Latest Industry Statistics on the Technical Skill Gap

From early this year, I have been hearing conversations about the technical skill gap that continues to be a significant challenge for many industries in 2024.

Well, very obvious, with rapid advancements in technologies such as Generative AI, Machine Learning, and Cybersecurity, to name a few, intense need for skilled professionals is on the rise.

But where does that leave our existing workforce who is already in a job where these technologies are disrupting their work and questioning their current job skills, each day?

What happens to these individuals? They cannot become redundant overnight, because they do carry very strong skillsets of collaboration, undiluted work ethics, and above all experience in their domains that cannot be taught to a newcomer by any AI. (Some may again question that too! But let that be the topic of conversation for some other day!)

Let’s hold our thoughts here and consider this.

Key Statistics

1. Widespread Skill Gaps:
   • Over 75% of leaders in the financial services sector and 73% in the tech industry report a lack of necessary skills within their organizations (Source: Springboard).
   • 95% of tech leaders face challenges finding skilled talent, with 51% predicting hiring difficulties due to a lack of applicants with the necessary skill sets (Source: Robert Half).
2. Skill Development Trends:
   • 79% of organizations are actively pursuing initiatives to address both technical and interpersonal skill gaps (Source: InStride).

How? You may ask.

Well, there are only two ways to bridge this gap.

1) Continuous learning and reskilling of the existing workforce is crucial. With many organizations recognizing the need for employees to upskill or reskill annually to maintain a competitive edge with additional advantage of domain experience earned over years(Source: Coursera, Robert Half).

2) Ensuring that the new workforce set to begin their professional journey in 3-4 years have enough opportunities to be niche-skilled, gain industry experience by exploiting as many internship opportunities as possible.

Upskilling vs. Hiring:

• Many companies prefer upskilling their existing employees over hiring new talent. This strategy helps retain trusted employees, leverages existing company knowledge, and addresses skill gaps more sustainably.
• 64% of learning and development (L&D) professionals prioritize reskilling the current workforce (Source: InStride).
• Upskilling initiatives, including continuous learning programs and strategic workforce education, are seen as essential for retaining and developing talent (Source: Coursera).

• Companies like Amazon and Walmart are leading by example, offering tailored training programs to empower frontline workers and bridge skill gaps (Source: Springboard).

That leaves us with a huge market to tap into. Like I mentioned earlier, 79% companies/employers require upskilling solutions.

Calling out all L&D professionals to look up, as the golden era of learning is no way close to setting … atleast for another decade!

What are these skills that are in high demand?

Will cover in our next post on ‘Future Skills in Demand and Preferred Strategies’