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Firms identify cybersecurity and cloud computing as the areas with technical skills gaps

According to a recent report from Pluralsight, a technology workforce development company, cybersecurity, cloud computing, and software development are the top areas facing the largest technical skills gaps. This trend has been consistent since 2021, with cybersecurity and cloud skills gaps remaining the most prominent, despite the increasing importance of artificial intelligence and machine learning (AI/ML) skills.

In a survey of 1,400 executives and IT professionals, 65% identified cybersecurity skills as the most lacking, followed by cloud skills at 52% and software development at 40%. Additionally, 63% of respondents indicated that cybersecurity skills were the most important to learn in the next year, followed by cloud and software development.

While the demand for these technical skills continues to grow, organizations face challenges in addressing these gaps through hiring or upskilling. According to the survey, 66% of respondents stated that hiring new tech talent takes longer or the same amount of time as upskilling current employees. Moreover, the average cost of hiring new tech talent in the U.S. exceeds $23,000 and takes 10 weeks, compared to an average upskilling cost of $5,000 per employee.

Business leaders are increasingly concerned about their ability to train employees quickly enough to meet future tech-related demands. A report from the World Employment Confederation found that 80% of respondents struggled to plan for future talent requirements, emphasizing the need for a more flexible workforce approach and investing in internal skills development.

In response to these challenges, workers are proactively seeking learning and development opportunities to enhance their skills. Demand for courses in AI, IT, leadership, and soft skills such as active listening and customer service has surged, reflecting a broader trend toward skill diversification.

However, proficiency in technology and data science skills saw a significant decline in 2021, contributing to ongoing skills gaps and tech talent shortages. The report underscores the importance for companies to invest in both high-demand digital skills and soft skills to remain competitive in a rapidly evolving workforce landscape.