The World Economic Forum today launches Reskilling Revolution, a multistakeholder initiative aiming to provide better education, new skills and better work to a billion people around the world by 2030.
The Reskilling Revolution platform has been designed to prepare the global workforce with the skills needed to future-proof their careers against the expected displacement of millions of jobs and skills instability as a result of technological change. It is also designed to provide businesses and economies with the skilled labour needed to fulfil the millions of new roles that will be created by the Fourth Industrial Revolution, shifts in the global economy and industrial transitions towards sustainability.
“The best way to foster a more cohesive and inclusive society is to provide everybody with a decent job and income. Here in Davos, we are creating a public-private platform to give one billion people the skills they need in the age of the Fourth Industrial Revolution. The scale and urgency of this transformation calls for nothing short of a reskilling revolution,” said Klaus Schwab, Founder and Executive Chairman, World Economic Forum.
National and industry transformation
In order to effect such systems-wide change, Reskilling Revolution will serve as a platform for connecting and coordinating individual initiatives within specific countries, industries, organizations and schools. At the country-level, the Reskilling Revolution is supported by the governments of India, Oman, Pakistan, the Russian Federation and the United Arab Emirates, which will run Closing the Skills Gap National Accelerators. In addition, the governments of Denmark and Singapore have become learning network champions. During 2020, the number of accelerators will grow to 15, beginning with Bahrain and Brazil at the Annual Meeting 2020.
Additionally, new policy instruments, new forms of financing and new rapid delivery partnerships will join this effort, serving as examples. In the US, the Government has called on companies to commit to the retraining and upskilling of its own workforce through the Pledge to America’s Workers and to date, over 415 private-sector companies have pledged more than 14.5 million career-enhancement opportunities for American workers over the next five years. France’s Mon Compte Formation is the first-of-a-kind individual skills account with an integrated mobile application dedicated to vocational training and lifelong learning. Such combined efforts of the private sector and governments can catalyse better education, skills and jobs for supporting one billion people and serve as global exemplars.
To date, over 415 private-sector companies have pledged more than 14.5 million career-enhancement opportunities for American workers over the next five years. Initiatives like these show that these combined public-private efforts can and will achieve the one billion goal.
In the private sector, a number of companies are already taking coordinated action on workforce transformations through intra- and cross-industry collaborations involving business, trade unions and the training sector. These industry accelerators include: Advanced Manufacturing; Aerospace; Aviation, Travel and Tourism; Consumer; Financial Services; Media, Entertainment and Information; Mining and Metals; Oil and Gas; and Health and Healthcare. By the end of 2020, 15 industries will be engaged.
Technological change, patterns of globalization and the green transition pose great risks to people’s livelihoods. An urgent investment in human capital is needed to revive pathways to social mobility and create a fairer world. By mobilizing industry leaders, government, international organizations, professional networking platforms, online and offline staffing firms and education and training providers, Reskilling Revolution aims to provide better jobs, education and skills to 1 billion people by 2030,” says Saadia Zahidi, Managing Director, New Economy and Society at the World Economic Forum.”
Founding partners, initiatives and coalitions to reach 250 million people
Together, founding partners’ initiatives and coalitions already signed up to Reskilling Revolution have the capability of reaching 250 million people worldwide. The Reskilling Revolution Platform will enable these coalitions and future business-led initiatives to create system-level change or to be scaled up through replication by other organizations. Founding business pledges include:
The Adecco Group aims to support 5 million workers through upskilling and reskilling globally by 2030. The Group’s General Assembly business will play a key role as a founding member of the Skills Consortium of online training and learning providers, as part of the Reskilling Revolution initiative. The Adecco Group Foundation will contribute as founding partner to the HR Valley initiative – a hub of human capital management learning.
Coursera Inc. will be a data partner and a founding member of the Skills Consortium of online training and learning providers hosted by Reskilling Revolution. It has committed to upskilling 10 million global workers by 2030 in high-demand domains of Data Science, Technology, Business and Soft skills.
Infosys is expanding computer science and maker education to K-12 students and teachers across the US, especially among under-represented communities, and will become a founding member of a Skills Consortium of online training and learning providers hosted by Reskilling Revolution.
LinkedIn will be a data partner for the Reskilling Revolution initiative.
ManpowerGroup’s MyPath is enabling hundreds of thousands of people to access high-growth roles by providing accelerated upskilling, on-the-job training and certification, transforming the role of the recruiter to become talent agents, experts in assessment, data and coaching so workers receive the guidance they need for future roles.
