Skills, not job titles, are the new metric for the labour market

The rise of tech is currently transforming the labour market, leading to the automation of some jobs and tasks on the one hand and the emergence of new kinds on the other. Proactively preparing for this new reality requires an in-depth, granular understanding of these changes and their impact on jobs and employment. LinkedIn data is able to provide additional insight on this by taking a skills-based approach to labour-market analysis.

Skills are the new currency in the labour market. Skills indicate demand and supply at a more nuanced level than occupations, whose required expertise and skills are changing increasingly quickly, and degrees, which are often already outdated by the time they are obtained. The current pace of change requires following the direction of a skills-based, rather than degree-based labor market, which is a much more dynamic variable. Using skills as a variable of analysis provides a powerful tool in helping policymakers prepare for the future while building resilience in the present day.

Based on these shifts, LinkedIn has developed the Skills Genome — a new metric, which allows us to harness that analytical power to gain a more granular understanding of labour market trends and developments. Using skills information provided by LinkedIn’s Economic Graph, a digital representation of the global economy based on data generated from 630 million members with more than 35,000 skills globally, the metric allows us to define and analyse the unique skills profile of various segments of the labour market. We can use it to identify those skills that are more prevalent in one segment compared to others. These segments can include geography (e.g. a city), an industry, a job type (e.g. data scientists), or a population (e.g. women).

In China, for example, we examined the dynamics of digital skills across two of the most economically active and open regions: Guangdong-Hong Kong-Macao Greater Bay Area and Yangtze River Delta. In a report on digital economy and talent development in the former, we found that China’s Greater Bay Area has an overall net inflow of talent equipped with digital skills, and Shenzhen is a digital talent hub in the Greater Bay Area. We also found that talent in the region mainly majored in finance and technical fields of study, and possesses general-purpose skills such as project management and leadership, with a relatively low level of integration of digital skills. Soft skills like management, leadership and negotiation rank higher in this region, regardless of high-level talents or digital talents.

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