A P R I L  2 0 2 4    |    I S S U E   1 0 Building Digital Literacy and Skills to Reflect the Needs of the Job Market Angela Elzir & Matteo Morgandi EDITORIAL Welcome to the tenth edition of the Skills4Dev Knowledge Digest! This issue discusses policies to build digital literacy and skills, as well as complementary interventions for their application in the job market. Advancements in digital technology are impacting how firms operate, creating new business models and opportunities, and affecting workforce needs and occupational profiles. The digital economy is growing six times as fast as its traditional counterparts and is estimated to reach up to 25 percent of GDP globally (Strategy & Middle East, 2022). According to the Future of Jobs Report, 83 million jobs will be displaced by 2025, while 69 million jobs will be created; and 44 percent of workers’ skills will be disrupted in the next five years (World Economic Forum, 2023). In this constantly evolving digital landscape, the traditional employer-employee relationship and full-time employment are decreasingly becoming the norm. The traditional placed-based employer- employee relationship is being challenged, as various modalities of gig work are becoming commonplace, whether location or online-based, including microwork for poor and vulnerable groups. Globally, almost one quarter million youth are engaged in online gig work and the trend is increasing. The Online Labor Index (OLI) indicates a 41 percent increase in demand for gig work between 2016 and Q1 2023 (S4YE, 2023). Such rapidly evolving job market is affecting the content of labor demand, with employers now increasingly requiring at least some degree of digital and 21st century skills from new hires. A recent report by the National Skills Coalition analyzed 43 million online job postings in the United States to assess demand for digital skills and found that 92% of jobs required some type of digital skills (National Skills Coalition, 2023). Now more than ever, it is necessary for workers to have, at the very least, basic “digital skills” and “digital literacy” and, in most cases, intermediate to advanced digital skills. In addition, cognitive skills, such as analytical thinking and creative thinking, and the skills “to continuously learn” remain the most sought-after ones by employers when navigating the evolving workplaces. However, inequality and inequities in technology access, or the digital divide, alongside challenges to accessing digital education and skilling initiatives, persist. A first role for policymakers is to develop systems that can dynamically assess digital skill needs and gaps, and inform the provision and content of skills development programs. Traditional surveys of employers help to identify workforce requirements, but typically stop short of providing information with the level of granularity needed to inform skills development programs. Such approaches can be complemented with big data analyses of Online Job Vacancies (OJVs), which allow to identify the specific technical skills that are in-demand across occupations. Such data- driven approach allows for real-time, dynamic insights and enables policymakers and employment offices to tailor strategic workforce planning, and educators to adapt training programs (ILO, 2020). For instance, since 2015 the European Centre for the Development of Vocational Training (Cedefop) analyzes and systematizes OJVs to identify skill gaps, and such information is meant to inform re- skilling and up-skilling programs, and to inform career guidance to job seekers. Second, providers of digital skills training need to adjust the content to ensure it addresses the needs of employers, tailoring it to either the global market or the local economy. Evidence shows that once a skills gap analysis is conducted, tailoring training programs accordingly is a key success factor of training programs (Stöterau, Kemper, Ghisletta 2023). For instance, when analyzing the LinkedIn’s data on skills in MENA countries, programming languages such as Bootstrap, JavaScript stood out as the most characteristic skills found in Morocco, Lebanon, Jordan, and Egypt, whereas Qatar and the United Arab Emirates ranked Microsoft Azure as the number one most found skill. These skills needs differences can also differ within the same country; for example, in Lebanon, mobile phone repairment is demanded, however the skills needed for this job in the capital Beirut, where individuals have higher purchasing power, seem to focus more on the repairment of smartphones; however, in the north of the country, i.e., the poorest area, smartphone use is much lower, and therefore, skills needed would focus more on non-smartphone repairment. Such context-specific approach remains relevant also for the delivery of digital skills. In fact, skills-based hiring is particularly on the rise in industries where talent acquisition is more challenging for firms, such as in tech companies. In general, firms are increasingly looking for confirmation of skills acquired rather than university diploma (Sigelman, M., Fuller, J., Martin, 2024). One way to ensure that the content of digital skills programs is well-aligned with the rapidly evolving private labor demand is to partner with tech industry leaders. Evidence from various meta-analyses show that programs implemented by the private sector, or in strong partnerships with the private sector, seem to perform better in producing labor market outcomes. Tech leaders such as Microsoft, Oracle, IBM, Amazon Web Services, and others have the knowledge to design the content of short-term digital skills courses that match the needs of the private sector companies