Future-ready skills policy: low- and middle-income countries pathways to growth, social justice and employment

The discussion focuses on practical, evidence-based recommendations to help low- and middle-income countries (LMICs) strengthen their skills ecosystems in support of sustainable development, productivity, innovation, and inclusive employment.

Audience

The target audience includes policy makers and government officials, employers and workers organisation, skills and research institutions, private sector leaders and experts, education and training providers, academia, development partners and banks, investors & innovators.

Recording

Background

In today’s rapidly evolving global economy, the nature of work is undergoing profound transformation, driven by technological innovation, climate change, shifting trade dynamics, and demographic transitions. As industries adapt, so must the workforce. Yet, a widening skills gap threatens economic growth, employability, and innovation across the globe.

While all countries face challenges in aligning education and training systems with changing labour market needs, low- and middle-income countries (LMICs) are disproportionately affected. These countries grapple not only with emerging demands—such as digital and green skills—but also with long-standing systemic issues: underfunded education systems, weak industry linkages, outdated curricula and infrastructure, and shortages of qualified trainers.

The statistics are stark:

• Youth unemployment globally stands at 16%, with nearly one in four young people not in education, employment, or training (NEET).
• Public investment in TVET averages less than 0.2% of GDP, resulting in outdated facilities and limited capacity.
• Formal TVET access in many LMICs is below 25%, compared to 68% in OECD countries.
• Rapid growth of workforce in LMICs, especially Africa (85% of global workforce increase by 2035).
• Low enrolment in TVET (e.g. ~6% of secondary students in Africa; rural & female youth are underserved).

While many countries are developing new strategies to address these challenges, implementation remains uneven. For example, the African Union Commission’s new continental TVET strategy offers innovative recommendations to promote equity, productivity, and sustainable development—but translating policy into practice is a persistent hurdle.