Delivering on the jobs of the future

Key challenges

• Legacy institutional structures: Universities, companies, and government agencies have evolved organizational structures designed to train workers for a slowly evolving economy—not today’s whitewater rapids. As a result, there is often a mismatch between labor supply and demand, resulting in the inability of companies to fill certain skill positions, on the one hand, and underemployed workers, on the other.
• Rapidly shifting skills: Many organizations that develop talent face the challenge of preparing workers for jobs that don’t yet exist. In an era of shifting technology, this will be an enduring challenge.
• Second-order effects: While some impacts of AI are foreseeable, second-order effects can be more difficult to predict. AI is likely to create entirely new job opportunities with novel skill demands.
• Limits of human adaptability: Technology may be advancing faster than humanity’s ability to keep pace. While it is relatively easy to train for a specific skill, it is harder to train a human to be highly adaptable.

Trend in action

Getting ahead of the curve

One of the biggest challenges in preparing people and organizations for future jobs is the uncertainty of what those jobs will be. Rapid technological advancements make it difficult for even employers to forecast the shape of their industry’s job market in the next five years and beyond. Predictions about the future job market vary, ranging from extremely positive to extremely negative. This uncertainty complicates government efforts to prepare workers for the future.

To help with this uncertainty, some governments are using data analytics and strategic partnerships to stay ahead of disruption rather than merely reacting to it.

Using data to decode the future of work

Data-driven workforce planning is important for governments to anticipate and prepare for future skills needs. Some agencies are making efforts to democratize labor market data by putting it in the hands of job seekers, employers, and training providers. This will help them understand their position in the labor market and identify emerging opportunities, enabling job seekers to overcome adjacency biases and explore opportunities beyond their personal experience.

Additionally, some governments are supporting real-time labor market information and evaluating education programs’ return on investment to understand which degrees can better prepare students for jobs.

North Carolina conducted an evaluation of 765 undergraduate and 599 graduate programs within the University of North Carolina system. The evaluation examined costs, student outcomes, and return on investment, which is defined as lifetime earnings minus college costs. Undergraduate degrees showed a median incremental lifetime ROI of US$494,091, while graduate degrees had a median ROI of US$930,515.⁴ Universities responded by eliminating a number of degree programs with comparatively low ROI,⁵ steering students toward degree programs with more lucrative career prospects.⁶

Some governments are also leveraging AI and skills-based matching to create more efficient labor market connections while gathering valuable workforce data.

• Singapore’s MyCareersFuture platform uses AI-powered job matching to connect citizens with relevant employment opportunities. The system displays “job fit scores” that compare the skills entered by users against those identified in job descriptions, making it easy to see how well someone matches a position. The platform leverages big data and algorithms to analyze real-time labor market information, helping predict future skill requirements. Used by 200,000 citizens weekly and hosting over 40,000 active job listings, the platform is free and available to Singaporean citizens and permanent residents.⁷

Higher education evolution and innovation

Colleges and universities globally are experiencing pressure to adapt to changing circumstances. Concerns about the high cost of higher education and the burden of debt may be prompting some potential students to question the ROI of paying for college.⁸ Student expectations may be shifting as well. A 2024 survey found fewer students view higher education’s purpose as delivering a well-rounded liberal arts education and more as providing credentials for future professional success.⁹

Colleges and universities are expected to play a key role in preparing workers with the skills needed in the future. Rapid shifts in technology are contributing to a shorter half-life of skills, suggesting that education might benefit more mid-career workers. Some policymakers recognize the role that higher education can play in reskilling these older workers, and some companies are increasingly seeing benefits in forming connections with higher education. After all, these institutions need students, while the economy needs skilled workers.

