Productivity Increase Depends on Lifelong Education, Study Reveals
The COVID-19 pandemic has caused significant economic disruption, but a new study by the New McKinsey Global Institute (MGI) suggests that global productivity growth could increase by at least one percent in the period to 2024. This growth could drive an increase in per capita GDP ranging from about $1,500 in Spain to about $3,500 in the United States.
The study, which focused on productivity growth potential in the United States, France, Germany, Italy, Spain, Sweden, and the UK, emphasizes the importance of reskilling, upskilling, and lifelong learning in realizing this potential. According to the MGI, these sectors could see a substantial increase in productivity growth over the period to 2024.
Key sectors expected to experience the largest productivity growth from 2020 to 2024 include those that are undergoing significant technological transformation and strategic action by standout firms. While the exact sectors are not explicitly listed in the provided search results, insights from McKinsey generally highlight technology-driven industries, energy transition-related sectors, and mining and natural resources as critical areas of focus for productivity improvements.
The energy sector, including renewable energy and mining for essential minerals like lithium and uranium, is expected to see productivity growth fueled by new supply chains and strategic asset management. The technology sector, especially areas involving AI and digital transformation, is a major arena for productivity gains as firms adopt advanced technologies and optimize operations.
The shift to online channels and automated production processes, a response to the challenges posed by the COVID-19 pandemic, has helped support productivity during this uncertain time. This shift has also sped up decision-making processes and been adopted by many leaders and organizations globally.
In addition to technological advancements, the MGI study underscores reskilling, upskilling, and lifelong learning as crucial enablers for realizing productivity growth potential. To gain full benefits from technologies such as generative AI, firms and economies must focus not only on deploying technology but also on improving human capital through reskilling and upskilling. Continuous learning, including curiosity-driven exploration and cross-disciplinary skill development, helps workers and leaders adapt to rapidly evolving industry demands, preventing burnout and fostering innovation. Lifelong learning ensures that workers remain productive contributors as industries transform, making it a strategic priority to sustain and amplify productivity gains over time.
In conclusion, technology- and energy-related sectors are leading in predicted productivity growth through 2024, driven by bold strategic actions and technological adoption. Reskilling, upskilling, and lifelong learning are indispensable to fully unlocking this growth by enhancing workforce capabilities and supporting continuous innovation. As the world continues to navigate the challenges posed by the COVID-19 pandemic, these sectors are poised for significant growth and development.
[1] McKinsey & Company. (2021). Productivity and the pandemic: The urgent need to act. Retrieved from https://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/productivity-and-the-pandemic-the-urgent-need-to-act
[2] McKinsey & Company. (2021). The future of work after the pandemic: Navigating the next normal. Retrieved from https://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/the-future-of-work-after-the-pandemic-navigating-the-next-normal
[3] McKinsey & Company. (2021). The future of work: Automation, AI, and the rise of the agile organisation. Retrieved from https://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/the-future-of-work-automation-ai-and-the-rise-of-the-agile-organisation
- To fully unlock the predicted productivity growth in technology- and energy-related sectors, it's essential to focus on improving human capital through reskilling, upskilling, and continuous learning.
- As industries continue to evolve, lifelong learning is crucial to ensure that workers remain productive contributors, fostering innovation and preventing burnout.
- The study suggests that lifelong education and self-development, particularly in the areas of reskilling, upskilling, and personal growth, could significantly contribute to overall productivity and economic growth.
