Bridging The Skills Gap: Fuelling Careers And The Economy In Pakistan

Summary

In this presentation, Sardar from Economist Impact discusses a recent research study on digital upskilling and reskilling in Pakistan, supported by Google. The study highlights the demand for digital skills, with 57% of employees prioritizing them for career advancement. Despite this, advanced digital skills like coding and cloud computing are not widely considered essential. The potential impact of digital upskilling includes youth employment, increased foreign reserves through freelancing, and empowering women in the workforce. Challenges such as limited access to electricity and the internet, along with workplace barriers, are also addressed. The session concludes with recommendations for employers and the government to foster a more conducive ecosystem for digital skills development.

Takeaways

• 😀 Digital skills are a top priority for employees in Pakistan, with 57% considering them essential for career growth.
• 😀 Many employees believe that digital skills help improve their ability to negotiate better pay and advance in their careers.
• 😀 Despite the high demand for digital skills, many employees do not consider advanced skills (e.g., coding, cloud computing) as must-haves.
• 😀 There is a significant gap in employability, with only 20% of local IT and engineering graduates considered employable by the industry.
• 😀 The freelance economy in Pakistan holds enormous potential, with over 3 million freelancers, contributing significantly to foreign reserves (around $400 million in FY 2022).
• 😀 Upskilling, particularly digital skills, can help address youth unemployment, as 31% of educated youth in Pakistan are unemployed.
• 😀 Women's participation in the labor force is low (25%), but digital skills can help bridge this gap and increase their economic contribution, potentially boosting GDP by 60%.
• 😀 Soft skills, such as communication and leadership, are also highly valued by employees, with 81% stating that digital skills enhance their ability to think critically and communicate.
• 😀 Major challenges in digital upskilling include macroeconomic issues like access to electricity (25%) and internet (47%), which hinder the ability to reskill.
• 😀 Employers are expected to play a key role in providing access to digital training programs and information on in-demand skills, while the government should facilitate a conducive ecosystem for skill development.

Q & A

What was the main objective of the research conducted by Economist Impact?

The main objective of the research was to assess the demand for digital upskilling and reskilling in Pakistan and the Asia-Pacific region, with support from Google, and to understand the impact of these skills on the workforce.

What are the most in-demand skills according to the research?

The research found that digital skills were considered the most in-demand, with 57% of employees prioritizing them. Other important skills include self-management, soft skills, and analytical skills.

Why do employees consider digital skills to be important?

Employees view digital skills as crucial for career progression and the ability to negotiate better pay. They see these skills as essential for staying competitive in the job market.

Which digital skills are considered must-have by employees in Pakistan?

Basic digital skills are considered must-have by employees, but advanced skills like coding, programming, cloud computing, Internet of Things (IoT), and process automation are seen as 'nice-to-haves' and not necessarily essential for the local market.

What is the current state of employability among IT and Engineering graduates in Pakistan?

Only 20% of local IT and Engineering graduates are considered employable, which highlights a gap in advanced digital skills among graduates.

How can digital upskilling and reskilling impact Pakistan's economy?

Digital upskilling and reskilling can create significant benefits, including addressing youth unemployment, increasing foreign reserves through freelancing, and empowering women by increasing their participation in the labor force.

What role does freelancing play in Pakistan’s economy?

Freelancing plays a crucial role, with the freelance market contributing approximately $400 million in foreign reserves in 2022. Pakistan is also one of the fastest-growing freelance economies in the world, with a large proportion of freelancers under the age of 30.

What is the gender disparity in Pakistan's labor force participation?

Labor force participation rates in Pakistan are heavily skewed by gender, with only 25% of women in the working-age group participating in the labor force, compared to 81% of men.

How can digital upskilling benefit women in Pakistan?

Digital upskilling can empower women by bringing them into the labor force, especially in freelancing, where female freelancers earn about 10% more than their male counterparts, thus increasing economic participation and potential income.

What are the macroeconomic challenges hindering digital upskilling in Pakistan?

Macroeconomic challenges include limited access to electricity and the internet. Nearly one in four Pakistanis lack access to electricity, and 47% of the population does not have internet access, which severely limits opportunities for upskilling.

What expectations do employees have from the government and employers regarding upskilling?

Employees expect the government to provide financial incentives and access to diverse skilling programs. From employers, they seek clear information about in-demand skills and the provision of training opportunities to help employees develop those skills.

What role do soft skills play in the context of digital upskilling?

Soft skills, particularly communication and leadership skills, are seen as crucial for career advancement. Employees believe that digital skills enhance their ability to communicate and think critically, making soft skills more effective.