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What We’re Reading - Oct 10th: Skills Gaps, Labor Shortages, and Future of Workforce Development

Written by Virtual Internships | Oct 9, 2024 9:33:49 PM

 

Welcome to this week’s edition of our Weekly Reading Round-Up! This time, we’ll dive into the challenges of skills shortages in the UK, how the retirement of Baby Boomers is reshaping the U.S. labor market, and the rise of microcredentials as a fast-track to in-demand careers.

We’ve summarized each article in bite-sized TL;DRs, so you can stay informed on the latest workforce development trends without missing a beat.

Let’s explore the key insights shaping the future of education and employment!

 

Skills England: Driving Growth and Widening Opportunities

Read on UK Government
 
TL;DR: The Skills England report highlights significant skills shortages in the UK, with over one-third of vacancies in 2022 resulting from skills gaps. The decline in employer investment in training over the past decade has exacerbated this issue, with training expenditure dropping by 19%. Skills England aims to address these challenges by creating a world-leading skills system to grow the economy and match the workforce to employer needs. 
 

Why Educators and Employers Should Care: With over 90% of critical roles requiring work-related education or training, businesses must invest in upskilling their workforce, while educators need to align their programs with industry demands. By working together, both can ensure the next generation is equipped with the necessary skills to thrive, particularly in high-demand sectors like health, social care, green jobs, and AI.

 

The Rising Storm: Building a Future-Ready Workforce to Withstand the Looming Labor Shortage

Read on Lightcast

TL;DR: The retirement of Baby Boomers, born between 1946 and 1964, is drastically changing the U.S. labor market. This generation, once instrumental in shaping the workforce, is now leaving it in droves, with 80% of the 5 million workers who exited since 2020 being over the age of 55. As Boomers retire earlier than expected, the workforce faces a critical shortfall, with an estimated deficit of 6 million workers by 2030. Key factors like declining birth rates, falling labor force participation, and misalignment between workforce growth and demand are compounding the issue. Solutions to address the labor shortage include increasing female participation, boosting immigration, and leveraging automation.

Why Employers Should Care: As millions exit the workforce, businesses across industries, particularly healthcare and food services, are already struggling to fill positions. With fewer young workers entering the labor market, employers need to rethink talent strategies and explore alternatives such as reskilling their existing workforce, embracing remote work globalization, or expanding immigration pipelines. 

 

The Microcredential Generation

Read on Inside Higher Ed

TL;DR: A growing number of young adults are opting for microcredentials over traditional degrees, seeking faster and more affordable routes to in-demand careers. Programs like Northern Maine Community College's mechanized logging and forest trucking offer practical, hands-on training, aligning with the preferences of students who feel traditional academia is not for them. From welding to software engineering, microcredentials provide a variety of pathways, catering to different industries and learners. Though promising in many ways, concerns linger about the long-term career potential of such credentials, with debates over their value compared to college degrees.

Why Employers and Educators Should Care: Microcredentials are filling critical workforce gaps by providing targeted skills training for industries like healthcare, tech, and trades. Employers benefit from a more direct pipeline of job-ready candidates, while educators can meet diverse student needs by offering flexible, career-focused alternatives. As more students bypass degrees for credentials, both sectors must adapt to ensure these learners are well-supported and prepared for sustainable careers. 

 

Neither College Nor Career Ready

Read on Forbes

TL;DR: A recent survey shows that 75% of employers are dissatisfied with their Gen Z hires, citing poor communication, lack of motivation, and weak organizational skills. Moreover, many college students are reportedly entering higher education without having read an entire book. Greene attributes these issues to the test-centered education reforms of the last two decades, such as No Child Left Behind and Common Core, which have shifted focus from independent learning and critical thinking to standardized test preparation. These policies, which promised to make students "college and career ready," may have instead stifled essential skills development.

Why Employers and Educators Should Care: Educators play a crucial role in shaping the future workforce, and this article signals a gap between educational outcomes and workplace readiness. The emphasis on standardized testing over comprehensive skill-building may have left students ill-equipped for real-world challenges. By rethinking how curricula are structured and prioritizing critical thinking, communication, and autonomy in learning, educators can help bridge this gap and better prepare students for both college and careers.

 

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