Like the digital gap in schools, the skills gap in the U.S. workforce has received widespread attention – not just from the media but from academia, consultancies, and government agencies. As things stand now, higher education and postsecondary institutions have struggled to effectively prepare job seekers for the workplace, which, combined with unrealistic employer expectations regarding the skillsets of their new hires, has left millions of unfilled job openings.
Without intervention, this skills gap will only widen over time. According to research from Deloitte and Pew Research, millions of jobs are expected to remain unfilled over the next several years. The silver tsunami of retiring Baby Boomers (an estimated 10,000 Boomers will turn 65 every day in the U.S. until 2030, and the percentage of workers between the ages of 65 and 74 is expected to cross 30% over the next two years), in addition to the influx of students entering the workforce without needed skills, are the main drivers of this phenomenon.
In short, there is a mismatch between what the workforce demands and the skills that individuals entering the workforce are bringing to the table.
What can be done, and what role does technology play in addressing this issue?
Here we talk about the challenges businesses face when it comes to training and finding individuals for the workforce, as well as some of the ways in which higher education institutions can use technology to address the widening skills gap.
According to Georgetown University’s Center on Education and the Workforce, roughly two-thirds of the 165 million jobs in the United States this year will require a higher education qualification. Unfortunately, rising education costs, ballooning student debt, and incongruity between employer needs and employee skillsets paint a stark picture for the future employment prospects of tens of millions of Americans.
Here are a few additional statistics from the past year:
At the same time:
According to one survey, 90% of companies would consider someone without a 4-year college degree for a job, considering certifications or specializations as a sufficient substitute. Many organizations may hire people who attended skills bootcamps or have other industrial or professional certifications, as well as using AI, upskilling current workers, and even hiring people who have a free online degree. The majority of employers feel that fresh college graduates are not prepared for the workplace, even though, as per a recent employer research report, employers do believe that college degrees are a worthy investment.
The combined economic impact of these realities is significant: the skills gap is expected to cost the U.S. economy an estimated $1.2 trillion over the next 10 years.
There are many ways to approach the problem of the growing skills gap. Here, we look at a few of the available solutions – and ways that higher education institutions in particular can help.
Colleges that offer traditional 4-year programs, as well as community colleges and institutions that offer diplomas or certificates, must thoroughly understand labor demands and trends and then tailor their program offerings toward workplace needs. Corporate training and employment partnerships can also be availed to do this. Consider the following:
The goals of these partnerships are clear: they give students the training they need to join the workforce upon graduation, and they give employers a rich talent pool with which to grow. However, these partnerships can also help identify skill gaps, which we discuss next.
One goal that can come out of higher education’s partnerships with employers and local corporations is to get a better sense of what they need versus what kinds of content and learning material is currently being offered at colleges, universities, and other training institutes. Only after relevant skills are identified can these courses be made available to current or future batches of students. If institutions fail to adapt to changing dynamics that are driven by technological advancements – or if they fail to leverage technology to stay relevant – their programs will not attract new students, and their graduates will be underprepared for new jobs.
Studies such as this Harvard Business Review report have shown that American employers struggle to fill jobs in skilled trades, IT, and accounting and finance – roles that typically require more education and training than a high school diploma but less than a four-year college degree. It is a unfortunate truth that community college and associate degree programs have been marginalized for so long, despite the fact that many two-year programs give students the training they need to be successful more quickly and at lower cost than their 4-year counterparts.
Consider the following ways that higher education institutions can utilize technology to help close the widening skills gap:
The efficacy of these and similar tech-driven solutions for improving the quality and relevancy of instruction hinges on building the right groundwork. We talk about the factors that can help you do just that in the next section.
According to the World Economic Forum, four key qualifiers must be present if we are to effectively address the issue of the skills gap:
Closing the skills gap will require improvements in all four areas. Then, we can begin to move the needle and see change for the individuals and industries that desperately need it.
There are many ways that technology can help close the skills gap, from providing high-quality instruction, allowing for personalized learning, and improving productivity and workplace readiness.
It all starts, however, with access and connectivity. Without connectivity and access to performant and cost-effective tech solutions customized to unique user needs – whether the user is a college-bound senior, a student at a traditional 4-year college, someone studying at a vocational institute or community college, or someone pursuing an associate degree – the vast potential of technology in closing the skills gap will go unharnessed.
To learn about developing or deploying a solution that can work for you, contact a Kajeet Solutions Engineer.