PwC and its New World. New Skills. programme will deploy skills to support public-private collaborations through the Reskilling Revolution. It will also help clients prepare their workforces for the digital world, upskill each of its 276,000 people and scale up its community programmes, particularly in areas where there is an acute need.
Salesforce has committed to help train 1 million people with relevant skills and reach 10 million active users on Trailhead, Salesforce’s free online learning platform, within the next five years. Through workforce development initiatives including Trailhead Military, FutureForce and the Pathfinder Program, all powered by Trailhead, anyone can skill-up to learn in-demand skills and earn credentials to land a top job in tech.
International and civil society organizations are also leveraging the Reskilling Revolution Platform to drive change and build new coalitions. This will include the United Nations Children’s Fund (UNICEF) and Generation Unlimited, a global multisector partnership created to meet the urgent need for expanded education, skill development and employment opportunities for young people aged 10-24. The Education Commission, chaired by Gordon Brown, is committing to support the Reskilling Revolution through teacher workforce, schools and education finance transformation. The NGO iamtheCODE will aim to enable ten million women and girls as coders worldwide by 2030.
The United Arab Emirates will provide seed funding to launch the Reskilling Revolution platform.
Reskilling to jobs of the future
Technological change, industry transitions and globalization are impacting jobs and the skills required within those jobs. The OECD estimates that 1.1 billion jobs are liable to be radically transformed by technology in the next decade. The World Economic Forum predicts an overall net positive between job growth and decline but also finds that skills instability with all jobs will mean that nearly half of core skills are set to change by 2022 alone. Additionally, if current trends continue, the outdated content of education will further exacerbate the skills mismatch in the future. However, with increased predictive power, it has also become easier and faster to understand the in-demand skill and jobs of tomorrow and plan human capital development accordingly.
A World Economic Forum report also released today, Jobs of Tomorrow: Mapping Opportunity in the New Economy, worked with LinkedIn, Coursera Inc. and Burning Glass Technologies to map seven emerging professional clusters and 96 fastest-growing jobs within them. They reflect that both “digital” and “human” factors are driving growth in the professions of tomorrow. The adoption of new technologies is giving rise to greater demand for green economy jobs, roles at the forefront of the data and AI economy and new roles in engineering, cloud computing and product development. On the other hand, emerging professions also reflect the continuing importance of human interaction in the new economy, giving rise to greater demand for care-economy jobs; roles in marketing, sales and content production; as well as roles at the forefront of people and culture. The growth and absolute scale of these opportunities will be determined by the choices and investments made by governments today.
What the leaders are saying
“The United States is honoured to be a leading example of when the public and private sector comes together to prioritize workers and ensure them, their families and our respective economies are prepared for the changing nature of work and the workplace. 1 billion lives will be changed by 2030 through this Reskilling Revolution and the Trump Administration, through its Pledge to America’s Workers, is excited to continue to serve as a catalyst for private-sector engagement worldwide,” said Ivanka Trump, Assistant and Adviser to the President of the United States.
“The largest generation of young people in history is about to inherit the world – and they’re facing a global learning and skills crisis. The private sector must work with governments to help close the skills gap and give young people the ladders of opportunity they need to reach their potential. The possibilities are endless and the need is urgent”, said Henrietta H. Fore, Executive Director, United Nations Children’s Fund, UNICEF
“Learning ecosystems must be updated to ensure that we are addressing the short-term challenge of skills mismatch in the current workforce and preventing the long-term challenge of future unemployment among the next generation of talent. That is why the United Arab Emirates is proud to make human capital investment a key national priority, and is delighted to be, not only a member of the Closing the Skills Gap Accelerator Network, but also a founding member of the Reskilling Revolution initiative through both public-private partnerships to close national skills gaps and through seed funding for the global platform,” said Ahmad Belhoul, Minister of State for Higher Education and Advanced Skills, United Arab Emirates
“Upskilling is one of the most urgent challenges of our time and to solve it, we need to act together, now. As a major employer in 157 countries around the world, PwC has the scale and experience to make a measurable impact. We have a responsibility to help our people, clients and communities prepare for the future but we can’t succeed on our own. As part of our upskilling efforts, we’re asking everyone to join the World Economic Forum’s Reskilling Revolution platform and us so that we can prepare everyone, everywhere for the digital world”, said Robert E. Moritz, Global Chairman, PwC.
