Report reveals demand for human 'soft' skills outpaces need for digital skills

A new report by Cornerstone titled the "Global State of the Skills Economy Report 2024" examines the trends in hiring and job listings over the last five years. The report is based on analysis of more than 40 terabytes of job market data from 200 countries and territories. It encompasses job postings, resumes, government data, and various other data points, compiled in 11 languages.

The data reveals several key trends. Despite the significant advancements in Artificial Intelligence (AI) and Machine Learning (ML), the demand for human or 'soft' skills such as leadership, communication, and emotional intelligence outpaces the need for digital skills. Globally, human skills are in demand twice as much as digital skills, while in the UK, this ratio stands at 2.4 times.

AI and ML job postings have increased by 65% globally since 2019. Specifically, job postings related to Generative AI (GenAI) have surged by 411%. However, the report indicates that the UK is not leading in hiring for these digital skills, marking a 'middling' performance. Nevertheless, the demand for AR and VR job postings has seen a 154% increase over the past five years, showing that these technologies are expanding beyond entertainment into areas such as training simulations and remote collaboration.

The report highlights that demand for remote and flexible work has risen by 39% globally. In the UK, nearly a fifth of job postings seek remote workers. Countries like Australia (22.8%) and Germany (21%) lead in the number of job postings looking for remote or flexible workers.

India has emerged as a leader in terms of job postings focused on AI and ML, reflecting its growing role in the global AI landscape with 4.1% of its job postings related to these fields. Demand for GenAI skills is rising across various industries, including financial services, healthcare, pharmaceuticals, and banking, indicating that the need for these skills is not limited to the tech sector alone.

In North America, demand for human skills surpasses digital skills by 2.4 times, while in the EMEA region, the discrepancy is even more significant at 2.9 times. The top human skills in demand include communication, interpersonal collaboration, and problem-solving.

Mike Bollinger, Global VP of Strategic Initiatives at Cornerstone, commented on the findings, stating, "Keeping a close watch on changing skills and workplace trends in real-time across the market is essential for forecasting and staying competitive. This report not only reveals the workforce readiness gap, that skills are evolving faster than organisations and individuals can keep pace with, limiting innovation and adaptability, but also emphasises the importance of retaining critical human or 'soft' skills within your organisation."

Bledi Taska, PhD, Head of Analytics at SkyHive by Cornerstone, noted the importance of historical trends in understanding how technological advancements impact industries and skill demands. "By combining historical trends with real-time market intelligence, we gain powerful insights into the evolving landscape. For instance, our report highlights the exponential rise of GenAI skills, but history suggests that, like past innovations, we may see these trends stabilise as GenAI becomes embedded into everyday operations. It's this blend of past lessons and real-time data that equips us to anticipate and prepare for what's next in the workforce," Taska said.