UAE performs exceptionally well in preparing its workforce for the future

• BCG’s Future Skills Architect Tool shows that UAE has a 15.1 point lead in comparison to the global average.
• Globalisation, demographic and regional shifts, digitisation, and urbanisation are just some of the factors affecting human capital development around the world.

The UAE is making good strides in preparing for the workforce of the future and is ranked above the global average, according to findings by Boston Consulting Group.

Findings from BCG’s Future Skills Architect (FSA) tool show that the UAE has a score of 62.3, above the global average of 47.2.

FSA is designed to help policymakers and business leaders uncover instances of the skills mismatch in their economies.

By using the FSA instrument, a government can uncover many factors underlying the skills mismatch in its country and can adopt strategies to reskill and enable the workforce.

The UAE performed exceptionally well in the area of skills liquidity – where decision-makers ensure that people outside a job’s immediate location apply for it, to enlarge the candidate pool for every job, and to give every candidate access to a larger pool of jobs.

Besides, the UAE has also made a significant push in improving the quality of their schools, in particular private schools, as shown by the latest Trends in International Mathematics and Science Study (TIMSS) results.

Two areas UAE needs to improve

BCG analysis highlights two key areas that the UAE should improve to create a future-ready society and economy. Firstly, Planners and HR specialists must cultivate a “Human-Focused Environment” by understanding the specific needs, values, and demands of talent, whose knowledge, skills, experiences, and ambitions differ greatly from one generation to another.

Secondly, policymakers and business leaders must figure out how to unlock the potential of different types of labour in the economy, including older workers and people with determination.

BCG experts said that governments and businesses must trace the root causes of the skills mismatch and adopt innovative policy measures to tackle them.

Dr. Leila Hoteit, the global leader of BCG’s education, employment and welfare sector, said that countries around the world, including the UAE, are faced with a fundamental skills-related problem, as the skills required for the future are rapidly evolving, further exacerbated since the pandemic began. Responding to the skills mismatch should be at the top of every country’s human capital development agenda, as it continues to be a costly burden holding back economic growth opportunities of the future, she said.

“Although governments and businesses are aggressively tackling pandemic related short-term employment challenges through retention and redeployment of the workforce, they must also work together on reskilling to meet future needs, make opportunities visible, and provide the right context for people to be motivated.”

Maya El Hachem, Managing Director and Partner at BCG, said that globalisation, demographic and regional shifts, digitisation, and urbanisation are just some of the factors affecting human capital development around the world.

“The FSA is designed to help policymakers and business leaders uncover instances of the skills mismatch in their economies along with understanding the standard of capabilities and education, labour market opportunities, and intrinsic motivation to figure out the ways to deal with them,” she said.