Putting Skills First: Opportunities for Building Efficient and Equitable Labour Markets

The report argues that shifting from traditional proxies like degrees and job history to a skills-first approach can resolve critical talent shortages and increase inclusivity. It identifies five key intervention areas: rethinking academic requirements, using innovative skills assessments, reducing reliance on personal networks, preparing for the digital transition, and addressing the green transition. The document showcases 13 "Lighthouses"—case studies from organisations such as IBM, PwC, and the National University of Singapore—that demonstrate the scalability and impact of skills-based strategies. Key success factors identified include executive sponsorship, alignment with business needs, and the use of technology for scale.

• Global labour markets are facing severe shortages, with 60% of businesses stating that local skills gaps are the primary barrier to business transformation. Only 39% of businesses maintain a positive outlook for talent availability over the next five years.
• There is a significant disconnect between formal qualifications and job requirements; 46% of workers report that their formal qualifications are not relevant to their current roles, yet only 6% of global businesses believe removing degree requirements would improve talent availability.
• Reliance on personal networks creates a "network gap" that hinders merit-based advancement, with 51% of workers believing they have missed opportunities because they do not know the right people. This is most prevalent in Financial Services, IT, and Retail.
• The digital transition is driving a shift in core skills, with 44% of worker skills expected to change in five years. AI and big data have jumped 12 places in strategic importance for businesses since 2016, and there is a global shortage of nearly 4 million Cybersecurity Professionals.
• While only 16% of companies currently view green skills as important, 42% expect them to grow in importance over the next five years. Demand for green skills is currently outpacing supply, with job postings requiring green skills growing at a median rate of 22.4% between 2022 and 2023.
• Skills-first initiatives can significantly improve hiring efficiency and diversity. For example, PwC UK reduced mean hiring time by 45% through skills-first practices and increased the hiring of women by 20% and non-finance degree holders by 17% in its Deals practices.
• Successful implementation of skills-first strategies requires a combination of executive sponsorship, alignment with business goals, effective change management, data-driven iteration, and the use of technology to scale.

APA

World Economic Forum (2024). Putting Skills First: Opportunities for Building Efficient and Equitable Labour Markets. https://www3.weforum.org/docs/WEF_Putting_Skills_First_2024.pdf

Chicago

World Economic Forum. Putting Skills First: Opportunities for Building Efficient and Equitable Labour Markets. 2024. https://www3.weforum.org/docs/WEF_Putting_Skills_First_2024.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Putting Skills First: Opportunities for Building Efficient and Equitable Labour Markets |date=January 2024 |url=https://www3.weforum.org/docs/WEF_Putting_Skills_First_2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2024putting, author = {{World Economic Forum}}, title = {{Putting Skills First: Opportunities for Building Efficient and Equitable Labour Markets}}, institution = {World Economic Forum}, year = {2024}, month = jan, url = {https://www3.weforum.org/docs/WEF_Putting_Skills_First_2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }