Labor Market Forecasts
According to employers' projections, the global labor market will be most influenced in the next five years by technology development, demographic trends, geopolitical fragmentation, economic uncertainty, and climate change. As a result, 59% of employees worldwide will need to acquire new skills in order to continue in their current profession or to transition to a new career.
The changes in the Baltic States are expected to be even more significant. For example, Latvian employers predict that by 2030, 70% of workers will need to upgrade their qualifications and acquire new skills.
Furthermore, 79% of organizations in the Baltics identify the gap between current and future skills as the biggest barrier to business growth. Interestingly, fewer employers are concerned about challenges in attracting candidates.
The most in-demand professional skills over the next five years in the Baltics are expected to be those related to artificial intelligence, big data, networks, and cybersecurity, along with general technological literacy. Curiosity, willingness to learn, resilience, and adaptability will be among the top general competencies in demand.
Globally, the fastest-growing job categories are expected to be those in technology, particularly for specialists in big data, artificial intelligence, programming, and engineering. On the other hand, administrative jobs that require narrow skill sets and are easily automated will see the biggest decline. Despite the reduction of certain roles, the number of jobs worldwide is expected to continue increasing, with sectors such as agriculture, construction, food processing, and logistics remaining among the largest employers. The Baltic region is also expected to see an increase in job numbers.
Two-thirds of the companies surveyed are concerned that the availability of talent will continue to worsen, signaling growth ambitions.
Interpreting These Insights and What to Do Next
Recommendations for Employees
In my opinion, the most important conclusion of the report is that companies are still planning for growth and job creation. This outlook fosters an overall sense of optimism for the future. Jobs will remain, as artificial intelligence will not replace employees, but only specific tasks.
In the Baltics, this is even more pronounced, as employers will increasingly focus on attracting a capable workforce due to its scarcity, which offers certain advantages.
Another piece of good news is that these advantages can be enhanced by investing in the improvement of your qualifications and the acquisition of additional skills. First, take time to consider how your current profession might evolve in the future. It’s worth exploring available online resources, discussing your thoughts with colleagues and managers, and potentially incorporating AI into brainstorming sessions. Your personal forecast doesn’t need to be perfect, as there are many unknown factors, and it’s impossible to predict the future with certainty. The real value of this exercise lies in the practice of envisioning different scenarios and focusing on events that can help you better understand emerging trends. Secondly, based on a potential scenario, you should set a goal to acquire a new skill that will be valuable in the future. This doesn’t need to be a daunting plan for higher education or expensive courses. In fact, it’s often better to start with small steps—incorporate a mini change into your work routine, read an expert article to support your professional growth, take an online course on a relevant topic, learn a new IT tool, or experiment with AI. As circumstances change, we often learn new skills without even realizing it. Being aware of and managing this process will provide a significant advantage in navigating future labor market changes, as it will help strengthen valuable qualities like curiosity, a desire to learn, and, with that, flexibility and resilience.
Recommendations for Employers
To ensure the competitiveness of their companies, the first step for employers is to identify which skills are critical both now and in the future.
A previous ERDA study on skill development approaches in the Baltics found that less than one-third of companies strategically plan for employee development. From my experience talking to HR managers, this situation has not changed.
Few employers can confidently state which competencies are essential to maintain or develop within their company. The ability to identify 3 to 5 key skills for different employee groups, including those that will be important in 5 years, is critical for promoting organizational growth and necessary gradual transformation.
The second step is to create a targeted development plan for these skills, including regular progress assessments. While such plans for developing priority areas with clear key performance indicators are standard in core business processes, they are often lacking in the training and development field. At this stage, it's also crucial to evaluate which development methods are most appropriate for each skill—whether that’s providing necessary work experience, coaching, mentoring, micro-e-learning, or traditional face-to-face training—and to find suitable solutions. The good news is that many companies have access to state-subsidized programs, such as those for acquiring digital skills, which significantly reduce the investment required .
The third step is to foster a learning culture that supports employees who are eager to grow and strengthens their community. Many successful examples exist in both local and international organizations in Latvia, where employees are offered e-learning platforms, opportunities to train others, and mentoring roles. The main challenge here is to support individual development plans for employees while maintaining focus on the key competencies that are critical for business operations and growth.
Is the need for 70% of workers in Latvia to acquire new skills a lot or a little? It’s hard to say. Perhaps, in the last five years, two-thirds of employees have already acquired new skills. Most likely, this is true, and the latest
World Economic Forum's report is not calling for more action but rather for more intentional, effective, and timely learning.
The question is whether we can learn smarter—more consciously, effectively, and in advance—so that a smaller number of highly skilled professionals in Latvia will be ready for the future. I believe we absolutely can.
1. TheFuture of Jobs Report 2025 | World Economic Forum
https://www.weforum.org/publications/the-future-of-jobs-report-2025/
2. Learning and Upskilling in Baltics 2021 | ERDA
