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# 🛠️ Skills and Workforce #59
- URL: https://newsletters.qs.com/skills-and-workforce-59/
- Published: 2025-12-22T12:30:38.000Z
- Updated: 2025-12-22T12:30:37.000Z
- Description: QS Skills newsletter explores global labor trends, reskilling initiatives, and workforce gaps across impact sectors. Dive into the latest insights on Green Skills, Advanced Manufacturing, AI and Digital, and Health Skills.
- Author: QS
- Tags: Skills & Workforce

📊

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**Hello 👋**

Global labor markets in 2025 show disruption and adaptation. AI-driven restructuring cut over [122,000 tech jobs](https://timesofindia.indiatimes.com/technology/tech-news/amazon-microsoft-and-8-other-biggest-global-tech-job-cuts-of-2025/articleshow/125887776.cms?ref=newsletters.qs.com), 75% of employers report [talent shortages](https://go.manpowergroup.com/talent-shortage?ref=newsletters.qs.com), and OECD labor force participation hit [74.1%](https://www.oecd.org/en/data/insights/statistical-releases/2025/10/labour-market-situation-updated-october-2025.html?ref=newsletters.qs.com). Automation, economic fragmentation, and geopolitical pressures intensify [workforce precarity](https://news.un.org/en/story/2025/12/1166491?ref=newsletters.qs.com), particularly in developing and trade-dependent economies.

Green skills expand rapidly. The EU invested $117B in a “[Union of Skills](https://www.europarl.europa.eu/topics/en/article/20250616STO28968/clean-industrial-deal-supporting-eu-industry-s-transformation?ref=newsletters.qs.com),” the ILO targets [10M industrial workers](https://www.ilo.org/resource/news/ilo-promotes-green-skills-empower-sustainable-development-china?ref=newsletters.qs.com) for reskilling by 2030, and global demand for climate-aligned [talent outpaces supply](https://www.researchandmarkets.com/reports/5955204/the-green-skills-gap-forecasts-key-workplace?srsltid=AfmBOoonddisk2JjNRLtwExX3jdV%5Font8SXUDSxCmJLqJtwwx59jNX1x&ref=newsletters.qs.com). The UK’s [Clean Energy Jobs Plan](https://assets.publishing.service.gov.uk/media/68f762b324fc2bb7eed11a45/clean-energy-jobs-plan.pdf?ref=newsletters.qs.com) aims to double renewable employment by 2030\. Advanced manufacturing faces [critical gaps](https://manufacturing-today.com/news/bridging-the-labor-gap-in-us-manufacturing/?ref=newsletters.qs.com), including over [1M semiconductor roles](https://www.deloitte.com/us/en/Industries/tmt/articles/global-semiconductor-talent-shortage.html?ref=newsletters.qs.com), with [Hitachi](https://www.hitachi.com/en-us/press/hitachi-accelerates-growth-with-major-us-investments-in-advanced-manufacturing-electrification-and-workforce-development/?ref=newsletters.qs.com) and [UK](https://www.gov.uk/government/news/making-the-uk-the-best-place-to-do-business-modern-industrial-strategy-set-to-deepen-global-collaboration?ref=newsletters.qs.com) industrial investments addressing shortages.

AI and digital skills scale globally. [Microsoft](https://www.geekwire.com/2025/as-ai-reshapes-its-workforce-microsoft-commits-4-billion-to-help-others-adapt/?ref=newsletters.qs.com), [Saudi Arabia](https://www.arabnews.com/node/2622098/saudi-arabia?ref=newsletters.qs.com), and the [EU](https://dig.watch/updates/eu-to-invest-e1-3-billion-in-ai-and-digital-skills?ref=newsletters.qs.com) train millions in AI and digital tools, while healthcare programs in [Queensland](https://statements.qld.gov.au/statements/100542?ref=newsletters.qs.com), [Europe](https://www.euronews.com/health/2025/09/22/europes-reliance-on-foreign-health-workers-is-growing-who-report-finds-this-is-why-it-matt?ref=newsletters.qs.com), and the [US](https://www.cms.gov/priorities/rural-health-transformation-rht-program/overview?ref=newsletters.qs.com) strengthen [workforce capacity](https://www.worldbank.org/en/news/press-release/2025/12/06/national-health-compacts-reforms-expand-affordable-care-create-jobs-boost-economic-growth?ref=newsletters.qs.com), professional development, and service delivery.

Thanks for reading!

