Executive summary
Employers today require a workforce with skillsets that didn’t exist 20 years ago – artificial intelligence (AI), digital and green skills have all come to the fore. McKinsey’s 'Jobs lost, jobs gained’ report estimated that, by 2030, up to 375m, or 14% of the global workforce, would need to switch occupational categories due to automation, digital disruption and industrial change.
The future generation needs new skills, current workers need to upskill or retrain, and governments must activate their higher education institutions to enable future economic growth and help this transformation through targeted workforce reskilling. The unprecedented pace of technological advancement has accelerated the need fora dynamic response from governments in tandem with their higher education institutions.
The QS World Future Skills Index evaluates how well countries are equipped to meet the evolving demands of the international job market. It aims to empower governments to align education and skills with future demand, fostering innovation, sustainable global competition and talent development. In this report, we explore key findings and in-depth analysis from the Index. For full details, download the PDF version above.
1. Rapid industry innovation
There is a cluster of countries that are seeing their economies and future industries transform faster than the new skills adoption of their workforce. This requires reskilling of their workforce and increased investment in attracting highly skilled talent to their country.
2. Skills supply outpacing skills demand
Some countries are seeing economic stagnation despite an excess of transformational talent. Stimulus needs to be provided through research innovation and industry partnerships to drive economic growth.
3. Education key to thriving economy
There is a strong correlation between good economic performance and higher education success. We discuss what higher education must do to improve performance at a country-level.
Key recommendations
The findings of the QS World Future Skills Index are clear – innovation in a country’s higher education system and ensuring the sector’s long-term sustainability is fundamental to a growing national economy. It’s an important time for governments and higher education institutions to recognise that a huge disruption to workforce norms is on the horizon.
The potential for higher education to enable this transformation is huge – but there are private providers, online education providers and education arms of major global companies, including Google, Microsoft and Amazon, who are increasingly certifying skills and competence.
To support economies to make this workforce transition, higher education systems need to build greater agility through modular learning and curricula advancement to ensure that the skills that businesses need are available in the fifth stage of education.
Recommendations for higher education
- Establish lifelong and personalised learning paths for students.
- Implement modularised learning, advancing curricula in alignment with the skills necessary for future innovation and aligning academia to industry needs.
- Develop targeted international research partnerships aligned to local industry needs to drive research innovation and deliver economic growth.
Recommendations for governments
- Utilise the strength of higher education to attract international talent to fill short-term, high impact skills gaps within economies.
- Introduce smart and targeted immigration policy to enable these high-skilled workers to contribute to society, gaining the work-based skills to thrive on returning home.
- Connect industry and higher education’s capacity for research innovation and foster partnerships to drive economic stimulus and industrial diversification who are increasingly certifying skills and competence.
These recommendations require investment, but with a confluence of economic challenges globally, this necessary investment has stagnated. For the betterment of society, it is vital that the supply of world-class education is sufficient for the needs of innovative businesses that will help solve the climate crisis, intelligently engage AI to achieve growth and more effective processes, and drive creative solutions and digital innovation.
Matteo Quacquarelli
Vice-President of Strategy and Analytics
QS Quacquarelli Symonds
*While this report focuses on higher education's critical role in equipping the future workforce, it is important to recognise the complementary role of Further Education institutions in skills development globally. In this context, 'higher education' includes tertiary institutions offering advanced degrees, while Further Education often addresses vocational and technical skills that bridge immediate labour market needs.
What are future skills?
Industrial innovation is shifting the future of work as rapid changes take place across the world. With a huge risk of occupational displacement in the global workforce and the slowing of global economic growth What are future skills? We need higher education to drive the skills-led industrial transformation due to declining industries across major economies, countries must become more agile and prepared for a future driven by new technological automation and a transition to greener economies.

The QS World Future Skills Index is designed to assess how prepared countries are to tackle the shifting demands of the global workforce, particularly in the context of digital transformation, AI, sustainability, and the broader economic changes impacting jobs.
Skills like AI proficiency, digital literacy, and environmental sustainability will form the bedrock of the industries of tomorrow. Countries that fail to adapt risk losing their competitive edge and missing opportunities for economic growth.
The QS World Future Skills Index uses data from over 280 million job postings via QS 1Mentor, the QS Global Employer Survey, and economic and demographic statistics from the World Bank Group. The Index assesses countries across four key indicators: Skills Fit, Academic Readiness, Future of Work, and Economic Transformation. Each indicator plays a vital role in providing a comprehensive view of a country's preparedness to thrive in an increasingly skills-driven global economy.

