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$1.1 Trillion at Stake: Pearson Report Urges Action, Solutions for Skills Gap

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Pearson (PSON.L) released a report titled 'Lost in Transition: Fixing the Skills Gap' at the World Economic Forum Annual Meeting, revealing that inefficient career transitions and learning gaps cost the U.S. economy $1.1 trillion annually (5% of GDP). The research warns of a potential global 'skills chasm' between employer needs and employee capabilities.

The report emphasizes two critical actions: prioritizing 'learning to learn' and developing modern skilling pathways. The first focuses on metacognitive skills that can accelerate yearly learning progress by seven months. The second promotes work-based learning and estimates the U.S. could gain $40 billion annually by reducing transition time from education to work by six weeks.

The research, based on Pearson's Faethm data, explores solutions including virtual reality for career exploration, lifelong learning financing, digital wallets for skills tracking, and AI-powered career mapping.

Pearson (PSON.L) ha pubblicato un rapporto intitolato 'Persi nella transizione: Risolvere il divario delle competenze' durante il Meeting annuale del World Economic Forum, rivelando che le transizioni professionali inefficienti e i gap di apprendimento costano all'economia statunitense $1,1 trilioni all'anno (5% del PIL). La ricerca mette in guardia su un potenziale 'baratro delle competenze' globale tra le esigenze dei datori di lavoro e le capacità dei dipendenti.

Il rapporto sottolinea due azioni critiche: dare priorità al 'imparare a imparare' e sviluppare percorsi di abilità moderni. La prima si concentra sulle competenze metacognitive che possono accelerare il progresso di apprendimento annuale di sette mesi. La seconda promuove l'apprendimento basato sul lavoro e stima che gli Stati Uniti potrebbero guadagnare $40 miliardi all'anno riducendo il tempo di transizione dall'istruzione al lavoro di sei settimane.

La ricerca, basata sui dati Faethm di Pearson, esplora soluzioni tra cui la realtà virtuale per l'esplorazione delle carriere, il finanziamento dell'apprendimento continuo, portafogli digitali per il tracciamento delle competenze e la mappatura delle carriere supportata dall'IA.

Pearson (PSON.L) publicó un informe titulado 'Perdido en la transición: Solucionando la brecha de habilidades' en la reunión anual del Foro Económico Mundial, revelando que las transiciones laborales ineficientes y las brechas de aprendizaje cuestan a la economía de EE. UU. $1.1 billones anuales (5% del PIB). La investigación advierte sobre un potencial 'abismo de habilidades' global entre las necesidades de los empleadores y las capacidades de los empleados.

El informe enfatiza dos acciones críticas: priorizar el 'aprender a aprender' y desarrollar caminos de habilidades modernos. La primera se centra en habilidades metacognitivas que pueden acelerar el progreso de aprendizaje anual en siete meses. La segunda promueve el aprendizaje basado en el trabajo y estima que EE. UU. podría ganar $40 mil millones anuales al reducir el tiempo de transición de la educación al trabajo en seis semanas.

La investigación, basada en los datos Faethm de Pearson, explora soluciones que incluyen realidad virtual para la exploración profesional, financiación del aprendizaje a lo largo de la vida, carteras digitales para el seguimiento de habilidades y mapeo de carreras impulsado por IA.

피어슨 (PSON.L)은 세계경제포럼 연례회의에서 '전환에서 길을 잃다: 기술 격차 해소하기'라는 제목의 보고서를 발표하며 비효율적인 경력 전환과 학습 격차가 미국 경제에 연간 1.1조 달러 (GDP의 5%)의 비용을 초래한다고 밝혔습니다. 이 연구는 고용주의 필요와 직원의 능력 사이의 잠재적 글로벌 '기술 간극'에 대해 경고합니다.

보고서는 두 가지 중요한 행동을 강조합니다: '학습하는 법 배우기'를 우선시하고 현대적인 기술 경로를 개발하는 것입니다. 첫 번째는 연간 학습 진행을 7개월 가속화할 수 있는 메타 인지 기술에 초점을 맞추고 있습니다. 두 번째는 일 기반 학습을 촉진하며, 교육에서 취업으로의 전환 시간을 6주 단축함으로써 미국이 연간 400억 달러를 얻을 수 있을 것으로 추정합니다.

피어슨의 파에씀 데이터에 기반한 이 연구는 경력 탐색을 위한 가상 현실, 평생 학습 자금 조달, 기술 추적을 위한 디지털 지갑, AI 기반 경력 매핑 등을 포함한 솔루션을 탐구합니다.

