introduce incentives like tax breaks tied to training and workforce development expenditures, provide one-time subsidies for sponsoring large-scale workforce skills-training initiatives, and recognize companies that deliver skills training in areas aligned with the national skills agenda. For instance, Singapore’s government offers a S$10,000 credit to incentivize employers to invest in their workforce through accredited training programs.

Academic institutions play a critical role in nurturing skills before individuals enter their 20s. However, due to perceptions that these institutions often lack relevance to industry and require significant time commitments—typically involving leave from work—their appeal for individuals seeking further skill development tends to diminish over time. To overcome these challenges, governments could establish credit banks, enabling employees to enroll in small, flexible learning modules that allow them to accumulate credits gradually and eventually earn full degrees. Additionally, they could create lifelong learning institutions that complement traditional higher education by offering work-integrated learning programs, lifelong learning modules, and robust partnerships with industry stakeholders.

Imperial College London represents a unique partnership between a leading higher education institution and major employers. Backed by a £290 million government investment, the college also includes employers on its governing body, enabling it to focus squarely on developing skills that meet urgent industry demands—and building a forward-looking talent pipeline for the future.

3. Developing Employment Skills and Entrepreneurial Abilities

Today’s employment landscape is severely impacted by gaps in essential job skills—such as interpersonal skills, self-awareness, digital proficiency, and industry-specific competencies. These skills are not only critical for the transition from education to the workforce but also vital for long-term career success. A survey by the Chartered Management Institute reveals that nearly 80% of UK employers believe new graduates do not arrive at work fully equipped with the skills needed for their roles. Meanwhile, in emerging markets, where self-employment rates soar between 30% and 50%, there is a soaring demand for entrepreneurial skills.

Some governments are taking steps to massively develop employment and entrepreneurship skills. Australia’s Employment Skills Training Program helps individuals build workplace- and industry-specific competencies, while also providing them with career guidance and job-search support. Meanwhile, India’s government, through its Ministry of Micro, Small, and Medium Enterprises, offers programs aimed at nurturing the next generation of entrepreneurs.

Given the rapid pace of technological change and the ever-shortening lifespan of skills, it’s clear that a new approach to lifelong learning is urgently needed. The government has a unique opportunity—and indeed must—seize this chance to make it happen.

The above content solely represents the author's personal views.This article is translated from the World Economic Forum's Agenda blog; the Chinese version is for reference purposes only.Feel free to share this on WeChat Moments; please leave a comment below the post if you’d like to republish.

Editor: Wang Can

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