Companies are increasingly using skills development and continuous learning programs as a tool to attract and retain workers as labor shortages and rapid technological change reshape global hiring markets, according to a report by PwC Middle East titled “Anchoring Degrees, Accelerating Skills: Policies Towards A Stackable, Skills First Ecosystem.”
The report said employees, particularly in fast-growing digital economies, are placing growing importance on training and career development opportunities as industries adapt to artificial intelligence, automation and changing workforce demands.
In the United Arab Emirates, workers increasingly rank skills acquisition and career development among the top reasons for choosing employers, ahead of factors such as workplace culture, flexibility and corporate reputation, the report said. Compensation remained the leading factor, though skills development ranked closely behind.
The findings highlight how employers are shifting workforce strategies as competition intensifies for workers with AI, digital and sustainability-related skills.
According to the report, 97% of employers in Singapore plan to prioritize upskilling as a core workforce strategy, far above the global average of 43%.
PwC said companies are increasingly embedding credential-building and training into day-to-day work rather than treating learning as a separate activity. The report urged employers to redesign hiring, promotion and pay systems around verified competencies and stackable credentials instead of relying solely on traditional academic qualifications.
The study also recommended that businesses invest in “team-level skills sprints,” workplace mentoring and competency-based assessments to improve internal mobility and workforce adaptability.
The report comes as employers globally grapple with widening skills gaps linked to AI adoption and digital transformation. PwC said businesses increasingly view shortages in verified technical skills as one of the biggest barriers to productivity growth and competitiveness.
Governments in Gulf economies including the UAE and Saudi Arabia are investing heavily in lifelong learning and AI-focused training programs as part of broader economic diversification strategies.
PwC said employers that fail to prioritize workforce development risk losing talent in sectors where employees increasingly expect continuous reskilling opportunities as part of long-term career progression.
