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Reskilling Is the Key

, by Alexia Delfino - assistant professor presso il Dipartimento di economia
According to a survey by the World Economic Forum around the world, in 2027 42% of jobs will involve automation. The competitiveness of workers will therefore increasingly depend on training that brings them up to date with the new needs of the market. For this to happen, however, they need to grasp its usefulness

In an era defined by rapid technological advancements and evolving job landscapes, reskilling has emerged as a crucial strategy for individuals to adapt and thrive. Across countries, the need to reskill workers has become increasingly urgent as traditional job roles evolve, new industries emerge, and automation reshapes the workforce.

Reskilling refers to the process of learning new skills to meet the demands of changing industries and job roles. Reskilling aims at becoming equipped with the competencies needed to remain relevant and competitive in the workforce of tomorrow, enabling transitions from occupations in decline to growing ones. One of the primary drivers of the reskilling imperative is the rise of automation and artificial intelligence. While these technologies bring unprecedented opportunities for efficiency and innovation, they also disrupt traditional job roles, making some skills obsolete while creating demand for new ones. According to respondents to the "Future of Jobs" survey by the World Economic Forum (2023), 42% of work tasks will be automated by 2027. The COVID-19 pandemic has further underscored the importance of reskilling. As industries adapt to remote work and new ways of operating, workers must be equipped with the digital skills and resilience needed to navigate these changes successfully.

All over the world governments, businesses, educational institutions, and non-profit organizations are actively investing in reskilling programs. For example, in the United States, the "TechHire" initiative aimed to train workers for high-demand technology jobs through partnerships between employers, training providers, and local governments. In Europe, the 2020 "European Skills Agenda" is a five-year plan to help individuals and businesses develop more and better skills for the jobs of the future. In Singapore, the SkillsFuture initiative offers a wide range of training courses and subsidies to help individuals develop skills relevant to future job roles. In Australia, tens of thousands of fee-free technical and further education training slots are offered to priority groups for courses in industry sectors with skill shortages or growth areas. These examples illustrate the diverse range of reskilling programs and partnerships that are meant to help individuals adapt to the changing demands of the global economy.

However, this burgeoning array of reskilling initiatives may not be sufficient to foster widespread participation. What if workers are unwilling to be reskilled? Eurostat surveys from 2022 reveal that merely one in ten adults in the European Union have participated in job-related training, formal or informal, in the last month. Workers commonly mention time constraints, financial limitations, or lack of access to educational resources as the main barriers from pursuing training. There may be other less observable, but equally important obstacles to reskilling. Workers may not be aware of what careers are in-demand and how reskilling may help them reap these opportunities. Moreover, cultural and psychological attitudes towards learning can vary widely, influencing people's willingness to invest in acquiring new skills. In settings where program quality varies, such as Italy, pessimistic expectations about the returns to training may further discourage engagement.

In an ongoing project in Italy involving more than 1000 unemployed jobseekers, Garnero, Inferrera, Leonardi, Sadun and I find that limited information about program effectiveness and/or labor market returns from reskilling substantially contribute to workers' reluctance to be reskilled. This underscores the necessity for reskilling initiatives to be complemented by tailored information campaigns and individual counselling to increase potential beneficiaries' awareness regarding the benefits of reskilling and the effectiveness of different programs. More broadly, our project also highlights the need for policy makers and training providers to get to know their potential participants better, and grasp what preferences, beliefs and perceptions may stop them from embracing reskilling as a pathway to success in an ever-changing world.