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The world of work is going through some growing pains. More than half of the 5,000 workers surveyed nationally for the 2025 ���۴�ý Career Optimism Index®�� (COI) study say they’re feeling burned out — a record high during the five years of the report’s existence. Just over three-quarters are relying on hope to get through the year, and employees’ sense of control over their professional future is in danger of bottoming out. 

How does this affect the bottom line?

Why should learning and development leaders care about this? Because, as Leo Goncalves, the vice president of the Workforce Solutions Group at ���۴�ý, points out, this can affect the bottom line. “When workers lose confidence in their skills and careers, employers lose productivity, engagement and talent,” he says.

While giving workers opportunities to develop in their career can dramatically enhance motivation, engagement and adaptability, 60% of the 500 employers surveyed in the COI (between December 2024 and January 2025) say they prefer to hire externally rather than train current employees in the skills their businesses need.

For employers and corporate learning leaders, this isn’t just a worker issue — it’s a strategic wake-up call. “Too many companies still look outside for talent they could have cultivated from within,” Goncalves says. “Technological advances like AI can now help uncover hidden skills [in a workforce] and connect them to emerging roles at scale.”

How did the skills gap happen?

One of the biggest reasons for the costly disconnect between employees and employers is the so-called “skills gap” — meaning the space between what companies need and what the current workforce brings to the table.

That gap is threatening to become a chasm, according to Goncalves. “Job requirements are shifting at a much faster pace with the evolution of technology,” he says.

He cites other influences as well, such as the rise of hybrid work in a post-pandemic world. “Despite some companies trying to return to the in-person model opens in new window - individuals understand they have choices now,” Goncalves explains. “And the third driver [of the skills gap] is the amount of automation. AI is using some level of automation and will use more in the future, and that’s another factor adding to the skills gap. Companies need individuals who are able to function in a highly automated environment.” 

For learning and development leaders, he adds, this means redesigning training strategies to move faster, personalize more and map development to actual job evolution, not just course completion.

What should employees be learning? According to Goncalves, most businesses will need people who have a solid foundation in what might be called tech literacy as well as data and analytics.

“In a world where so much data is being produced all the time, we need employees who are able to look at the data, analyze it and draw insights. This cuts across multiple industries,” Goncalves says. A basic knowledge of AI and how it can drive productivity is now quickly emerging as a must-have skill, he adds.

While many of us will have to upskill, or learn new skills to keep up, other roles will require reskilling, or learning an entirely new group of competencies. The World Economic Forum’s ” found that 85% of employers surveyed said upskilling their workforce was a priority and that 70% expect to hire staff with new skills.

The importance of soft skills

In addition to technology-forward knowledge, Goncalves says teamwork, collaboration, communication, creative problem-solving and leadership will be critical, too. These are what he calls “durable power skills.”

“How do you work in an environment where the team is spread throughout the country or the world, and you don’t see them? If you’re a leader, how do you lead a team that’s operating remotely? Good communication and other skills like these are highly correlated with career progression, though many companies struggle to develop them,” Goncalves observes. “It’s a lot easier to buy an off-the-shelf ChatGPT or Adobe Analytics course than it is to teach people how to be an effective member of a team or lead a team working remotely.”

As AI tools take over repetitive tasks, what remains — and increases in value — are the deeply human skills that drive innovation, trust and team performance.

Skills gaps don’t close themselves. But with the right tools and the right mindset, learning leaders can turn disruption into opportunity and build a workforce ready to adapt for whatever comes next.

How learning leaders can respond to the skills gap

The good news? Learning leaders now have access to tools that didn’t exist a few years ago. AI-powered platforms can reveal the hidden potential in a workforce, personalize development at scale and align learning with real business needs.

Learning providers like ���۴�ý, which has a tradition of educating working adults, are now leveraging AI to scale durable skills development through cost-effective, real-time simulations, feedback on interactions and individualized coaching.

Here are three ways to support a workforce with AI

• Professional development training: Scale relevant skill building with speed and flexibility. Explore 100% online, self-paced courses with real-world scenarios and AI-driven assessments to build in-demand skills.
• Skillmore™ skills intelligence platform: Harnessing the power of AI, this platform identifies skill gaps, personalizes career pathways and aligns talent development with business goals.
• Shared education savings: Create a compelling business case for tuition assistance investment by aligning your benefit program with retention and return on investment.

To further explore ways to identify skills gaps or expand learning opportunities with AI-powered skills solutions, visit ���۴�ý Workforce Solutions.��

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*Skillmore™ is trademark of Talent Mobility, LLC. Talent Mobility, LLC (dba Skillmore) is an affiliate of ���۴�ý and requires a separate agreement for its services. Visit for more information.