Understand the indicators
What is Skills Fit?
Skills Fit measures how well a country’s education systems are aligning with employer demands. Understanding which country’s universities are providing graduates with the skills that employers need is key to understanding a nation’s future readiness. A country with a high Skills Fit score has an education system that is well-aligned with the needs of industry and employers, helping to close the skills gap.
What is Academic Readiness?
Academic Readiness measures how well a country is positioned to deliver the skills necessary for future industries. It is vital for a country’s higher education system to support high-quality learning and skill development. As industries evolve with the advancement of technologies and the rise of digital economies, universities need to stay ahead by providing education in fields that are most relevant to the future workforce. Countries that excel in AI, digital, and green subject areas are better prepared to face the challenges and opportunities of the evolving job market. These subjects are critical for future economic development, as they enable innovation and problem-solving in sectors that will dominate in the coming decades.
What is Future of Work?
The Future of Work indicator measures the readiness of a country’s job market to recruit for the most in-demand skills of the future.
Job listings are a strong indicator of a job market’s maturity. A high volume of job postings seeking AI, digital and green skills shows that a country has businesses that are ready to innovate, or are already doing so. The QS World Future Skills Index looks at the volume of job postings seeking innovative skills, and compares the prevalence of future skills compared to traditional skills in job listings to see how the labour market is shifting to meet the demands of future industries.
What is Economic Transformation
The Economic Transformation indicator measures how ready a country’s economy is to leverage the next wave of skills-led industrial growth.
A country's economy must be able to sustain growth in AI, sustainability and digital industries to ensure ongoing economic success. Investment in infrastructure, R&D, and workforce capabilities are crucial to drive productivity and economic growth in the chosen areas.
Key findings
The Index reveals a significant gap between nations at the forefront of skills development and those which are still emerging. Leading countries are making concerted efforts to integrate new technologies into their education systems, while emerging countries are working to address critical gaps, often lacking the infrastructure and capital necessary for rapid adaptation. The recommendations presented in this report are aimed at guiding policymakers and ministries in shaping the future of work through a focus on foundational capacity, talent development, global adaptation, and future alignment.
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- The QS Global Employer Survey with over 100,000 employers surveyed annually
- The QS World University Rankings, the most trusted brand in higher education (Google Trends, 2024)
- QS 1Mentor, with over 280m job postings analysed
UK higher education is most aligned to employer needs | Skills Fit
UK universities have a longstanding reputation for delivering world-leading skilled graduates into the workforce. However, the skills shortage in the UK is a growing issue and the country’s ability to produce top skilled graduates is not guaranteed in the future. In the UK alone, skills shortages are forecast to cost the UK economy £39bn a year from 2024 to 2027. The Index shows that countries in the Global North are progressing well in aligning academia with industry and the proportional coverage of top universities in the UK is what gives the country an edge against its competitors.
To maintain its success, UK institutions have work to do to improve scores in underlying areas including human-centred leadership, emotional intelligence, interpersonal skills, leadership, communication and teamwork.
70% of US business leaders report critical skills shortages within their organisations, impacting business performance. Despite this, the United States ranks second in Skills Fit. Although challenges exist in meeting the demand for certain skills, such as semi-conductor manufacturing, the US excels in aligning its educational outputs with industry requirements.
UK higher education is best positioned to deliver future skills | Academic Readiness
According to Deloitte, 1.8 million tech skills will be needed by 2030 if workers are to keep pace with the rate of change. As a sector, higher education is uniquely positioned to deliver high volumes of future-ready graduates. Nowhere is this more evident than in the UK.
Institutions in the UK are preparing students for successful careers in these innovative industries, with over 100 universities featured in the QS World University Rankings by Subject 2024, and many UK institutions display strong performance in AI, digital and green-related subjects.
The UK has a great history of academic performance and research innovation, but recent performance indicates a downward trajectory. While income from tuition fees has increased, it's not enough to keep up with rapidly growing expenditure. 59% of UK universities reported a financial loss in the 2021/22 academic year. This Academic Readiness score is unlikely to be maintained unless more is done to align research & curricula with industry need.

