Skills Outlook and Implications on the Labour Market

• Skills inadequacy contributes to unemployability and weak business outcomes.
• Upskilling and reskilling facilitate employability, wage growth, and improved business outcomes.
• Analytical, leadership and social influence skills are ranked the most valuable skills for the next five years.
• LSETF offers upskilling and reskilling opportunities through her programmes.

Skills, knowledge, capabilities, and personal attributes are essential for individuals to successfully undertake tasks, whether as employees or employers. Even entrepreneurs are not exempt from these requirements, as inadequacies in these areas often contribute to the failure of most Small and Medium-sized Enterprises (SMEs). Commonly referred to as soft skills and technical skills, these proficiencies play a pivotal role in employability, employee performance, and business outcomes.

The World Economic Forum’s Future of Jobs Report 2023 offers valuable insights into the most prioritised skills for the next five years, benefiting job seekers, employees, and employers alike. The key skills highlighted include analytical thinking (58%), leadership and social influence (56%), creative thinking (47%), resilience, flexibility, and agility (44%), technological literacy (40%), empathy and active listening (33%), environmental stewardship (33%), resource management and operations (33%), AI and big data (30%), service orientation and customer service (30%), and talent management (30%).

These skills can be categorised into cognitive, socio-emotional, and digital domains, all of which significantly facilitate employment opportunities, wage growth, and overall business success.

• Cognitive skills, such as creative and analytical thinking, are crucial for the future workforce. These abilities enable individuals to adapt to rapidly changing environments, innovate, and identify emerging opportunities. By fostering and encouraging the development of these skills within their workforce, businesses can drive innovation and maintain a competitive edge in dynamic markets. Notably, analytical skills rank highest among cognitive skills. This higher-order cognitive ability empowers individuals to identify problems and develop comprehensive solutions. Those equipped with this skillset excel as planners, providing holistic approaches to problem-solving and achieving sustainable solutions.
• Social and emotional skills have gained even more importance due to the rise of automation and disruptive technologies like artificial intelligence. Unique human skills such as leadership and social influence, empathy and active listening, resilience, flexibility, agility, service orientation and customer service, environmental stewardship, and talent management have become invaluable. These skills enable individuals to work effectively in teams, understand and cater to customer needs, and easily navigate challenges. For businesses, investing in the development of these skills enhances customer satisfaction. It fosters strong relationships with both clients and employees.
• Digital skills are increasingly crucial across industries. As the Nigerian economy embraces digital transformation, individuals and businesses must enhance digital literacy to remain competitive. This entails acquiring skills such as AI, big data proficiency, and technological literacy. Such digital skills open doors to a broader range of job opportunities for individuals, while businesses that invest in digital upskilling enhance their market competitiveness. Specifically, digital skills empower businesses to leverage digital tools, expand their reach, and bolster customer acquisition potential, ultimately leading to increased revenue.

Implications for Individuals

• Upskilling Opportunities: Individuals in the Nigerian labour market should actively pursue opportunities to acquire digital, cognitive, and socio-emotional skills through training programs, online courses, or vocational education. These endeavours ensure ongoing relevance in the job market and increase employability. The Lagos State Employment Trust Fund (LSETF) offers platforms for young individuals and businesses to upskill in digital and soft skills through employability, business support, and tech-based programmes.
• Adaptability: The dynamic nature of work necessitates individuals to be adaptable and receptive to learning new skills throughout their careers. Embracing a growth mindset and demonstrating a willingness to engage in continuous learning, contribute to better career prospects, increased earnings, and sustained professional growth.

Implications for Businesses

• Talent Acquisition and Retention: Businesses should prioritise creating a conducive environment for upskilling and reskilling initiatives to attract and retain top talent.
• Innovation and Competitiveness: Fostering digital and cognitive skills within the workforce enables businesses to stay competitive by driving innovation, embracing new technologies, entering new markets, and devising novel solutions to complex problems.
• Collaboration and Teamwork: Encouraging the development of social and emotional skills cultivates a collaborative work culture, enhances teamwork, and results in increased productivity and improved customer relationships.

Concluding Thoughts

The Future of Jobs report underscores the global significance of digital, cognitive, and socio-emotional skills. Individuals and businesses prioritising cultivating these skills are better equipped to navigate the evolving job market, leverage emerging opportunities, and contribute to the sustainable economic growth of Lagos State and Nigeria. The Lagos State Employment Trust Fund remains committed to supporting Lagos residents by facilitating employment generation and fostering wealth creation. For more information and to explore a plethora of upskilling and reskilling opportunities, please visit our website and follow us on social media (Facebook, Instagram, Twitter and YouTube).