Pearson (PSON.L) a publié un rapport intitulé 'Perdus dans la transition : Combler le fossé des compétences' lors de la réunion annuelle du Forum économique mondial, révélant que les transitions professionnelles inefficaces et les lacunes d'apprentissage coûtent à l'économie américaine 1,1 trillion de dollars par an (5 % du PIB). La recherche met en garde contre un potentiel 'abîme de compétences' mondial entre les besoins des employeurs et les capacités des employés.

Le rapport souligne deux actions critiques : donner la priorité à 'apprendre à apprendre' et développer des voies de formation modernes. La première se concentre sur des compétences méta-cognitives pouvant accélérer le progrès d'apprentissage annuel de sept mois. La seconde promeut l'apprentissage basé sur le travail et estime que les États-Unis pourraient gagner 40 milliards de dollars par an en réduisant le temps de transition de l'éducation au travail de six semaines.

La recherche, basée sur les données Faethm de Pearson, explore des solutions incluant la réalité virtuelle pour l'exploration de carrière, le financement de l'apprentissage tout au long de la vie, des portefeuilles numériques pour le suivi des compétences et la cartographie des carrières alimentée par l'IA.

Pearson (PSON.L) hat auf dem Jahrestreffen des Weltwirtschaftsforums einen Bericht mit dem Titel 'Verloren in der Übergangsphase: Den Kompetenzschatz beheben' veröffentlicht, in dem aufgezeigt wird, dass ineffiziente Karrieretransitionen und Lernlücken der US-Wirtschaft jährlich 1,1 Billionen Dollar (5 % des BIP) kosten. Die Forschung warnt vor einer potenziellen globalen 'Kompetenzkluft' zwischen den Anforderungen der Arbeitgeber und den Fähigkeiten der Arbeitnehmer.

Der Bericht hebt zwei kritische Maßnahmen hervor: die Priorisierung von 'Lernen zu lernen' und die Entwicklung moderner Qualifizierungswege. Die erste konzentriert sich auf metakognitive Fähigkeiten, die den jährlichen Lernfortschritt um sieben Monate beschleunigen können. Die zweite fördert lernen am Arbeitsplatz und schätzt, dass die USA jährlich 40 Milliarden Dollar gewinnen könnten, indem die Übergangszeit von Bildung zu Arbeit um sechs Wochen verkürzt wird.

Die Forschung, die auf Pearsons Faethm-Daten basiert, untersucht Lösungen, darunter virtuelle Realität zur Karriereerforschung, Finanzierung des lebenslangen Lernens, digitale Geldbörsen zur Verfolgung von Fähigkeiten und KI-gestützte Karriereplanung.

Positive
  • Potential $40 billion annual gain by reducing education-to-work transition time
  • Seven-month acceleration in yearly learning progress through metacognitive skills implementation
  • Partnership developments with Microsoft, Credly, and Degreed for AI and skills validation
Negative
  • $1.1 trillion annual losses (5% of GDP) due to inefficient career transitions
  • Growing gap between employer needs and employee capabilities

Insights

Pearson's latest research highlighting the $1.1 trillion annual cost of skills gaps in the U.S. positions the company strategically in the growing workforce development market. This represents a significant market opportunity as organizations increasingly prioritize upskilling and reskilling initiatives.

The company's ecosystem approach is particularly noteworthy, combining:

  • AI-powered solutions through Microsoft partnership
  • Digital credentialing platform (Credly) with 100 million credentials issued
  • Enterprise learning integration via Degreed

This positions Pearson as a key player in the workplace learning transformation market, estimated to grow substantially as businesses address critical skills gaps. The company's focus on "learning to learn" and modern skilling pathways aligns with emerging enterprise needs, potentially driving recurring revenue streams through corporate training solutions and digital credentialing services.

The strategic partnerships and comprehensive solution approach could accelerate Pearson's transition from traditional education publishing to a digital-first learning company, potentially expanding its total addressable market and improving margin profiles through technology-enabled solutions.

The identified $1.1 trillion market inefficiency presents a compelling revenue opportunity for Pearson, particularly as it transitions to digital-first solutions. The company's strategic initiatives target multiple revenue streams:

  • Corporate training and upskilling programs
  • Digital credentialing services
  • AI-powered learning solutions
  • Enterprise skill development platforms

The partnership ecosystem strengthens Pearson's competitive moat, potentially leading to higher-margin recurring revenue streams compared to traditional publishing. The estimated $40 billion opportunity just from reducing education-to-work transition times demonstrates the scale of potential market capture.

This strategic positioning could drive multiple expansion as Pearson evolves from a traditional publisher to a technology-enabled learning solutions provider. The focus on enterprise solutions and digital credentials suggests improved revenue predictability and potential margin expansion through scalable digital platforms.

