A new report by Lightcast, a leader in labor market data and analytics, reveals that one-third of the skills required for the average job in the U.S. have changed over the last three years. Titled “The Speed of Skill Change,” the report highlights how rapid skill evolution is reshaping workforce dynamics, challenging workers, companies, and educational institutions to adapt swiftly.
- Rapid Skill Turnover
- 32% of the skills required for the average job in 2024 differ from those in 2021.
- For the top 25% of occupations, 75% of required skills have changed.
- Implications for education: Skills learned by second-year college students today may become obsolete by graduation.
- Impact on Workforce Strategy
- Workforce strategies based solely on job titles risk becoming outdated due to evolving skill requirements.
- A skills-based approach is crucial for building a future-ready workforce.
- Skill Disruption Index
- Lightcast’s proprietary index scores occupations based on how significantly their required skills have changed.
Primary Drivers of Skill Change
- Generative AI
- Widespread adoption across industries like education, marketing, and content creation.
- Job postings requiring GenAI skills surged by 15,625% over three years.
- Green Technology
- Demand for sustainability skills is expanding in unexpected roles, including Case Worker, Data Scientist, and Supply Chain Management.
- Cybersecurity
- Rapid growth in technical, managerial, and compliance roles across all industries.
- Cybersecurity skill demand increased by:
- 570% in biomedical roles.
- Nearly 400% among laboratory technicians.
Challenges and Implications
- Labor Market Pressures
- The ongoing labor shortage compounds the challenges posed by rapid skill changes.
- Organizations must proactively evolve talent strategies to attract, train, and retain skilled workers.
- Strategic Risks for Businesses
- Companies not adopting a skills-based strategy may face difficulties hiring or retaining talent due to outdated job architectures and lack of development opportunities.
Recommendations for Businesses
- Transition to a Skills-Based Talent Strategy
- Rethink job descriptions, recruitment processes, and skills taxonomies.
- Implement robust reskilling and upskilling programs to keep staff relevant.
- Utilize Data-Driven Insights
- Leverage tools like Lightcast’s Open Skills Library to standardize skills language.
- Use the Skills Navigator for expert guidance on aligning skills with business goals.
- Adapt Workforce Planning
- Reassess job architecture and address skill and capacity gaps to remain competitive.
The rapid pace of skill evolution demands agility from organizations, educational institutions, and individuals alike. By adopting a skills-first approach, businesses can proactively address emerging trends and build a resilient, future-ready workforce.
As Cole Napper, VP of Research & Innovation at Lightcast, aptly puts it:
“Using data to quantify skill change allows organizations to stay ahead of the curve, ensuring they attract and retain the right talent to meet evolving market demands.”
