Demand for digital skills on the rise

MANILA, Philippines — Over 60 percent of employers has noted an increase in demand for new hires with digital skills in the past five years, according to a report of the Asian Development Bank (ADB) and online professional network LinkedIn.

The report titled “Digital Jobs and Digital Skills: A Shifting Landscape in Asia and the Pacific” showed 64 percent of employers in the Philippines are convinced that demand for digital skills has increased in the past five years.

Aside from the Philippines, employers in Bangladesh, India and Indonesia, as well as in the US as benchmark country, were surveyed to assess demand for digital skills.

Rising demand for digital skills was highest in Bangladesh with 90 percent of employers saying demand for digital skills has increased, followed by India with 79 percent, US with 75 percent, and Indonesia with 67 percent.

Across all the five countries, 75 percent of the employers reported an increase in demand for basic and advanced digital skills in the past five years.

Employers in the five countries, on average, reported that eight of the last 10 candidates hired  needed to have at least basic digital literacy and skills, while four of the last 10  hires should have advanced digital skills.

In the Philippines, six of the last 10 employees hired were required to have basic digital skills.

This is lower than the nine of the last 10 employees hired that should have basic digital skills in Bangladesh, and eight out of  the 10 last hires in India, Indonesia and the US.

When it comes to advanced digital skills, two of the last 10 hires in the Philippines were required to have these skills.

In Bangladesh, five out of 10 last hires need to have advanced digital skills, while India, Indonesia and the US had four out of 10 last candidates hired required to possess such skills.

For the period of September 2020 to February 2021, the ADB and LinkedIn report showed the  top three digital skills in demand in the Philippines are JavaScript, SQL (Structured Query Language) and HTML (Hypertext Markup Language).

In response to the increased demand for digital skills, 68 percent of all surveyed employers said they are providing digital skills training to their employees.

In the Philippines, 58 percent said they have digital skills training for their employees.

Other countries covered by the report had a higher percentage of employers providing digital skills training to their workforce with the US at 80 percent, Bangladesh at 64 percent, Indonesia at 73 percent, and India at 65 percent.

Collaboration between industry and trainers, however, was weak among all the countries surveyed with only 38 percent of employers saying they have partnerships with an external provider of training.

In the Philippines, the percentage of employers with links with external providers of training is only 33 percent.

When it comes to the proportion of employees that have undergone digital training, the report showed the percentage is at 46 percent in the Philippines, higher than India’s 39 percent, but lower than the US at 52 percent, Indonesia  at 56 percent, Bangladesh at 61 percent. and the overall average for the region at 51 percent.

Employers in the Philippines, Bangladesh and Indonesia cited budgetary constraints and difficulty in identifying suitable training partners as challenges to upskilling and reskilling the workforce.

In addition, employers cited the lack of motivation and absence of a growth mindset among employees, which lead to passive participation in training programs.

With the digital economy accelerating in Asia and the Pacific and e-commerce seen to reach $2 trillion by 2025, ADB Sustainable Development and Climate Change Department director general Bruno Carrasco said it is important to invest in digital skills and talent.

“As digital skills and credentials grow in prominence, we must ensure that education systems are helping to narrow the digital divide for disadvantaged or marginalized people – and not widening them,” Carrasco said.

For his part, Dave Woodward, vice president, regional general counsel and head of public policy for APAC at LinkedIn said the pandemic changed the way people work and the digital transformation, which led to a demand for digital jobs and digital skills will continue.

“It’s critical for businesses to adopt a skills-based approach to hiring and developing talent. Workers must also cultivate a growth mindset and embrace lifelong learning. This is how we’ll continue to create opportunities for every member of the global workforce,” Woodward said.