“With new technologies and trends impacting the world of work, companies are facing genuine challenges in recruiting people with the skillsets needed to capture the opportunities ahead. Therefore, in order to equip individuals to successfully participate in the world of work and enable businesses to find the skills they need to be competitive, we must focus on upskilling and reskilling. We fully support a ‘reskilling revolution’ and pledge to upskill and reskill 5 million people globally by 2030”, said Alain Dehaze, Chief Executive Officer, The Adecco Group.
“Our research shows us that jobs emerging in the global economy span a wide range of professions and skills. They will provide opportunities for workers of all backgrounds and educational levels. But for all of the opportunities that the new economy will bring, the stark skills and gender gaps that exist today – especially in these fast-growing and emerging jobs – must be addressed now if we want to ensure that the Fourth Industrial Revolution is an equitable one”, said Allen Blue, Co-Founder and Vice-President, Products, LinkedIn
“I wish that more people, companies and societies would start to invest in skills, reskilling and lifelong learning. Because if we don’t, it will not only hamper businesses and the foundation for our economies. It could undermine our entire societal contract”, said Peter Hummelgaard, Minister for Employment of Denmark
“The global nature of the skills crisis requires institutions to collaborate at an unprecedented scale in order to provide lifelong access to high-quality learning. As part of this coalition, we are excited to work with governments, industry accelerators, and universities around the world to equip the global workforce with the skills needed to advance careers, boost employability and stimulate inclusive economic growth,” said Jeff Maggioncalda, Chief Executive Officer, Coursera Inc.
“We are excited to partner with the World Economic Forum through the Reskilling Revolution initiative. As availability of digital talent continues to be one of the greatest barriers for enterprises to transform, organizations need to nurture a culture that enables talent – across disciplines and skills – to benefit from a continuum of lifelong learning that prepares them for the future of work. We are keen to help drive the transformation”, said Salil Parekh, Chief Executive Officer and Managing Director, Infosys.
“We have to move towards a Society of Skills, placing lifelong learning, upskilling and reskilling at the core of people, businesses and governments’ interests”, said Muriel Penicaud, Minister of Labour of France
“More than half of companies around the world cannot find the skills they are looking for – almost double what it was a decade ago. And the need for a Skills Revolution – which we predicted four years ago – continues to be the defining challenge of our time. Organizations have to act differently. Creating shareholder value can only be done in conjunction with taking care of employees, customers and communities. And that includes the responsibility to help people learn new skills, adapt for future jobs and to become creators of talent”, said Jonas Prising, Chairman and Chief Executive Officer, ManpowerGroup
“We need to make sure the Fourth Industrial Revolution brings everyone along with the education and skills to succeed,” said Marc Benioff, Chairman and Co-Chief Executive Officer of Salesforce. “That’s why as part of the Reskilling Revolution, Salesforce will help train 1 million people with resume-worthy skills and reach 10 million active users on Trailhead, our free online learning platform, within the next five years.” said Marc Benioff, Chairman and Co-Chief Executive Officer Salesforce
Key Opportunities for Uzbekistan’s Development
The World Bank has released its new Systematic Country Diagnostic (SCD) report for Uzbekistan, which analyzes key challenges and opportunities for the country’s development. The SCD contains policy recommendations for removing barriers to private sector growth, reducing the state’s role in the economy, focusing on people and their human capital, and transitioning to a green economy. The report provides the foundation for selecting priority areas for the World Bank Group’s cooperation with the Government of Uzbekistan throughout the 2022-2026 period.
In April 2022, the World Bank Group completed work on its second Systematic Country Diagnostic for Uzbekistan, following the first one that was produced in 2016. This flagship report is produced for a partner country every five years to identify key challenges and opportunities to ending poverty and boosting shared prosperity.
Since 2017, the Government of Uzbekistan has implemented transformative reforms to liberalize the economy and business environment, improve the well-being of citizens, and steer the state towards meeting people’s needs, most of which are analyzed in the SCD.
Planning the next generation of reforms, Uzbekistan has set ambitious goals of becoming an upper-middle-income country by 2030 and reducing poverty by half by 2026. Achieving these goals requires much higher economic growth than the current level through faster job creation and reduced economic exclusion— especially among youth, women, and people with disabilities.
“The World Bank’s SCD is a rigorous analysis of the key opportunities and challenges we face as a country. As the report notes, the analysis was prepared under a new era of openness, data transparency, and collaboration between the World Bank, the Government, and other development partners. The priority areas it identifies are fully aligned with Uzbekistan’s development strategy for 2022-2026,” noted Djamshid Kuchkarov, Deputy Prime Minister and Minister of Economic Development and Poverty Reduction of Uzbekistan.
