The shelf life of skills is getting shorter due to several factors, including the rapid pace of technological advancements, changes in the job market, and the increasing need for adaptability and continuous learning.
Technological advancements are occurring at an unprecedented rate, with new tools and technologies emerging constantly. This means that the skills needed to perform certain jobs are constantly changing, and individuals must continually update their knowledge and abilities to remain competitive in the job market.
Additionally, changes in the job market are contributing to the shorter shelf life of skills. Many industries are being disrupted by automation, artificial intelligence, and other technological advancements, leading to changes in the types of skills that are in demand. Jobs that were once considered stable and secure may now be at risk of automation or obsolescence, requiring individuals to continuously develop new skills to remain employable.
Finally, the increasing need for adaptability and continuous learning is also contributing to the shorter shelf life of skills. In today’s fast-paced world, individuals must be able to adapt quickly to new situations and learn new skills on the fly. This requires a mindset of continuous learning and a willingness to invest time and resources into developing new skills.
Reduction in training
If we are to adapt to the changes seen in the workplace, however, we need to be able to get the training we need to learn new skills and either return to the workforce or pivot to a new career. Research from the London School of Economics suggests that while training is usually the most effective route into new work, it’s increasingly something that is unavailable to many of us.
The paper reveals that the proportion of workers who say that they’ve been involved in work-related training in the past few months has fallen by 5 percent to less than a quarter. This fall was particularly sharp among the under-25s. There was also a status divide, with those already well-educated receiving more training than their less-educated peers.
This has clear implications for those who are currently unemployed. The report revealed that just 13% of those currently out of work had received any training in the past year. What’s more, just 10% received any training that resulted in some form of qualification.
Reducing mobility
The dearth of training opportunities among the least educated is cause for concern, particularly as global research suggests that adult education offers greater returns for this cohort. Moreover, labor market data underscores the difficulty of acquiring new skills once one has already joined the workforce.
Recent trends in the U.K. labor market have witnessed a decline in job mobility, with much of the shifting occupational landscape attributed to the entry and exit of workers, rather than existing employees transitioning from waning to burgeoning sectors.
This is especially problematic as research from the Resolution Foundation suggests that people are generally ineffective at moving from declining sectors to those that are expanding.
“In 2000, 3.2 percent of workers moved jobs per quarter, and 1.7 percent of workers moved jobs to a different sector per quarter,” the authors explain. “In 2019, the rate of job mobility was 2.4 percent, 25 percent lower than in 2000, and the sector mobility rate was 1.1 percent, 35 percent lower than in 2000.”
The LSE researchers believe that the paucity of workplace training underpins this poor level of mobility.
According to recent findings, most forms of training are only slightly correlated with significant job moves, particularly in terms of transitioning across industries. However, among workers who received longer forms of training (excluding those related to hobbies or health and safety), about 15% switched industries within a 12-month period, compared to roughly 12% of those who had not received any training in the previous year.
This rate remains consistent at 14% when focusing specifically on training leading to a qualification. Notably, full-time education is the form of training that is most strongly linked to significant job moves, with the odds of switching industries increasing to 23%. Nevertheless, very few adults participate in full-time education, as the opportunity costs of lost earnings and tuition expenses deter many from returning to full-time study as an adult.
Returning to work
Training also plays a crucial role in facilitating re-entry into the job market, with approximately 13% of non-working individuals participating in training each year. Empirical evidence demonstrates that training has a positive correlation with re-employment within two years of becoming workless, with 54% of non-trainees returning to employment within the same timeframe, compared to between 69 and 71% of those who had undergone training (depending on the type of training).
While these findings suggest that training can be instrumental in enhancing job prospects for the workless population, it must be acknowledged that relatively few workless individuals receive training. Further analysis is required to ascertain the reasons behind this phenomenon, including an exploration of the costs of training and the quality of jobs that it leads to.
Given the stagnant growth of productivity and the growing imperative for wages to keep up with inflation, an improved system of training and skills provision in the U.K. can yield significant benefits. International evidence suggests the same story is true in many countries, and if society is to better adapt to the changes introduced by the technologies of our time, it’s a story that needs to have a better conclusion than is currently the case.
