Demand for digital skills on the rise
October 9, 2022 | 00:00
MANILA, Philippines – More than 60% of employers have seen an increase in demand for new hires with digital skills over the past five years, according to a report by the Asian Development Bank (ADB) and online professional network LinkedIn .
The report titled “Digital Jobs and Digital Skills: A Changing Landscape in Asia and the Pacific” showed that 64% of employers in the Philippines believe that the demand for digital skills has increased over the past five years.
In addition to the Philippines, employers in Bangladesh, India and Indonesia, as well as the United States as a reference country, were surveyed to assess the demand for digital skills.
Growing demand for digital skills was highest in Bangladesh, with 90% of employers saying demand for digital skills had increased, followed by India at 79%, the United States at 75% and Indonesia at 67%.
Across all five countries, 75% of employers reported an increase in demand for basic and advanced digital skills over the past five years.
On average, employers across the five countries said eight of the last 10 hires should have at least basic digital knowledge and skills, while four of the last 10 hires should have advanced digital skills.
In the Philippines, six of the last 10 employees hired were required to have basic digital skills.
That’s less than nine of the last 10 hires expected to have basic digital skills in Bangladesh, and eight of the last 10 hires in India, Indonesia and the United States.
When it comes to advanced digital skills, two of the last 10 hires in the Philippines were required to have these skills.
In Bangladesh, five of the last 10 hires are required to have advanced digital skills, while in India, Indonesia and the United States, four of the last 10 hires are required to have such skills.
In response to the increased demand for digital skills, 68% of all employers surveyed said they provide digital skills training to their employees.
In the Philippines, 58% said they have digital skills training for their employees.
Other countries covered in the report had a higher percentage of employers providing digital skills training to their workforce with the United States at 80%, Bangladesh at 64%, Indonesia at 73% and India at 65%.
Collaboration between industry and trainers, however, was weak in all countries surveyed, with only 38% of employers reporting having partnerships with an external training provider.
In the Philippines, the percentage of employers with links to external training providers is only 33%.
Regarding the proportion of employees who have undergone digital training, the report showed that the percentage is 46% in the Philippines, higher than India’s 39%, but lower in the United States at 52%, Indonesia at 56%, in Bangladesh 61%. percent. and the overall average for the region at 51 percent.
Employers in the Philippines, Bangladesh and Indonesia cited budgetary constraints and the difficulty in identifying suitable training partners as challenges to upskilling and reskilling the workforce.
Additionally, employers cited lack of motivation and the absence of a growth mindset among employees, leading to passive participation in training programs.
As the digital economy accelerates in Asia and the Pacific and e-commerce is expected to reach $2 trillion by 2025, the Director General of the AfDB’s Sustainable Development and Climate Change Department, Bruno Carrasco , said it was important to invest in digital skills and talent.
“As digital skills and credentials grow in importance, we need to ensure that education systems contribute to closing the digital divide for disadvantaged or marginalized people – not widening it,” said Carrasco.
For his part, Dave Woodward, vice president, regional general counsel and head of public policy for APAC at LinkedIn, said the pandemic has changed the way people work and that digital transformation, which has led to a demand for digital jobs and digital skills, will continue.
“It is essential that companies take a skills-based approach to recruiting and developing talent. Workers must also cultivate a growth mindset and embrace lifelong learning. This is how we will continue to create opportunity for every member of the global workforce,” Woodward said.