Having attended the UK’s International Impact – Policy Development Workshop at Wilton Park this month, the discussions reinforced that skills-led growth is the essential approach to driving sustainable economic progress. As industries undergo rapid transformation driven by artificial intelligence, green technologies and the global push for sustainability, the skills needed by individuals, organisations and nations are also changing at an accelerating pace.

This is not a distant, future challenge. It’s happening now. And it’s exposing a stark reality: too many workforces are unprepared for the change already underway.

Skills as the foundation for workforce resilience

The key to workforce resilience lies in one essential factor: the ability to adapt through continuous skills development. As industries transform and new challenges arise, it is not enough for employees to simply have the skills needed for today’s jobs. They must be equipped with the flexibility and adaptability to meet tomorrow’s needs.

However, several key issues must be addressed to build a truly resilient workforce:

• Skills gaps are widening: As industries transform, businesses are increasingly struggling to find employees with the skills needed to keep pace with change.
• Lifelong learning remains underdelivered: While it’s frequently discussed, the reality is that many employees, especially those in mid-career still lack access to the upskilling opportunities they need.
• Inclusion is still an aspiration: Despite progress, too many underrepresented groups remain excluded from high-growth sectors.
• Sustainability is often side-lined: While environmental sustainability is essential for the future, it is frequently treated as a secondary concern in workforce development strategies, rather than being integrated at the core.

Despite these challenges, there is huge potential, if we are prepared to rethink how we approach skills development.

The need for skills-led growth

Skills-led growth provides the framework for long-term economic stability. It ensures that employees are not only prepared for the changes ahead but are empowered to lead and shape these transformations. Rather than reacting to new technologies or shifting market needs, this approach enables a workforce that actively drives progress and innovation.

So, what is the approach to skills-led growth and how can it be implemented effectively?

• Skills strategies built with, not for industry.: The first step in a skills-led growth strategy is ensuring that workforce development is aligned with the future needs of industries. This means working closely with employers, education providers and governments to understand upcoming trends and identifying the skills that will be in demand in the future, ensuring that training and development efforts are targeted toward these key areas
• Learning that’s flexible, stackable and lifelong: At the core of skills-led growth is the principle of lifelong learning. The workforce must have access to ongoing opportunities to develop new skills throughout their careers. This could include micro-credentials, online courses, apprenticeships or any other form of education that helps individuals stay current and competitive.
• Inclusion is not optional: For skills-led growth to be effective, it must be inclusive. It is crucial to ensure that people from all backgrounds, whether economically disadvantaged, from underrepresented communities or in remote regions have access to the skills training and career advancement opportunities they need to succeed in high-growth industries. Diverse workforces are stronger workforces, driving better innovation, problem-solving, and overall success by bringing a wider range of perspectives and talents.
• Data-driven decision-making: Good labour market intelligence is essential to driving the right decisions in workforce development. By using data to understand trends, skills gaps and emerging needs, businesses, governments and education providers can ensure that their strategies are informed and effective, creating a workforce that meets both current and future demands.

The moment for bold thinking

This is a defining moment. The challenge is clear: we must build a workforce that is not just reactive, but proactive in shaping the future. The workforce of tomorrow is being built today, and it starts with a bold commitment to skills development, lifelong learning and inclusivity. The question now is how we respond to the challenge and take bold, decisive action to shape a resilient, sustainable future for all.