Some colleges and universities are shifting their business models to be more student-centric, seeking to accommodate the needs of diverse learners at different stages of their lives.¹⁰ Updates include online programs, flexible scheduling, and offerings that go beyond traditional two- and four-year degrees. Delivering education in a manner that suits busy older workers appears to be resonating: Nearly 70% of students surveyed prefer fully online, hybrid, or blended learning options, compared to around 30% for face-to-face learning.¹¹ Perhaps, as a result, online-only or online-first institutions are growing at a rapid pace. The largest US degree-granting institutions by enrollment—Utah-based Western Governors University and Southern New Hampshire University—are mostly online.¹²

How can universities innovate to strengthen the connection between education and professional success throughout one’s career? A 2023 survey revealed that 75% of administrators saw public-private partnerships at their campus expanding with interest in collaboration with organizations outside higher education (figure 1).¹³

The move toward modular credentials and customized upskilling signals an emerging shift in higher education: a need to connect learning more directly with professional success. Beyond providing flexible and personalized learning options, some institutions are collaborating with industry to align their offerings with real-world demands.¹⁴ This approach aims to enhance the relevance of academic programs, help graduates gain in-demand skills, and support lifelong learning.

Modular credentials for customized upskilling

Colleges and universities can take steps to meet people where they are and align with rapidly changing industry needs. The evolution includes offering more flexibility in how and when courses are offered, and expanding a variety of credentials beyond the traditional two- and four-year-degree model. Institutions also offer stackable credentials, making continuous, lifelong skill development more achievable.

• India’s Ministry of Education launched the Academic Bank of Credits (ABC) in 2020 to serve as a digital storehouse for students’ academic credits. The ABC facilitates academic mobility by allowing students to transfer between institutions mid-course and carry forward their credits. It also provides flexibility in completing degrees, enabling students to drop out and later rejoin the same or a different institution.¹⁵ Universities and colleges registered with the ABC can seamlessly access students’ academic scores. As of January 2024, more than 30 million students have registered on the ABC platform.¹⁶ Singapore and France offer similar credit systems for lifelong upskilling.¹⁷
• Georgetown University’s Flex Program allows students to balance work and school by offering the same faculty, courses, and degree as the traditional academic program but with flexible completion times, ranging from two to five years. The program breaks degrees into smaller, usable credentials that provide evidence of skills, and creates easy on/off ramps for students to combine work and learning.¹⁸ In 2021, 47% of Flex MBA students reported taking on new work responsibilities since starting the program, and 45% achieved an increase in seniority.¹⁹

Aligning higher education and labor market demands

Some colleges and universities are forming deeper relationships with industry to improve curriculum relevance and employment outcomes. These programs vary but generally include flexible academic programs, sometimes including internships, that meet the needs of both workers or learners and an evolving labor market.

• Texas House Bill 8 introduced an outcomes-based funding model for community colleges, aligning financial incentives with student success metrics such as degree completion and job placement in high-demand fields. By shifting from enrollment-based to performance-based funding, House Bill 8 encourages colleges to continually update their curricula in partnership with industry to meet evolving labor market needs. The bill also supports an initiative facilitating seamless transitions for students into workforce-relevant programs—a reform that confirms educational offerings are directly responsive to the skills employers need, boosting graduates’ employment prospects.²⁰
• In August 2024, the Arizona Office of Economic Opportunity launched the ReadyTechGo program to standardize technical education in community colleges and prepare students for jobs in the state’s manufacturing sector. The program teaches automated industrial technology through a flexible curriculum that ranges from two-week introductory certificates to a two-year associate degree, with specialization paths in electric vehicles, semiconductors, medical devices, and aerospace. Four participating schools share a curriculum that allows student transfers between locations. Training takes place in facilities equipped with industry-standard equipment that mirrors real factory environments, where students learn to operate, repair, and maintain automated electro-mechanical systems, product assembly lines, and process control equipment.²¹
• Coventry University’s Institute for Advanced Manufacturing and Engineering integrates academic teaching with live manufacturing operations. This university-industry collaboration—known as the “UK’s First Faculty on the Factory Floor”—began as a research consortium and evolved into a joint venture that manufactures high-performance electric vehicle batteries. The facility now supports both degree-level education and workforce capability development for the growing UK electric vehicle supply chain, demonstrating how “learning factories” can bring together academic research, skills development, and commercial manufacturing.²²

Meeting the worker shortage through industry partnerships

Industries around the world are facing mismatches between available skills and labor force needs—and foreseeing widening gaps. US manufacturing faces a shortage of 1.9 million workers by 2033, India’s semiconductor sector needs an additional 250,000 to 300,000 professionals by 2027, and Japan’s construction industry demands at least 1.3 million skilled workers by 2025.²³ Skills shortages in emerging fields such as AI could exacerbate the problem.

