As artificial intelligence (AI), the green transition, and demographic shifts rapidly reshape the global labour market, a new International Labour Organization (ILO) report warns that current learning systems are failing to keep pace. The report, Lifelong Learning and Skills for the Future, asserts that without immediate and inclusive investment, these transformations will deepen existing inequalities both between and within nations.
The Access Gap: Who is Being Left Behind?
The ILO’s research reveals a significant disparity in how workers access skill development. While 51% of full-time, permanent workers in formal firms receive employer-led training, only 16% of the general population aged 15 to 64 participated in structured training in the prior year.
- Learning by Doing: Workers in informal jobs or smaller enterprises primarily gain skills through “on-the-job” experience rather than structured programmes.
- The Funding Crisis: Even in high-income nations, 34% of countries allocate less than 1% of their public education budgets to adult learning. In low-income countries, this funding gap affects 63% of nations.
Beyond Digital: The “Rounded” Skill Profile
A critical finding of the report is that technical skills alone, such as AI or green tech, are insufficient. Employers are increasingly seeking a rounded skill profile that combines digital literacy with foundational cognitive and socio-emotional abilities.
| Skill Category | Market Demand Trends |
| Socio-Emotional | Accounts for over 50% of skills requested in markets like Brazil and the UAE. |
| Foundational | Critical thinking and social abilities are more vital for most AI users than specialist knowledge. |
| Green Skills | Globally, 32% of workers perform environmentally relevant tasks, though job quality remains a concern. |
| Care Sector | Demand for care workers is expected to jump from 85 million (2023) to 158 million by 2050. |
Strategic Outlook: The “Human in the Loop” Imperative
The ILO’s findings validate our ongoing analysis of the Malaysian AI Pipeline. As the National AI Office (NAIO) deploys its RM5.5 billion funding commitment, the emphasis must shift from pure hardware to human capital.
- Regional Alignment: This global warning serves as a mechanical necessity for Malaysia to integrate the ASEAN Digital Economy Framework Agreement (DEFA), which prioritises cybersecurity resilience and regional talent mobility.
- The Complexity Tax: Fragmented learning systems act as a “Complexity Tax” on SMEs. Centralising adult education, much like the MIVSB-UBD partnership centralises deep-tech research, is essential for regional competitiveness.
Editor’s Take: Investing in the “Bridge”
For the Malaysian Business reader, ILO Director-General Gilbert F. Houngbo’s message is clear: lifelong learning is the bridge between today’s jobs and tomorrow’s opportunities. In Malaysia, where we are actively building a “Second Dubai” vision in Perlis based on intangible assets like trust and innovation, our workforce must be the primary asset. We cannot afford to have a RM426.7 billion investment pipeline serviced by a workforce with stagnant skill sets. Prioritising “rounded” skills is no longer a corporate social responsibility (CSR) goal; it is a core sovereign strategy for economic survival.