HR trends and what they mean: Skill instability

Are we undergoing a sort of “skills reckoning”? With the fast rise of AI, you’d be forgiven for thinking so — but what is actually happening in today’s organizations? Some of the latest insight from the World Economic Forum might challenge that notion.

Their latest Future of Jobs Report 2025 reveals an interesting shift: while skill instability – the rate at which existing skills become outdated or transformed – remains significant at 39% of workers, this actually represents a surprising decline from previous years.

It turns out that organizations may be adapting better to rapid change, with an increasing share of workers (50%) having completed training, reskilling or upskilling measures, compared to just 41% in 2023. So, has the time come for us to celebrate?

The declining rate of skill instability doesn't mean HR teams can relax. Many may need to focus or double down on future skill development as soon as today. 

As Dr. Ellen Choi, professor at Toronto Metropolitan University, explains in Forbes: 

"According to respondent data, 50% of participants have already completed work-related training, reskilling, or upskilling and despite this, participants expect that almost half (39%) of their existing skill sets will be transformed or outdated over the next five years. In other words, if you're currently good at 10 tasks, in the next five years, the skills you currently have will no longer be applicable to 4 of these tasks."

This ongoing skills transformation requires strategic HR planning. Till Leopold, Head of Work, Wages and Job Creation at the World Economic Forum, emphasizes the need for balanced skill development: 

"Helping workers achieve the right mix of technical and human skills will be vital as the future of work continues to evolve."

While the slowing of skill instability is encouraging news, HR teams still need to prioritize skill development to avoid falling behind. The decreasing rate indicates that proactive approaches to workforce development are working, which is why we’d suggest considering the following approaches: 

• Implement skills forecasting: Regularly assess your organization's future skill needs against current capabilities. Use data from industry reports, competitor analysis, and internal performance metrics to identify emerging skill gaps before they have an impact on performance.

• Create personalized learning pathways: Move beyond one-size-fits-all training programs by developing targeted upskilling initiatives that address both technical skills (like AI and data analytics) and human capabilities (such as resilience, creativity, and leadership) that you may need. 

• Build cross-functional collaboration opportunities: Foster knowledge sharing and skill development by creating projects that bring together employees from different departments. This approach helps spread specialized skills throughout the organization while building versatility in your workforce.

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That's all for this week's edition of Personio Pulse: This Week in HR. Check back next week as we continue to dissect the latest trends impacting the ways we work. 

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