that already use their products (e.g., cloud services, software). Their course content is updated regularly, some of them as often as every two weeks, to ensure alignment with the latest development of their technological products. Policymakers and service providers can take advantage of such training content to establish new courses without high prior investments. Offering courses that allow to obtain certifications provided by tech industry leaders is also important, as these are highly valued by employers (Pearson VUE, 2021). In fact, for some training programs, training completion alone may not be enough, and certification could be important to signal skills acquisition (Stöterau, Kemper, Ghisletta 2023). A World Bank team recently piloted the delivery of digital skills training for vulnerable youth in Lebanon, through strategic partnerships with the tech industry. In 2022, the World Bank partnered with a local private sector entity and community to launch Forward MENA, an employer-focused digital skills development program. The initiative focuses on addressing employer needs by providing market-relevant digital skills trainings, linked to industry certification. It targets both the flow of workers (i.e., partnering with schools and universities) and the flow (working age population for up- and re-skilling). It relies on partnerships at various levels, with local employers for jobs and skills needs, academic institutions to raise awareness on today’s job market needs, local NGOs to reach vulnerable youth, and tech companies for training content and certification. A market study was first conducted in the planning phase defining the skills and training needs but also highlighted that employers value certifications to make hiring decisions. Then, one of the evaluated activities aimed at partnering with SimpliLearn to deliver three digital skills training courses to fill the most in-demand jobs. Early results of the pilot are promising and yielding the first lessons learned for scaling-up. At the end of the training, a three-month post-completion survey was conducted with beneficiaries and results were compared to the baseline. The analysis shows that the program led to an 18% increase in the employment rate amongst beneficiaries, earnings increased by 94% of the average annual salary before the training, and the unemployment rate amongst beneficiaries dropped by 18.50% after training. The project’s training component resulted in an economic rate of return (ERR) of 50% (Walker and Robalino (2017) methodology, Skilling Up Lebanon ICR, 2023). Some of the elements of success include the efficient delivery system and the focus on market-oriented skills. The project scale-up will now be subject to a full-fledged impact evaluation. We would like to hear from you! Please send us your ideas, suggestions, questions, or collaboration opportunities at skillsgsg@worldbankgroup.org. Learn more about what the GSG can do for you at the end of this digest. Happy Reading! TABLE OF CONTENTS 1. Featured Works. Recent blogs/publications on building digital skills and training interventions. 2. Essential Reading. The must-reads/favorite academic reads of our guest editor. 3. What’s Brewing at the WBG? World Bank's work around the month's topic. 4. Additional Publications. Other publications on digital skills and training interventions. 5. Help Desk. Various resources to keep you up to date and support your skills-related work. 1. Featured Works. Recent blogs/publications on building digital skills and training interventions. 2. Essential Reading. The must-reads/favorite academic reads of our guest editor. 3. What’s Brewing at the WBG? World Bank's work around the month's topic. 4. Additional Publications. Other publications on digital skills and training interventions. 5. Help Desk. Various resources to keep you up to date and support your skills-related work. Sign-up to receive future Skills4Dev editions! Subscribe here FEATURED WORKS ON BUILDING DIGITAL SKILLS AND TRAINING INTERVENTIONS Putting Skills First OECD Skills Outlook Closing the Digital Skill Opportunities for Building 2023: Skills for a Resilient Divide: The Payoff for Workers, Efficient and Equitable Green and Digital Business, and the Economy Labour Markets Transition Amanda Bergson-Shilcock and World Economic Forum | OECD | Report | 2023 | Global Roderick Taylor with Nye Hodge | Report | 2024 | Global Report | 2023 | USA This report identifies five This edition of the Skills This report takes a first-ever specific opportunities for Outlook highlights the look at the demand for digital intervention where the gains importance of supporting skills in the U.S. economy, as from skills-first solutions are individuals in acquiring a wide measured by a dataset of 43 most likely for employers and range of skills, at varying million “Help Wanted” ads workers alike. It also highlights levels of proficiency, to posted during 2021. Among the a diverse set of Skills First promote economic and social findings, there is an “Lighthouses”, selected by an resilience. The report overwhelming demand for independent expert panel. The acknowledges the role of digital skills in the labor market, report concludes by offering attitudes and dispositions in with 92 percent of job ads key takeaways regarding enabling skills development requiring digital or likely digital success factors in implementing and effective skills use.  skills. skills-first approaches. ESSENTIAL READING Future of Job Report 2023 The Impact of Vocational Trends Mapping Study: World Economic Forum | Training Interventions on Digital Skills Development Report | 2023 | Global Youth Labor Market Outcomes: in TVET Teacher Training A Meta-Analysis Gita Subrahmanyam | Report | Stöterau, J. et al.  | Preprint Paper 2022 | Global | 2022 | Global This fourth edition of the series continues the analysis of employer expectations to This paper synthesizes the The purpose of this study is to provide new insights on how empirical evidence of youth- map trends and challenges in socio-economic and technology targeted vocational training the training of TVET teachers trends will shape the workplace interventions on labor market and trainers in the context of of the future. It offers insights outcomes. Findings reveal that digitalization, and to identify into the labor markets vocational training has an successful innovative TVET transformations and unpacks economically meaningful teacher training efforts. The how businesses are expecting to impact on youth labor market study builds on the  UNESCO- navigate these changes from outcomes. Also, country income UNEVOC Study on the Trends 2023 to 2027, leveraging a level does not predict effect size Shaping the Future of TVET unique cross-sectoral and magnitude. Finally, the time- Teaching and complements its global survey of Chief Human profile and mechanism of enquiry on the digital skills Resources, Chief Learning successful trainings differ required by TVET teachers and Officers and Chief Executive between High-income countries trainers to fulfil their role in Officers of leading global and Lower-/Middle-income preparing learners for the future employers and their peers. countries. of work. WHAT'S BREWING AT THE WBG? Gina Mata and Gina Al- Skilling Up Lebanon: An Analyzing Digital Skills Umma: A Rights-Based Opportunity to Lower Gap in MENA Countries to Approach to Digital Skills Unemployment Rates in Inform An Upskilling Training for Women and Lebanon amid a Major Initiative Girls in FCV Settings Financial Crisis? Elzir, A. et al. | Article | 2023 | Mboob, I. et al. | Report | 2023 | Daher, M. et al. | Blog | 2022 | MENA Nigeria Lebanon With support from the Digital This initiative, co-launched by Digital technologies are Development Partnership and the Beirut Digital District Talent reshaping work and traditional the Human Rights, Inclusion and Development Hub and the jobs. The World Bank Human Empowerment Umbrella Trust World Bank Group, aims to Development Practice Group Fund, the World Bank has develop a self-financed, private collaborated with LinkedIn to launched Gina Mata, Gina Al- sector-led digital skills program study the labor markets in the Umma, an inclusive digital to increase access and improve Middle East and North African skills training pilot in Northern the digital skills of children, region, and to analyze the most Nigeria. The pilot aims to apply youth, and workers in relevant and characteristic a rights-based approach to Lebanon. It works closely with skills according to selected digital skills training targeting major employers in Lebanon to industries and occupations in disadvantaged girls and identify gaps in digital skills to the tech and digital sector. This unemployed women in Northern then develop a series of micro- analysis works to inform Nigeria. Beneficiaries will receive credential trainings linked to policymakers, employers, the digital skills and life skills industry certification, enabling World Bank and its partners in training, along with access to the young Lebanese to find better developing tailored training Internet and digital devices.  employment opportunities. programs for people to thrive in this digital age. ADDITIONAL PUBLICATIONS Learning to Build Back Better Futures for Education: Lessons from Educational Innovation during the COVID-19 Pandemic Fernando Reimers and Renato Opertti | Book | 2021 | Global This book attempts to contribute to the development of operational strategies for change in education that will help prepare students for the future, while addressing the impact of the COVID-19 pandemic and making education systems more resilient to future disruption. It identifies and studies examples of educational innovation that emerged during the pandemic and that present pathways for transformation. 2021 Value of IT Certification | Employer Report Pearson VUE | Report | 2023 | Global This report provides a deeper look at the importance and impacts of IT certification for organizations. More than ever, the IT community places a great deal of value on certification and credentialing. 60% of managers interviewed stated that job applications with IT certifications are significantly more likely to be reviewed. Defining the Skills Citizen will Need in the Future of Work Dondi, M. et al. | Article | 2021 | Global The research, led by McKinsey Global Institute, identified a set of 56 foundational skills that will benefit all citizens and showed that higher proficiency in them is already associated with a higher likelihood of employment, higher incomes, and job satisfaction. The need for manual and physical skills, as well as basic cognitive ones, will decline, but demand for technological, social and emotional, and higher cognitive skills will grow. The Future of Work after COVID-19 Lund, s. et al. McKinsey Global Institute | Report | 2021 | Global This report on the future of work after COVID-19 is the first of three MGI reports that examine aspects of the postpandemic economy. It assesses the lasting impact of the pandemic on labor demand, the mix of occupations, and the workforce skills required in eight countries with diverse economic and labor market models: China, France, Germany, India, Japan, Spain, the United Kingdom, and the United States. Together, these eight countries account for almost half the global population and 62 percent of