  • Demographic shifts, technological advances, unprepared workforce put economies at risk of "skills chasm"
  • Annual U.S. earnings losses of $1.1 trillion from inefficient career transitions, learning gaps
  • "Learning to learn" and modern skilling pathways are critical to unlocking economic and emotional gains for individuals and businesses

DAVOS, Switzerland, Jan. 22, 2025 /PRNewswire/ -- New research from Pearson (FTSE: PSON.L), the world's lifelong learning company, finds that inefficient career transitions and related learning gaps are costing the U.S. economy $1.1 trillion annually – a staggering 5% of GDP.

The accompanying report, "Lost in Transition: Fixing the Skills Gap," released today at the World Economic Forum Annual Meeting, warns of a potential global "skills chasm" between employer needs and employee capabilities, and urgently calls for a fundamental shift in approaches to learning and skills development.

The full report details the economic and personal impact of learning gaps during major career transitions - from school to work, layoffs or business shifts, and disruptions caused by AI automation. It also highlights two critical imperatives for immediate, collaborative action across the education and business sectors: the need to learn more effectively and the development of modern skilling pathways that evolve with the future of work.

Prioritize "Learning to Learn"
Improving the way people learn is stressed as vital for an adaptive workforce ready for continual upskilling, career pivots and personal career fulfillment. Pearson advocates for "learning to learn" becoming a core focus across education and corporate training, emphasizing metacognitive skills such as goal setting, critical thinking and self-regulated learning. A cited study found that these approaches can accelerate yearly learning progress by seven months.

Develop Clear Modern Skilling Pathways
Moving beyond outdated linear career paths, Pearson encourages reimagined dynamic and efficient skilling pathways that flex to future workforce needs. It promotes work-based learning like apprenticeships to align skills with real-world demands, tailored support, and mentorships. It estimates the U.S. could gain $40 billion annually just by shortening transition times from formal education to work by six weeks.

Implementing such approaches could unlock trillions for economies while creating life-changing opportunities for millions worldwide.

"There's real potential for the skills gap to become a chasm if we don't act. The traditional education that slingshots people into their careers is no longer enough. Learning how to learn will become the focus for students, workers and employers to help people adapt and re-skill throughout their careers and their learning journey," said Pearson CEO Omar Abbosh. "We can help prevent the skills gap from becoming a skills chasm when employers, educators, workers and government partner to find solutions." 

The full report and its findings are based on quantitative analysis including data from Pearson's Faethm, literature reviews and interviews with leading experts. Among other topics explored:

  • Virtual reality for career exploration
  • Lifelong learning financing
  • Digital wallets for robust skills tracking
  • AI-powered career mapping
  • The creation of a common skills language
  • Assessments for career progression and wage growth

Read Pearson's new report, "Lost in Transition: Fixing the Skills Gap."

Related Pearson News

About Pearson
At Pearson, our purpose is simple: to help people realize the life they imagine through learning. We believe that every learning opportunity is a chance for a personal breakthrough. That's why our c. 18,000 Pearson employees are committed to creating vibrant and enriching learning experiences designed for real-life impact. We are the world's lifelong learning company, serving customers in nearly 200 countries with digital content, assessments, qualifications, and data. For us, learning isn't just what we do. It's who we are. Visit us at pearsonplc.com.

Media Contact:
Laura Ewart laura.ewart@pearson.com (Europe)
Sami Miller sami.miller@pearson.com (US)

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/1-1-trillion-at-stake-pearson-report-urges-action-solutions-for-skills-gap-302357639.html

SOURCE Pearson

FAQ

How much is the skills gap costing the US economy according to Pearson's report?

According to Pearson's report, inefficient career transitions and learning gaps are costing the U.S. economy $1.1 trillion annually, equivalent to 5% of GDP.

What potential savings could PSON's proposed education-to-work transition improvements generate?

Pearson estimates that the U.S. could gain $40 billion annually by shortening transition times from formal education to work by six weeks.

What are the two main solutions proposed in Pearson's skills gap report?

The report proposes two main solutions: prioritizing 'learning to learn' with focus on metacognitive skills, and developing modern skilling pathways through work-based learning and mentorships.

How much can metacognitive skills accelerate yearly learning progress according to PSON's research?

According to the report, implementing metacognitive skills can accelerate yearly learning progress by seven months.

What technologies is Pearson implementing to address the skills gap?

Pearson is implementing virtual reality for career exploration, digital wallets for skills tracking, AI-powered career mapping, and developing a common skills language.

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