The overall skill level in a workforce determines the tasks that workforce can competently perform. As such, it’s directly linked to economic productivity; not only do you need these skills to foster innovation, but the impact of any innovation or technological progress will be severely limited if the workforce lacks the skills to properly use it.
Chief Economist, Kenan Institute of Private Enterprise
Source: “Market Insights by Wiley: Closing the Skills Gap 2023″
It’s difficult to measure the level of skills in the workforce, which makes it challenging to determine whether there’s a skills gap and whether it’s growing. One method of measurement uses employer-level survey data to assess whether employers can hire workers with the skills they need to perform a given job. The 2023 Wiley survey illustrated here points toward an expanding gap.
Demographic mix influences the country’s labor pool and its intrinsic skills. With the baby boomer generation moving into retirement, the US labor force participation rate has dropped, leaving employers with a shrinking pool of workers from which to draw the new skills they need.
% of Total Population
Shaded areas represent recessions as determined by the National Bureau of Economic Research
Source: Census Bureau
Financing constraints can hinder individuals who want to add or upgrade skills to take advantage of a changing job market. Skills-based training through earn-and-learn programs paid for by employers, such as apprenticeships, eliminate the need for financial aid.
The Kenan Institute Distinguished Fellows, appointed on an annual basis, comprise an exemplary set of global scholars committed to leveraging their individual expertise, thought leadership, research and networks to further the institute’s efforts to examine – and drive solutions to – the most complex and timely issues facing business and the economy today. The 2025 Distinguished Fellows work to support the Kenan Institute’s exploration of the skills gap.