GDP. The Feasibility of Using Big Data in Anticipating and Matching Skills Needs International Labor Organization | Report | 2020 | Global This publication collects together the contributions presented during the ILO workshop “Can we use big data for skills anticipation and matching?”, which took place on September 2019 at ILO. The discussions during the workshop considered the feasibility of using big data in the context of skills anticipation and matching, and the potential and the limitations of big data in skills analysis. Skills-Based Hiring: The Long Road from Pronouncements to Practice Sigelman, M. et al. | Report | 2024 | Global More employers are prioritizing candidates’ skills over traditional credentials. However, does eliminating degree requirements lead to increased hiring of candidates without degrees? This new report, based on a study of 11,300 roles at large firms, spanning at least one year before and after the removal of degree requirements, revealed that, on average, firms only saw a 3.5 percentage point increase in the hiring of workers without a BA. Digitalization and Employment: A Review Charles, L. et al. International Labor Organization | Report | 2022 | Global This report is a scoping review of the publicly available literature which examines the new labor market opportunities created by digital transformation. It identifies gaps and potential avenues for future research. It also explores how some policies may be designed to offset the negative impacts of labor market transformation on individuals and communities. Why ‘Digital Literacy’ is Now a Workplace Non-negotiable Alex Christian | Blog | 2022 | Global This article highlights the critical importance of digital literacy in today's workplace environment. It explores how digital skills have become essential for career success and organizational competitiveness. By discussing the evolving nature of work and the increasing reliance on technology, it emphasizes the necessity for individuals and businesses to prioritize digital literacy. The Future of Education for Digital Skills EIT Digital Makers & Shapers | Report | 2021 | Global This report is part of the EIT Digital Makers & Shapers report series. It tackles the issues of digital skills and digital specialism considering the supply of broadly defined education and training presented by both public and private institutions, identify the main gaps, and extract from them foresight scenarios. Working Group on Education: Digital Skills for Life and Work Atchoarena, D. et al. | Book | 2017 | Global The report underlines the importance of steadfast commitment to digital skills development; offers recommendations on supporting the sustainable and equitable development of digital skills for all stakeholders; and includes a collection of case studies which examine how different organizations have forged digital skills for life and work across the world. Training Needs in the Further Education Sector – Digital Skills Report Education and Training Foundation | Report | 2018 | England This is a report on survey-based research into the training needs of people who work in the further education (FE) sector and training organizations in England. The findings show that institutions give a moderately high priority to training related to digital technologies, which resulted in a little over a quarter of FE staff receiving training in this area last year. Demand-Driven Skills Training and Results-Based Contracting: Lessons for Youth Employment Programs World Bank | Report | 2020 | Global This report reviews the literature, identifies project examples and derives lessons for the design and implementation of both Demand-driven training (DDT) and results-based contracting (RBC). This review aims to identify the most effective ways to deliver these programs and provide general lessons on their design and implementation. THE EDITORS Angela Elzir Matteo Morgandi  Skills4Dev Guest Editor Skills4Dev Editor Social Protection Specialist, Co-Global Lead for Labor and Skills Global Solutions Middle East and North Africa, Group, Social Protection & Jobs GP, World Bank  World Bank  SKILLS GSG - HELP DESK Visit our website and learn more about our work on skills. Access the previous Skills4Dev Knowledge Digest editions:           > March 2024 | Information Interventions           > December 2023 | Digital Skills           > October 2023 | VET Teachers           > September 2023 | Formal TVET                    > June 2023 | Foundational Skills           > May 2023 | Socioemotional Skills                     > April 2023 | Global Healthcare Workers           > March 2023 | Career Guidance           > February 2023 | EdTech for TVET Receive updates about events organized by the Skills GSG by signing up here. ✅ Sign up to receive future editions of the Skills4Dev Knowledge Digest. Do you have any collaboration opportunities, want to share your recent publication, or have a skills-related question? Contact us at skillsgsg@worldbankgroup.org. Key resources to support the skills-related work within the WB community (World Bank staff only) Skills GSG intranet site (FURL: skills/) Events (material and recordings)  Thematic Knowledge Digest Archive Consultant Roster ⏰ Leads Office Hours with Skills Global Questions & Answers CONTRIBUTORS This knowledge digest is a product of the Skills Global Solutions Group, co-led by Education Global Practice and Social Protection & Jobs Global Practice.  This edition has been coordinated by Judith Perez (Skills GSG Community Manager). Copyright © 2024 World Bank Group, All rights reserved. Our mailing address is: World Bank Group - Skills GSG · 1818 H Street NW · Washington, DC 20433 · USA