Seeming to recognize this challenge, some leaders are forging partnerships where businesses co-invest with government agencies and higher education institutions to train workers in emerging skills throughout their careers. Whether through undertaking apprenticeships, designing course curricula, or partially funding the cost of training, businesses partnering in skills training can help workers acquire the skills that businesses need. This collaboration can increase the chances of workers finding employment and make it easier for businesses to access the skilled labor they require. Additionally, some governments are employing several workforce skill strategies to help meet worker shortages, many involving an element of business co-investment.

Encouraging apprenticeships for in-demand industries: While apprenticeships have traditionally been associated with the skilled construction trades, modern programs are helping to address workforce shortages in many sectors.

• Ireland has significantly expanded its apprenticeship system beyond traditional trades. From 2014 to 2023, the National Apprenticeship Office increased programs from 27 predominantly construction-focused apprenticeships to over 70 programs spanning sectors such as biopharma, information and communication technology, finance, insurance, and logistics. These programs provide €2,000 per apprentice annually for nontraditional sectors and are administered centrally through a digital platform that manages registration, tracking, and communication between stakeholders.²⁴ An additional initiative helps small employers with mentoring, certification, and guidance. As of December 2023, the system supported 27,470 apprentices and 9,200 employers.²⁵ Looking ahead to 2030, Ireland aims to register 12,500 new apprentices annually, with a particular focus on the construction and craft sectors to help meet national housing and climate action goals.²⁶
• The German Dual Vocational Training System combines theoretical education at vocational schools with practical training at industry workplaces. This dual-track “experiential learning” approach typically spans two to three and a half years.²⁷ The system promotes regulated collaboration between small and medium-sized companies and publicly funded vocational schools to confirm that training directly aligns with industry needs. Currently serving approximately 330 recognized occupations, the program is continuously updated through input from employer organizations and trade unions to maintain relevance in light of emerging technologies.²⁸ This model can allow companies to train potential employees in company-specific skills while significantly reducing recruitment costs and minimizing hiring risks.²⁹

Partnering to deliver relevant training

Workforce transformation can benefit from strong partnerships across sectors. As a result, public-private collaboration has emerged as a key strategy to develop training programs that align with industry needs.

India’s Project AMBER (Accelerated Mission for Better Employment and Retention) trains learners for future-resilient job roles identified through industry demand assessments. This collaborative initiative between the Ministry of Skill Development and Entrepreneurship, the National Skill Development Corporation, the Generation India Foundation, and private partners under the World Bank’s Skill Acquisition and Knowledge Awareness for Livelihood Promotion program.³⁰ The program features a blended finance model with 50% private sector contributions, helping with employer engagement from the start.³¹ In the three months after the first class graduated, 73% of the nearly 26,000 graduates found jobs, with 85% of those jobs linked to training and paying higher wages.³²

Some regional workforce development programs are also actively partnering with industry. For example, EARN Maryland funds training programs for in-demand job skills based on strategic industry partnerships. Employers collaborate with other companies with similar talent needs to define needs and propose training programs to the state. Since its inception in 2014, EARN has funded 60 strategic industry partnerships and helped more than 9,000 job seekers find employment.³³

