Governments need to take lead in creating jobs to 'unleash the skills economy' in post-COVID-19 world
Skills-based economies need governments to pitch in as businesses still face hurdles
Dubai: Governments could be leading the way in creating new jobs as they move towards digital economies in a post-Covid world. The ‘profound’ changes that businesses are going through as well as those in work patterns makes it more likely the governments will hold the baton on adding or creating jobs.
This would empower governments everywhere to ‘unleash the skills economy’, according to a report brought out by the World Government Summit Organization and the consultancy PwC’s Middle East operations. “Once the current skills gaps are closed, increased productivity will add at least $6.5 trillion to the global economy by 2030 – with more benefits expected as skilled workforce continues to innovate further,” the report notes.
The challenges in the interim remain formidable, though. For one, there was the loss of millions of jobs and the 8.8 per cent of total working hours’ erased around the world because of COVID-19 created changes. Not just that, “Through dual shifts – and towards a greener and more digital economy – estimates suggest that around 30 per cent of jobs are at significant risk of automation and this risk may be much higher in some countries."
“The pandemic has brought about profound changes, whose effects are still evident in the global economy, as well as in the patterns and nature of work and concepts of creating economic value,” said Mohamed Yousef Al Sharhan, Deputy Managing Director of the World Government Summit Organization. “These effects have changed our perception of jobs and their role in securing supply chains and achieving food, health and technical security in societies.”
8.8%
What the skills economy is about
This is about ensuring ‘people’s talents are used alongside technology to achieve more sustainable prosperity’, according to the report. “Skills must also be linked to good job opportunities through integrating skills development into broader development strategies (such as industrial development, local economic development, youth employment).” It adds.
"Countries that are quicker to develop their 'skills economy', one where people and technology complement each other to innovate, will have the competitive edge and will be able to create a stronger chance of achieving inclusive and sustainable development," said Randa Bahsoun, PwC M.E.'s Government and Public Sector Partner and Labor, Employment and Skills Leader. "Uniting governments behind skill-centric visions for the economy and embracing new ways of governing, whilst challenging, is certainly achievable."
Jobs and opportunities created by the green and digital twin transitions will require new skills, with people needing to adapt to working alongside digital technologies