The new SCD sets out four development pathways that can help Uzbekistan achieve these ambitious goals: 1) encouraging more private sector growth and job creation; 2) reforming the role of the state in the economy; 3) investing in people-focused policies and human capital; and 4) building an environmentally sustainable and resilient future.
The report also outlines thirteen priority policy areas that emerged from the analysis in the SCD. Some of the key policy priorities recommended by the World Bank focus on the following areas:
Encouraging private sector growth. The authorities should improve the allocation of land, labor, and finance, as well as the legal and regulatory framework for competition across the private sector; adopt trade and investment policies that favor the private sector’s global integration; establish strong private sector support services; accelerate agricultural market reforms that, among other things, will end the state’s interference in the agricultural market.
Strengthening the market enabling role of the state. The authorities should accelerate the state’s transition from producer to market enabler with fewer and better performing state-owned enterprises; address infrastructure gaps; reduce corruption and improve governance across the state institutions; decentralize government functions; increase public accountability.
Improving human capital. The authorities should address gaps in education quality; improve access to early childhood and tertiary education; strengthen the performance and affordability of the health system; improve water and sanitation services across the country; improve poverty measurement, policy, and targeting; develop labor market policies encouraging the inclusion of vulnerable groups; increase the coverage and adequacy of social safety nets for those in need.
Building an environmentally sustainable and resilient future for Uzbekistan. The authorities should manage natural resources more effectively, including water and land, more efficiently; take measures to decarbonize and modernize the economy, including the energy sector; improve natural disaster management.
“We are grateful to the Government for their close collaboration and for making available all necessary data needed to prepare the SCD. The report serves as an important foundation for the World Bank Group’s new Country Partnership Framework (CPF) for Uzbekistan, which will outline our financial and analytical support to Uzbekistan in implementing crucial reforms in the next five years,” said Marco Mantovanelli, World Bank Country Manager for Uzbekistan.
New Resilience Consortium to Forge Strategies for Recovery and Growth in Face of Multiple Crises
COVID-19, climate change and, most recently, the war in Ukraine and the ensuing refugee crisis, are the latest reminders of the unprecedented capacity of external shocks to disrupt economies and societies. In a world of continuous, overlapping disruptions, organizations need to build and manage resilience to secure a sustainable, inclusive future for all.
Resilience for Sustainable, Inclusive Growth, a white paper published today, outlines seven key drivers of resilience, which have fundamental, cross-cutting business, economic and societal implications: climate, food, and energy; people, education and organizations; healthcare; sustainable economic development; trade and the supply chain; digital trust and inclusion; and finance and risk.
The United Nations, the World Economic Forum, McKinsey Global Institute, the International Monetary Fund and other leading organizations estimate that a significant share of annual GDP growth will depend on the degree to which organizations and societies develop resilience. Growth differentials of between 1% and 5% globally can be expected depending on how leaders respond to the many challenges, including climate change, the energy transition, supply-chain disruptions, healthcare availability, and income, gender and racial inequalities.
The World Economic Forum, in collaboration with McKinsey & Company, is launching the Resilience Consortium, a new public-private leadership effort to drive global resilience. The consortium is bringing together leaders from the public and private sectors who are committed to advancing resilience globally – across regions, economies and industries. The aim is to develop a shared, comprehensive view of resilience and its drivers to help policy-makers and business leaders recognize the opportunities and lay the foundations of sustainable and inclusive, long-term global growth.
Building on existing Forum efforts on these resilience drivers, the Resilience Consortium will work to unlock synergies, accelerate collective action and enable a more systemic approach to investing in resilient economies and societies. The consortium will be led by a Steering Committee, comprising a dedicated group of public and private sector leaders across industries and geographies.
Experience of past crises has taught us five key lessons: managing disruptions defines sustainable growth more than managing continuity; crises evolve across categories and do not have single-point solutions; networks hide interdependencies, accelerating crises (as well as recovery); inadequate responses and unpreparedness can double the damage of crises; and crises disproportionately affect the most vulnerable in a society.
Børge Brende, President of the World Economic Forum,said: “Building greater resilience has become a defining mandate for this generation. The war in Ukraine is having a devastating impact not only on the people of the region but also knock-on effects on global commodity prices that may cause political and humanitarian crises in other parts of the world. There is an urgent need for more collective action and coordination by the public and private sectors to mitigate risks and sustain growth against disruptive shocks, especially among the most vulnerable populations. Policy decisions and financial commitments made today will determine the future course of the planet, economies and societies. Now is the time for action.”
