Preparing tomorrow’s workforce for the Fourth Industrial Revolution

Preparing tomorrow’s workforce for the Fourth Industrial Revolution

Preparing tomorrow’s workforce for the Fourth Industrial Revolution

For business: A framework for action

Today, business leaders say it can be difficult to find young people with the right skills needed to fill open roles. Moreover, by 2030, an estimated 1.8 billion youth worldwide will not have the skills or qualifications required to participate in the workforce. As the workplace changes due to the Fourth Industrial Revolution – especially with the rise of automation and artificial intelligence – there will need to be a shift in how young people are equipped with the necessary skills and know-how.

Preparing tomorrow’s workforce for the Fourth Industrial Revolution is a new report from Deloitte Global and the Global Business Coalition for Education outlining a framework for action for businesses in supporting the future of youth skills development and employment. The report argues that failing to adequately train the next generation of workers for the digitally-driven economy will lead to greater income inequality, increased unemployment, increased government expenditures, and more mass migrations.

The report also explains the four categories of skills young people must develop to be competitive for the Fourth Industrial Revolution and the specific actions businesses can take to contribute.

What is the Fourth Industrial Revolution?

First coined by Klaus Schwab, founder and executive chairman of the World Economic Forum, the Fourth Industrial Revolution (or 4IR)  is “a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres”; a progress defined by “velocity, scope, and systems impact” unlike ever seen before. 4IR will likely have far-reaching implications on almost every aspect of daily life, affecting how individuals interact with technology, and transforming where and how work is done. Yet, this exponential progress is only visible to—and accessed by— some. Its effects vary by country and culture, necessitating different approaches to address issues of automation and digitalization.

Skills Needed for the 4IR

Workforce Readiness

Foundational to individuals’ entry and ongoing success in the workplace, ranging from initial job search to maintaining continuous employment

Soft Skills

Personal attributes, social skills, and communication abilities that support interpersonal relationships and interactions with others

Technical Skills

Knowledge and capabilities to perform specialized tasks

Entrepreneurship

Knowledge and abilities that support success in creating and building a workplace opportunity or idea

How Business Can Address the Skills Gap

In order to achieve scalable results, businesses need to work with the broader ecosystem, implementing an integrated approach that leverages each group’s strengths and capabilities for impact. This includes coordinating opportunities, identifying gaps in training, finding opportunities for co-investment and sharing information about future talent needs.
Download the full report for specific actions business leaders can take.

Business has an opportunity — and a responsibility — to help governments prepare policies, rules and regulations that will benefit youth and strengthen our future workforce. Dialogue, advocacy, collaboration and influencing government are key means to drive results.
Download the full report for specific actions business leaders can take.

Reviewing and adapting current talent strategies will be important to future success, and developing best practices that promote inclusivity and innovation will be critical.
Download the full report for specific actions business leaders can take.

Employee training can no longer be a “check the box” activity, and businesses need to evaluate, invest and promote workforce training programs strategically so future talent needs and requirements can be met.
Download the full report for specific actions business leaders can take.

This report was published by Deloitte Global and the Global Business Coalition for Education.