Tharman Shanmugaratnam, President of Singapore, recently warned about the looming job crisis likely to sweep the world, resulting in a new kind of international disorder. To deal with it, countries must rethink higher education, focusing more on technical skills, so that it serves the needs of students, he suggested.

“About 1.2 Bn people in developing and emerging world are going to be entering the workforce in the next 10 years –—an unprecedented number. Yet, current projections suggest only 400 million jobs will be created,” he noted at the WEF Annual Meeting 2025 in Davos.    

Gap between workforce and job market demand

There is a huge gap between these figures, a significant concern as about 800 Mn people would find some other ways to enter the informal economy or may remain underemployed or unemployed, he added. “We know the consequences. They are not just about wages, they are not just for economics; they are fundamentally social, political and they will shape the new international disorder,” he warned.

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In many countries, including India, and China, tertiary education systems have been expanded but over academised, he said, adding, “They are overly academically oriented and neglected technical skills. We have got to find ways in which the technical and applied route for learning is also a route to achieve the highest levels of excellence and expertise.” 

Role of governments will be key 

Focussing on vocational training is important to prepare youth to join the future workforce, said Veronica Nilsson, General Secretary of the Trade Union Advisory Committee to the OECD. 

However, “governments are not investing enough on vocational training. They are just interested in research published by universities… that is even declining in many countries,” she said.

“It is not the time to reduce the vocational training. It only makes 0.01% of GDP. So, I think it really shows that governments have huge responsibility, and they need to take up this responsibility,” she added. 

Focussing on skills crucial in the AI age 

Closing the jobs gap depends on more than technical know-how, however, most employers prioritise human skills, such as creative thinking and resilience as these are crucial in the era of Artificial Intelligence (AI).

“So much of reliance on doing AI is dependent on assuming that the past is going in the near future. We can only train AI from data before which may or may not be diagnostic of where we are headed. 

“We no longer need just fact collectors—we need dot connectors, people who can synthesise patterns and identify changes AI might miss,” said Adam Grant, Saul P. Steinberg Professor of Management and Psychology, Wharton School.  

Broadening Internet access in developing regions 

Remote working has given opportunities to youth working for companies, sitting in any part of the world. It only needs better internet connectivity.      

“We would like to prepare young Africans to serve the need for talent in other parts of the world but also create opportunities where they are. Perhaps these two objectives can be achieved simultaneously due to the opportunities open through remote work,” said Erika Kraemer Mbula, Professor of Economics at the University of Johannesburg. 

The next decade will shape the careers—and lives—of over a billion people. Will they find opportunities or be left struggling in an evolving job market? The answer lies in how governments, businesses, and society step up today.