Unlocking economic potential with language learning

Samantha Ball
Samantha Ball
Coworkers talking together in an office by windows
Reading time: 5 minutes

As demographic shifts and technological advancements reshape the global workforce, the gap between the skills people have and the skills they need continues to widen. This "skills chasm" is particularly evident in language learning, where traditional education systems often fail to keep pace with the demands of the modern economy.

Unlocking economic potential with language learning
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The skills chasm in language learning

Demographics and technological disruption

The aging population and declining birth rates mean fewer young people are entering the workforce, including roles that require multilingual capabilities. By 2050, 22% of the world’s population will be over 60, highlighting the need for lifelong language learning to keep older workers engaged and productive.

Also, advancements in AI are reshaping the learning and usage of languages in professional settings. Tools like language translation services and learning applications are increasing the demand for employees who can utilize these technologies and adapt to evolving linguistic tools.

By 2030, it is projected that 65% of job skills will undergo changes, including language capabilities, which will require ongoing improvements in language proficiency. In our report, How English empowers your tomorrow, 40% of survey participants expressed concern that AI could replace their jobs within the next five years. Mastery of English is considered essential for securing careers in a landscape heavily influenced by new technologies and AI.

Economic stakes and language learning

Economic growth

Enhanced language skills can significantly contribute to economic growth. For instance, a one-standard-deviation increase in cognitive skills, which includes language proficiency, is associated with a 1.74 percentage point increase in a country’s annual economic growth. This highlights the economic value of investing in language education.

Transition losses

In language learning, transition losses refer to delays in acquiring essential language skills for employment. Bridging these gaps can lessen economic losses and enhance job readiness.

Research estimates that in the US, annual transition losses reach $1.1 trillion, with a considerable amount stemming from skills gaps, including language proficiency. Our survey results show that those employees who work for a company that offers language training are more than twice as likely to say that they are very satisfied with their job than those working for companies that do not offer any language training. 

However, only 33% of learners indicate that their employer provides language training. Happier employees are more inclined to remain with their company longer, thereby reducing overall turnover costs

Learning to learn

Emphasizing learning-to-learn skills in corporate training for HR professionals can enhance efficiency in employee development. Metacognitive strategies, such as self-assessment and goal setting, help employees retain and apply new concepts and skills more effectively. By investing in and implementing solutions that address these needs, businesses can cultivate a more competent and adaptable workforce. Tools like 'Mondly by Pearson' can support their learning.

Aligning with market needs

Language learning pathways should be aligned with labor market needs. Industries such as international business, tourism, and diplomacy require specific language skills that should be integrated into educational programs. Creating adaptive and transparent pathways for language learning can help individuals navigate their careers more effectively. For help on aligning language skills with jobs, make sure to look at our GSE Job Profiles.

Flexible pathways

Establishing adaptable and clear pathways for language acquisition is crucial. This involves providing modular courses, certifications, and opportunities for real-world language practice. For instance, virtual reality training can create realistic language-use scenarios, guiding learners in determining if they should change their course. For example, Pearson has an AI-driven language training tool named Digital Language Tutor, designed to assist learners in realistic language environments.

The path forward: Investing in language learning for economic success

For HR professionals and decision-makers, the message is clear. Investing in language learning is a strategic economic imperative. Bridging language learning can enhance employee potential while driving significant economic growth and reducing transition losses. 

The future of work demands a proactive approach to language learning, ensuring that individuals and organizations are equipped with the skills they need to thrive in a globalized economy. Read the full report on the skills chasm and find out how to close it with language learning.

Get in touch about our corporate solutions

Read our blog posts 'Real-world English: How GSE Job Profiles bridge learning and work' and 'Improving employee engagement: The crucial role of language learning in business'.

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