Why we need a new focus on skills amid the technological disruption of the jobs market

In an era defined by rapid technological innovation, the World Economic Forum’s 2024 Annual Meeting in Davos is a crucial platform to discuss the challenges and opportunities that lie ahead for the future of work.

Technology's impact on job dynamics is evident, as highlighted by the World Economic Forum’s The Future of Jobs Report 2023, which estimates that by 2025, automation and artificial intelligence (AI) are expected to create 12 million more jobs than they displace globally.

This paradoxical situation underscores the transformative potential of technology, which not only displaces roles but also generates new opportunities.

However, it also underlines the necessity for a paradigm shift in how individuals approach career development, as a clear need arises for a workforce that is highly adaptable and possesses the skills demanded by emerging roles.

Here we explore the disruptive role of technology in the Middle East’s labour market and how governments, employers, education providers and job seekers can work together to rebuild trust in our talent and job markets.

As technology advances, traditional educational systems in the Middle East have struggled to keep pace, as highlighted by the The Arab World Competitiveness Report.

The rigid structures of academic institutions are ill-equipped to provide the agile and adaptable skill sets demanded by the contemporary job market. Formal education is becoming less relevant with companies increasingly recognizing the limitations of traditional degrees in assessing workplace readiness.

A study by PwC found that more than 72% of employers in the Gulf Cooperation Council (GCC) believe that practical skills are more important than degrees when evaluating potential hires.

Indeed, it was also found that, despite a general increase in educational levels, skills and knowledge acquired by workers through education were often not relevant to business needs – emphasizing the need for dynamic approaches to education which align with the evolving demands of the workforce.

Furthermore, the pace of technological change is so rapid that degrees earned and skills learned today may become obsolete in a matter of years. For instance, the recent surge in demand for computer science degrees and coding skills was significantly slowed down by the emergence of advanced language models like ChatGPT, which have shown their potential to replace a significant number of coding jobs.

This unpredictability necessitates a switch in mindset, emphasizing the importance of continuous lifelong learning and adaptability. Individuals can no longer rely on a single skill for the duration of their career, urging them to develop a diverse skill set that aligns with the ever-changing demands of the job market.

As such, the education landscape is undergoing a transformative shift with micro-credential courses and practical skill programmes emerging as formidable contenders to traditional education models.

In response to the fast-paced evolution of industries and the demand for job-ready skills, individuals and employers are increasingly turning to targeted, short-term programmes that focus on job-specific competencies.

Micro-credential courses, often offered by reputable institutions and industry experts, provide learners with the flexibility to acquire practical skills in a concise and efficient manner.

This trend is particularly evident in the tech industry, where bootcamps and specialized certifications have gained prominence over recent years.

In the contemporary job market, the significance of job-specific skills is undeniable, yet the dynamic and ever-changing nature of industries has underscored an equally vital need for ‘foundational’ skills – which form a core set of abilities that transcend specific job roles, laying the groundwork for a resilient and adaptable workforce.

With these skills, job seekers can cultivate the mindset and flexibility necessary to navigate evolving career landscapes, ensuring their ability to continuously learn and adapt even as their technical skills become outdated.

In essence, foundational skills act as a keystone enabling individuals to effectively apply and contextualize the technical expertise gained from specialized training programmes.

Governments all across the GCC have started to realize the importance of foundational skills and begun investing in targeted programmes covering mindset development, leadership, problem solving, communication and more, to impart these skills into younger generations.

For individuals seeking to upskill or reskill, the explosion of online learning platforms has fortunately given rise to a vast sea of courses covering an array of subjects. However, the sheer volume of content can be daunting, leading to what is frequently referred to as ‘content overload’.

This often results in learners spending excessive amounts of time sifting through courses, hindering their ability to choose curriculums that are right for them. Moreover, the quality of online courses is not consistently assured, with many platforms lacking rigorous content curation processes.

This results in a portfolio of outdated, inaccurate or poorly structured courses, and raises concerns about the effectiveness of e-learning in delivering the necessary skills for the ever-changing job market.

To truly prepare the workforce for the future, investments are needed from governments, companies, educational institutions and job seekers themselves.

Governments need to set up an ecosystem that is suitable to continuous learning through the provision of infrastructure and training subsidies, while companies must actively invest in continuous upskilling and reskilling programmes to keep their employees abreast of the latest developments.

Universities must complement their traditional curriculums with additional learning opportunities that foster adaptability and practical skills acquisition. Likewise, learning providers need to invest into better curation mechanisms to ensure high quality and relevant content is being disbursed to learners.

Finally, job seekers should research and understand the market and where it is headed, and invest into skills that will further their careers and maximize employability.

By acknowledging the transformative power of technology, re-evaluating the role of traditional education and embracing targeted, high-quality learning approaches, we can rebuild trust in our talent and job markets.

The key lies in fostering a culture of continuous learning and adaptability, ensuring individuals are not merely prepared for today's jobs but equipped with the necessary skills to thrive in the ever-evolving landscape of tomorrow.