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## Global Labor Market Trends  

**🤖 AI Restructures the Global Tech Workforce.** Over [122,000 tech layoffs](https://timesofindia.indiatimes.com/technology/tech-news/amazon-microsoft-and-8-other-biggest-global-tech-job-cuts-of-2025/articleshow/125887776.cms?ref=newsletters.qs.com) across 250+ companies mark a structural shift, not cyclical cuts. Firms including Intel and Salesforce explicitly cite AI-centric business models, signaling permanent changes in skill demand, job design, and white-collar employment globally.

**🧩 Global Talent Shortage Hits Near-Record Levels.** Seventy-five percent of employers worldwide report [difficulty filling roles](https://go.manpowergroup.com/talent-shortage?ref=newsletters.qs.com), the second-highest level on record. Persistent skill mismatches, digital transformation, and demographic pressures constrain hiring, slow productivity growth, and intensify competition for skilled labor across regions.

**📊 OECD Labor Force Participation Reaches Record High.** Labor force participation across OECD countries hits a [historic 74.1%](https://www.oecd.org/en/data/insights/statistical-releases/2025/10/labour-market-situation-updated-october-2025.html?ref=newsletters.qs.com) in 2025\. Higher female participation, delayed retirements, and migration gains offset aging pressures, masking underlying skill shortages and uneven job quality across advanced economies.

**🌍 UN Warns of Job Risks From Global Economic Fragmentation.** The UN highlights rising [labor market risks](https://news.un.org/en/story/2025/12/1166491?ref=newsletters.qs.com) from slowing growth, trade fragmentation, and technological disruption. Vulnerable workers face increasing precarity as automation, climate shocks, and geopolitical tensions reshape employment prospects, particularly in developing and trade-dependent economies.

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## Green Skills  

🌍 **EU Establishes Union of Skills Under $117B Clean Industrial Deal.** The European Commission’s [Clean Industrial Deal](https://www.europarl.europa.eu/topics/en/article/20250616STO28968/clean-industrial-deal-supporting-eu-industry-s-transformation?ref=newsletters.qs.com) mobilizes over $117B to boost clean industries and create a ‘Union of Skills’ that invests in workers, develops skills, and expands quality jobs, reinforcing training and workforce adaptability for the low-carbon economy.

**💼 UK Launches Clean Energy Jobs Plan to Double Employment.** The UK’s [$84B Clean Energy Jobs Plan](https://assets.publishing.service.gov.uk/media/68f762b324fc2bb7eed11a45/clean-energy-jobs-plan.pdf?ref=newsletters.qs.com) aims to double clean energy employment by 2030, creating 400,000 new roles. The plan emphasizes workforce training, skills development, and reskilling programs to support a sustainable energy transition.

**📈 Green Skills Demand Continues to Outpace Supply Globally.** Demand for green skills grows significantly faster than workforce supply. Green job vacancies are projected to reach [241M](https://www.researchandmarkets.com/reports/5955204/the-green-skills-gap-forecasts-key-workplace?srsltid=AfmBOoonddisk2JjNRLtwExX3jdV%5Font8SXUDSxCmJLqJtwwx59jNX1x&ref=newsletters.qs.com) by 2030, while green skills adoption expands far more slowly than the pace of climate-driven job creation.

**🌱 ILO Promotes Reskilling of 10 Million Industrial Workers by 2030.** The ILO partners with China and other national stakeholders to scale green skills tools and training frameworks aimed at reskilling [10M industrial workers](https://www.ilo.org/resource/news/ilo-promotes-green-skills-empower-sustainable-development-china?ref=newsletters.qs.com) by 2030, ensuring workers can participate in sustainable and climate-aligned economic activity.

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## Advanced Manufacturing Skills  

**📊 Global Semiconductor Talent Shortage Intensifies**. The semiconductor sector requires more than [1M additional skilled workers](https://www.deloitte.com/us/en/Industries/tmt/articles/global-semiconductor-talent-shortage.html?ref=newsletters.qs.com) by 2030 to support expanding fabrication and manufacturing capacity. Talent shortages span core engineering, design, operations, and maintenance, underscoring urgent workforce development needs worldwide.

**🎯 UK Industrial Strategy Boosts Skills Investment Across Industries.** The UK’s Modern Industrial Strategy pledges [$1.6B annually for skills](https://www.gov.uk/government/news/making-the-uk-the-best-place-to-do-business-modern-industrial-strategy-set-to-deepen-global-collaboration?ref=newsletters.qs.com) by 2028‑29, funding apprenticeships and vocational training in advanced manufacturing, digital, and engineering, strengthening talent pipelines and competitiveness.