Bob Sternfels, Global Managing Partner of McKinsey & Company, said: “Our research shows two things: 1) failure to invest in resilience is costly and far exceeds the cost of weather proofing ahead of disruptions; and 2) resilient organizations outperform non-resilients before, during and after crisis. We are convinced that public and private sector organizations must take a new approach developing resilience that goes beyond defensive stances. In light of today’s increased economic volatility, fundamental environmental and societal challenges, and continuous disruptions, the time is now to build resilience as a strategic muscle. The Resilience Consortium will work towards a common resilience framework for public and private-sector organizations that can help organizations drive sustainable, inclusive growth.”
Global economic growth downgraded due to spillover from Ukraine war
The global economy is expected to grow by only 3.1 per cent this year, down from the 4.0 per cent projected in January, largely derailed by the war in Ukraine, according to the UN’s latest World Economic Situation and Prospects (WESP) report, launched on Wednesday.
The mid-year forecast reveals how the conflict has upended the fragile economic recovery from the COVID-19 pandemic, sparking a humanitarian crisis in Europe, surging food and commodity prices, and exacerbating inflationary pressures.
Global inflation is also set to reach 6.7 per cent this year, or twice the average of 2.9 per cent during the period from 2010 to 2020, with sharp rises in food and energy prices.
Quick action crucial: Guterres
“The war in Ukraine – in all its dimensions — is setting in motion a crisis that is also devastating global energy markets, disrupting financial systems and exacerbating extreme vulnerabilities for the developing world,” said UN Secretary-General António Guterres.
“We need quick and decisive action to ensure a steady flow of food and energy in open markets, by lifting export restrictions, allocating surpluses and reserves to those who need them, and addressing food price increases to calm market volatility,” he added.
The downgrade in growth prospects includes the world’s largest economies – the United States, China, and the European Union – as well as the majority of other developed and developing economies.
Higher energy and food prices are particularly affecting developing economies that import commodities, and the outlook is compounded by worsening food insecurity, especially in Africa.
Energy shock in Europe
The WESP report, published by the UN’s Department of Economic and Social Affairs (DESA), examines how the spillover effects of the war in Ukraine are impacting different regions.
Russia’s invasion began on 24 February, and in addition to the tragic loss of life and the unfolding humanitarian crisis – with more than six million refugees alone – it has also exacted heavy tolls on the economies of both countries.
Neighbouring economies in Central Asia and Europe, including the European Union (EU), are also affected.
The rise in energy prices has dealt a shock to the EU, which imported nearly 57.5 per cent of its total energy consumption in 2020. Economic growth is forecasted to grow by only 2.7 per cent, instead of the 3.9 per cent projected in January.
Nearly a quarter of Europe’s energy consumption in 2020 came from oil and natural gas imported from Russia, and a sudden halt in flows is likely to lead to increased energy prices and inflationary pressures.
EU member states from Eastern Europe and the Baltic region are severely impacted as they are already experiencing inflation rates well above the EU average, the report said.
In the world’s developing and Least Developed Countries (LDCs), high inflation is reducing the real income of households.
This is especially the case in developing countries, where poverty is more prevalent and wage growth remains constrained, while fiscal support to lessen the impact of higher oil and food prices is limited.
Rising food and energy costs are also having knock-on effects on the rest of the economy which is presenting a challenge to inclusive post-pandemic recovery as low-income households are disproportionately affected.
Additionally, “monetary tightening” by the Federal Reserve in the United States, the country’s central banking authority, is also set to raise borrowing costs and worsen financing gaps in developing nations, including the world’s LDCs.
“The developing countries will need to brace for the impact of the aggressive monetary tightening by the Fed and put in place appropriate macroprudential measures to stem sudden outflows and stimulate productive investments,” said Hamid Rashid, DESA’s Chief of the Global Economic Monitoring Branch, and the lead author of the report.
Climate actions challenged
The war is also unfolding at a time when global carbon dioxide (CO2) emissions are at a record high, and rising energy prices will also impact global efforts to address climate change. As countries are looking to expand energy supplies amid high oil and gas prices, the report predicts that fossil fuel production is likely to increase in the short term.
Meanwhile, high prices of nickel and other metals may adversely affect the production of electric vehicles, while rising food prices may limit the use of biofuels.
“However, countries can also address their energy and food security concerns – brought to the fore due to the crisis – by accelerating the adoption of renewables and increasing efficiencies, thus strengthening the fight against climate change,” said Shantanu Mukherjee, DESA’s Director of Economic Policy and Analysis.
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