When 39% of Skills Are Set to Change: Why Institutions, Industry, and Governments Must Act Together

By Indrajid Nurmukti

The world of work is undergoing a profound transformation. By 2030, nearly 39% of core skills are expected to change, driven by technological advances, economic transitions, and global challenges such as climate change.

Reference: https://www.linkedin.com/pulse/39-core-skills-change-2030-industry-must-act-the-world-bank-group-d5lue/

This is not just a statistic, it is a signal of systemic disruption.

The pressing question is no longer whether jobs will change. It is whether our institutions, businesses, and policymakers are ready to respond, together!.

A Growing Disconnect: Skills vs Systems

Across the globe, education and training systems are struggling to keep pace with the evolving needs of the labor market. While innovation cycles accelerate, formal education systems often remain slow to adapt.

Recent insights from the World Bank underline that industry is increasingly stepping in to co-design training and skills development, attempting to fill the gap left by traditional systems.

However, this shift also raises important concerns.

Without deliberate policy frameworks and coordination:

• informal workers may be excluded
• vulnerable groups may fall further behind
• inequalities may deepen

The risk is clear: a two-speed workforce, one that adapts, and one that is left behind.

A Shared Responsibility: Beyond Industry or Institutions Alone

The private sector plays a critical role. Companies are closest to emerging skill needs, whether in AI, digital transformation, or green transitions. They understand the competencies required to remain competitive and are already investing in targeted upskilling initiatives.

But companies cannot solve this alone. Skill development at scale requires:

• strong and coherent government policies
• long-term investment frameworks
• incentives to invest in human capital
• systems that ensure equitable access to opportunities

At the same time, social security institutions bring another essential dimension: protection, inclusion, and continuity during transitions.

What is needed is a coordinated ecosystem, where:

• companies define and invest in skills demand
• governments enable and regulate the system
• social security institutions ensure inclusiveness and resilience

The Missing Link: Investing in People as “Infrastructure”

In a rapidly changing economy, investment in human capital must be seen as essential infrastructure, just like roads, energy, or digital networks.

This means:

• companies treating workforce development as a strategic investment, not a cost
• governments creating enabling policies, including financing mechanisms for reskilling
• institutions ensuring that support reaches all workers, including those in non-standard employment

Without this alignment, skill development efforts will remain fragmented and insufficient.

The Role of ISSA: Enabling Coordination and Inclusion

The International Social Security Association (ISSA) is uniquely positioned to support this transformation.

With its global network and technical expertise, ISSA can help connect the dots between policy, practice, and inclusion.

Promoting Evidence-Based Policy

ISSA can support members in understanding emerging skill demands, labor market transitions, and the impacts of digitalization, enabling more forward-looking policy design.

Facilitating Public–Private Collaboration

ISSA can serve as a platform to align industry-driven initiatives with public policy objectives, promoting inclusive access and reducing fragmentation.

Integrating Skills into Social Protection Systems

By supporting approaches such as linking benefits to training, promoting lifelong learning mechanisms, and sharing international good practices, ISSA can help modernize social protection systems.

Supporting Inclusive Transitions

ISSA can help ensure that reskilling and upskilling efforts reach vulnerable populations, supporting just transitions and preventing widening inequalities.

From Fragmentation to Alignment

The challenge ahead is not just about creating more training programs. It is about aligning systems that have traditionally operated in silos.

• Companies invest in skills, but often for their immediate needs
• Governments regulate, but may lag behind market realities
• Social security institutions protect, but are not always integrated into skills strategies

The future requires these actors to move in the same direction.

Conclusion: A Collective Call to Act

The transformation of skills is already underway.

The private sector is moving. Workers are adapting. Governments are under pressure (often with confusedness and using the wrong maps).

But without coordination, these efforts risk falling short.

The real opportunity lies in building a shared approach:

• where companies invest in people as a strategic priority
• where governments create the conditions for large-scale human capital development
• where social security institutions ensure that no one is left behind

Only through this collective effort can we turn skill disruption into inclusive growth and long-term resilience.