Bridging workforce transitions

• Employees impacted by disruptions, such as technological obsolescence or other factors, may require public assistance. Implementing programs that offer training in essential fields can help these individuals transition from reliance on assistance to fulfilling vital roles within the workforce. Canada has launched a CA$30 million retraining initiative designed to assist workers affected by mass layoffs.³⁴ The program activates when an organization permanently lays off 50 or more employees within a four-week period. Local organizations—including nonprofits, municipalities, and educational institutions—deliver the program by assessing local needs, organizing retraining programs, providing career counseling, and coordinating job placement services. The funding supplements existing federal and provincial employment programs and operates based on local labor market conditions and workforce needs.³⁵
• Victoria, Australia’s Gippsland region, which has historically supplied 90% of Victoria’s electricity through coal power, is undergoing a major workforce transition as 5GW of coal generation is set to close in the next 15 to 20 years, beginning with Yallourn Power Station in 2028.³⁶ To help address this challenge affecting more than 500 skilled workers, a detailed transition guide has been developed in collaboration with the government of Victoria, Latrobe Valley Authority, and industry partners. The guide shows how coal industry workers can transfer to offshore wind sector jobs with minimal additional training. For example, boilermakers can become blade repair technicians or fabrication supervisors, while mechanical fitters can transition to wind turbine technicians or marine engineers. Many certifications are available through local institutions and require only two weeks to six months of training. The plan can help workers stay employed while supporting Victoria’s target of generating 9GW of offshore wind capacity by 2040.³⁷

• Singapore is implementing an approach to support mid-career workers in their professional upskilling journeys, particularly targeting those of ages 40 and older. The centerpiece is the SkillsFuture Level-Up Program, which combines several components: a S$4,000 subsidy for course fees, access to heavily subsidized full-time diploma programs, and an allowance providing up to 50% of previous income (capped at S$3,000) for those undertaking full-time training. In 2023, about 520,000 individuals and 23,000 employers participated in training programs supported by SkillsFuture Singapore (SSG).³⁸

Singapore’s implementation strategy operates through several interconnected programs and agencies working in close coordination. A career transition program forms the foundation, offering industry-relevant training courses with substantial subsidies—up to 70% baseline for all Singaporeans and enhanced to 90% for those of ages 40 and older.³⁹ Officials vet these courses, which are provided by polytechnics and accredited institutions, to verify strong employment outcomes, particularly in growth sectors such as health care, digital technology, and renewable energy. This is complemented by a career conversion program that provides structured on-the-job training with funding of up to 90% of employee salaries during training periods of 3 months to 24 months.⁴⁰ Supporting these programs are career services through grocery retailer NTUC FairPrice’s Employment and Employability Institute and Workforce Singapore’s Career Matching Services, offering one-on-one career coaching, job fairs, résumé writing support, and personalized guidance through the transition process.⁴¹

Tools and strategies to deliver on jobs of the future

• Implement real-rime labor market intelligence. Governments should consider investing in dynamic platforms that provide job seekers and employers with up-to-date data on job trends, skills demand, and salary benchmarks across localities. These systems can suggest relevant upskilling pathways and inform policy decisions, moving beyond generic data to actionable insights for individuals and strategic workforce planning.
• Drive job-centric reskilling initiatives. Shift from broad reskilling programs to targeted initiatives that can address the needs of diverse groups across all career stages. Focus on future-proof skills and leverage analytical tools using public and private data to forecast evolving labor demands, verifying that training is directly aligned with upcoming industry needs and is promoting adaptability throughout working lives.
• Build support ecosystems. Address economic inactivity by establishing wraparound services that can enable participation in education and training. Offer support such as child care, transportation, financial aid, and career counseling to remove barriers and ensure individuals can fully access opportunities for skills development and career advancement.
• Promote collaborative workforce partnerships. Encourage structured partnerships that promote collaboration by integrating labor supply stakeholders (for example, universities) and private sector leaders into governing boards of relevant institutions. This can help with shared accountability, resource pooling and curriculum innovation, and can foster an approach to workforce development that meets evolving industry demands.
• Champion flexible and accessible work models. Proactively address the evolving preferences of the workforce by promoting policies that support diverse work arrangements, including part-time and flexible roles. Recognize and facilitate opportunities for older workers and those seeking work/life balance, fostering a more inclusive and adaptable labor market that maximizes participation and economic contribution.
• Establish standardized skills frameworks and digital credentials. Develop national or international standardized skill taxonomies to create a common language across industries and educational institutions. Complement this with digital credentialing platforms that issue verified, stackable credentials. This can help individuals to showcase their evolving skills and support lifelong learning, facilitating clearer pathways for career progression and recognition of competencies across multiple career journeys.