Upskilling and reskilling initiatives are expected to take on greater importance for employers amid a slowing hiring market and growing demand for learning.
The labor market rebounded slightly in August according to the latest data from the Department of Labor, but talent acquisition remains a challenge in this slowing hiring market. The U.S. economy added 142,000 jobs in August – a marked improvement over July’s downwardly revised total of 89,000 – but still saw the weakest August jobs report since 2017. Meanwhile, the number of job openings fell to 7.67 million in July – the lowest level since January 2021 – according to JOLTS data.
This stagnation in hiring is placing talent acquisition and retention near the top of the list of biggest concerns for business leaders. According to a pulse survey fielded by RGP in June, one in four financial decision makers (26%) say that acquiring and retaining talent is their top concern for the second half of 2024 – second only to the integration of more digital strategies, including AI and automation (30%). Nearly half (45%) of financial decision makers say their organization plans to increase investment in resources to reskill or upskill current employees this year.
It’s becoming increasingly clear that upskilling and reskilling are the path forward. The tight labor market is making it more difficult for employers to fill skills gaps, a challenge that is being accelerated by rapidly changing skill needs.