**🏭 Hitachi Invests in Smart Manufacturing, Electrification and Training.** Hitachi announces major US investments over [$1B in advanced manufacturing](https://www.hitachi.com/en-us/press/hitachi-accelerates-growth-with-major-us-investments-in-advanced-manufacturing-electrification-and-workforce-development/?ref=newsletters.qs.com), electrification, and workforce development, including digital factories, automation hubs, and expanded production facilities that create thousands of jobs and build high‑value manufacturing skills.

**⚙️ US Manufacturing Labor Gap Remains a Critical Challenge.** The US manufacturing sector requires over [3M new workers](https://manufacturing-today.com/news/bridging-the-labor-gap-in-us-manufacturing/?ref=newsletters.qs.com) by 2033\. If talent recruitment and retention challenges persist, an estimated 1.9M positions may go unfilled, intensifying skills and applicant gaps across production and technical roles.

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## AI & Digital Skills  

**🤖 Microsoft Commits $4B to Elevate Global AI Skills.** Microsoft launches its [$4B Elevate initiative](https://www.geekwire.com/2025/as-ai-reshapes-its-workforce-microsoft-commits-4-billion-to-help-others-adapt/?ref=newsletters.qs.com), the largest private investment in AI skills history, scaling training, certifications, and tools to help workers, employers, and communities adapt to AI‑driven workforce transformation.

**💻 UK Pledges $2.7B for AI and Digital Skills Nationwide.** The UK [invests $2.7B](https://aimagazine.com/articles/keir-starmers-2bn-pledge-how-the-uk-plans-to-advance-ai?ref=newsletters.qs.com) to expand AI infrastructure and digital skills training across sectors. Funding supports workforce development, data capacity expansion, and efforts to close talent gaps.

**💡 EU Invests $1.5B to Boost AI, Cybersecurity and Digital Skills.** The European Commission allocates [$1.5B for AI](https://dig.watch/updates/eu-to-invest-e1-3-billion-in-ai-and-digital-skills?ref=newsletters.qs.com), cybersecurity, and digital skills development through the Digital Europe Programme, strengthening workforce competencies and technological sovereignty.

**📱 Saudi Arabia Trains 1M Citizens in AI Skills.** Saudi Arabia’s SAMAI initiative exceeds its target by training over [1M citizens](https://www.arabnews.com/node/2622098/saudi-arabia?ref=newsletters.qs.com) in foundational AI knowledge and practical tools. The program spans diverse groups and strengthens national capacity for innovation, digital literacy, and future job roles.

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## Health Skills   

**⚠️ Europe Faces 950,000 Health Worker Shortage.** Europe’s health systems face a shortfall of [950,000 workers](https://www.euronews.com/health/2025/09/22/europes-reliance-on-foreign-health-workers-is-growing-who-report-finds-this-is-why-it-matt?ref=newsletters.qs.com). Reliance on foreign health professionals grows, and countries must urgently expand domestic workforce training and retention programs to meet increasing demand for healthcare services.

**🏥 Queensland Unveils $1.7B Health Workforce Growth Strategy.** Queensland launches a [Health Workforce Strategy](https://statements.qld.gov.au/statements/100542?ref=newsletters.qs.com) backed by $1.7B through 2032 to grow frontline doctors, nurses, midwives, and allied health staff. The plan expands training, recruitment, retention, and talent pipelines to address shortages and strengthen service delivery capacity.

**🩺 Global Coalition Commits to Health Workforce Expansion by 2030.** A worldwide coalition pledges to support 1.5B people with quality health services by 2030, prioritizing investment in [health workforce training](https://www.worldbank.org/en/news/press-release/2025/12/06/national-health-compacts-reforms-expand-affordable-care-create-jobs-boost-economic-growth?ref=newsletters.qs.com), professional development, and capacity building to strengthen care delivery and economic growth in low- and middle-income countries.

**💊 US Rural Health Transformation Program Expands Workforce Training.** The US CMS Rural Health Transformation Program invests in [training and upskilling healthcare](https://www.cms.gov/priorities/rural-health-transformation-rht-program/overview?ref=newsletters.qs.com) professionals in underserved communities. Programs include clinical skill development, telehealth training, and enhanced care models to improve access and workforce capacity.

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**Thank you for reading. Have a great week ahead!**  
Have some feedback or suggestions? Let us know at [qs.com](https://www.qs.com/contact-us/?ref=newsletters.qs.com)