The data shows strong competition from other countries in the top 10, with only 3.3 points separating first from 10th. The Netherlands could pose significant risk to the UK's standing. Globally, the Netherlands has the highest score in Academic Readiness' Green sub-indicator, and shows strong performance in preparing graduates for green jobs. Green talent is going to be in high demand in the future, with one in two jobs lacking the required green talent by 2050.
India and the US are best primed to recruit graduates into AI, digital, and green jobs | Future of Work
Ranking just behind the US in second place, India is one of the leading nations in contributing to the future of work. The IBM Global AI Adoption Index – Enterprise Report highlights India as a leading nation in the active deployment of AI in business operations, with a notable 59% of companies actively using AI. This aligns closely with the Future of Work indicator, where India scores 99.1. Such a high score reflects India’s readiness to integrate AI into the workforce, suggesting a strong market for skilled graduates.
Despite a global decline in venture capital (VC) funding, India has maintained its status as the second-largest destination for VC and growth funding in the Asia Pacific region. This resilience underscores the country's robust investment ecosystem, which is crucial for fostering innovation and creating future-ready job opportunities
South Korea's economy is most ready to realise the next wave of skills-led industrial growth | Economic Transformation
Aligning with trends seen elsewhere in the QS World Future Skills Index, countries in the Global North perform strongly in economic transformation. Low unemployment rates, high labour productivity, and high Gross Domestic Products (GDPs) all drive strong performance for Global North countries.
With perfect scores in the three sub-indicators – Economic Capacity, Workforce Readiness and Future-Oriented Innovation and Sustainability – South Korea has the economy that is most ready for the next wave of industries and innovations.
South Korea has skillfully reshaped its economy, emerging as a global leader in high-tech industries like semiconductor production and IT, while managing the decline of traditional sectors like mining. The nation’s focus on Gross Fixed Capital Formation (GFCF) has been instrumental in building robust infrastructure and driving productivity, forming a sturdy backbone for its advanced industries.
The semiconductor sector has become a pillar of South Korea’s economic strength. Major players like SK Hynix and Samsung Electronics have positioned the country at the forefront of the global market. SK Hynix, for example, has committed to a USD$6.8 billion investment in a new plant to meet the soaring demand for AI chips and plans to develop a significant semiconductor cluster in Yongin6.

Such developments reflect South Korea’s focused ambition to remain a leader in the semiconductor field, showcasing a strategic shift from traditional industries to high-tech. Yet, South Korea shares a similar challenge with the US: a shortage of skilled workers in the semiconductor industry. Overcoming these gaps calls for renewed recruitment initiatives and a rethinking of workforce development to keep pace with the industry’s demands. As technology rapidly advances, South Korea’s commitment to GFCF and its proactive support for high-tech sectors have secured its status as a leading global player. Addressing workforce challenges will be crucial to preserving this edge in the competitive semiconductor market.
There is a clear positive correlation between South Korea's GDP and its tertiary education graduation rates over the period from 1998 to 2022. During this time, South Korea's GDP (measured in purchasing power parity) experienced significant growth, while the proportion of young adults (aged 25-34) attaining tertiary education increased steadily. In 1998, the tertiary graduation rate was approximately 30%, rising to nearly 60% by 2022.
This trend suggests that the country's substantial investment in higher education has been instrumental in fostering a skilled workforce. South Korea's emphasis on education has been a cornerstone of its economic development strategy, enabling it to capitalise on innovation and advanced industries for sustained prosperity.
Global analysis
Skills demand vs. skills supply
The rapid industry innovation cluster
30% of countries in the Index are seeing their industries evolve at a rate that is faster than their workforce can adopt new skills.
The workforce readiness cluster
The remaining 70% of countries fall into a cluster where the workforce potential outstrips the pace of economic and industrial innovation.

Transformation gaps
Countries with skills demand which outpaces the skills supply have a transformation gap – they have a high demand for skills but the limited skills supply means they are not able to transform their economies. As a result, even with a skilled workforce and robust academic systems, they may still experience a gap due to rapid economic growth surpassing their current talent levels. Short- and medium-term gap from growing, including industry-wide reskilling policies and lifelong learning.
For countries with a talented workforce which outpaces the skills demand, the transformation gap means that there is a large "reserve" of talent potential that isn’t being fully utilised because there aren’t enough suitable jobs or growing industries. To solve positive transformation gaps there is often a need for economic policies, research investment, or industry partnerships to create more opportunities and put this talent to use.
What can higher education do?
Working with government
Enable medium-term policy development around workforce reskilling through the deployment of innovative new products across lifelong and personalised learning paths for at-risk workers, introducing modularised learning and advancing curricula to adapt to the skills needs of tomorrow’s workforce. In the short-term, support governments in closing identified industry skills gaps through the attraction of international talent.
Working with industry
Drive industry innovation through establishing international research partnerships targeted to the areas of aligned industrial need. Feed research innovation to industry with industry partnerships that drive commercial growth. Work with industry to advance the curricula to deliver relevant skills adoption.
Supporting students to thrive
Innovate by designing personalised, flexible pathways that support lifelong skills development, ensuring learners can continuously adapt to changing career landscapes and societal needs. Advance academic curricula by modularising learning experiences to empower individuals with the relevant skills required for success in today's dynamic world.
Higher education must align to business demands and close skill gaps
In the QS World Future Skills Index, the average Skills Fit score is just 58.8, showing there is still room for higher education sectors globally to improve their alignment between industry and academia. 85% of countries have a Skills Fit score below 80.