Senior executives from American companies recognize that technical skills are critical for success in the workplace in the age of AI.
But when asked what kinds of skills are in short supply among their younger workers, many point to so-called “soft skills” such as communication, problem-solving, and collaboration. Tack on adaptability, ability to focus, and empathy to that list, too.
Digital literacy—what some might describe as both a technical and a soft skill—is also top of mind for senior executives of American companies.
To get a better understanding of how schools might help fill workplace skills gaps, Education Week reached out to senior executives of American companies from a variety of industries.
We asked them: What interpersonal and/or technical skills gaps are you seeing in younger workers in your industry?
(In a related question, we asked them how schools can provide more relevant, work-oriented learning experiences for students. See the responses to that question here.)
The following are their responses to the skills gaps question. They have been edited for length and clarity.
Young professionals are incredibly talented and highly skilled, but often they need a boost when it comes to foundational skills such as interpersonal communication, making decisions on their own, or applying their knowledge creatively, like when they need to ask questions or challenge assumptions or propose a new idea. It doesn’t take much to nudge them in the right direction, but we’ve found it’s helpful to provide younger workers with tips on public speaking and giving presentations to a group, email etiquette, and online professionalism. At Abbott, we have a program called Career Rx that’s designed to help our employees in these areas and we’ve found that it helps employees build the confidence to become more effective communicators and contributors.
We also see that despite being digital natives, young professionals are often discouraged from using emerging tech like AI in academic settings. In the workplace, however, these tools are powerful, emerging resources. Organizations like Abbott need to create safe, structured opportunities for students to explore and apply AI tools in ways that achieve our goals while meeting ethical standards.
The next generation is facing a rapidly changing job market. The dramatic disruptions introduced by AI and new technologies are set to fundamentally reshape the workforce and all aspects of our economic lives.
At Citi and the Citi Foundation, we’ve recognized the growth potential for those who embrace AI, and we are investing in and encouraging our people to do the same. Critically, we view AI as a complement to human ingenuity, embedded into how we serve clients and our communities. Younger workers entering financial services or community development need to learn how to leverage these technologies without losing the human element that AI doesn’t replace: collaboration, leadership, empathy, and adaptability. Those who learn to do both today will be best positioned for the opportunities tomorrow.
In today’s workplace, there is a need for both technical knowledge and essential workplace skills. While many young people enter the workforce with solid technical know-how, they may lack experience in communicating across diverse settings, solving complex problems in real time, and adapting to fast-paced change.
What’s missing isn’t necessarily talent—it’s experience with collaboration, strategic thinking, adaptability, and increasingly, AI literacy. These are the skills that turn capable individuals into high-performing employees.
When it comes to technical skills, there is a significant shortage of cybersecurity expertise in the talent market. Candidates with experience in cloud security and AI-driven security are the most sought after, and the demand is growing exponentially. For the younger generation, this represents a clear opportunity: pursue industry-recognized cybersecurity certifications and training, along with any formal education, to ensure you have the latest skills and knowledge to position yourself at the leading edge of demand.
In the tech industry, the most important skills younger workers need to build are not just technical, but interpersonal and strategic—the human skills of working in teams, applying critical thinking, being creative, and communicating effectively by reading the room and building empathy with colleagues.
Many struggle with navigating ambiguity, managing conflicting feedback, and synthesizing complex information to form an independent point of view. While young workers are digitally native, they can lack the confidence to push back on product approaches, ask difficult questions of people more senior than them, or drive a project forward without a clear, step-by-step guide. They are excellent at executing defined tasks but need more practice in the messy, real-world skills of creative problem-solving, deep research, and confidently articulating a strategic position.
To be successful in our constantly changing world, young people need to have agency by setting goals and developing strategies that help them build adaptability, resilience, and confidence toward a fulfilling career.
On the technical side, engineers today can add value not just by coding, but by using their deep domain knowledge to ask the right questions and guide AI to another level to build products and experiences that are genuinely useful for people.
The next generation brings energy, curiosity, and digital confidence—but key gaps remain in AI readiness and power skills. Many are “tech-comfortable” but not yet “tech-fluent.” Students use digital tools but lack the ability to apply them strategically to solve real problems.
Core interpersonal skills—active listening, constructive feedback, collaboration, and adaptability—are also critical in today’s fast-changing, hybrid workplaces. Resilience, professionalism, and comfort with ambiguity are increasingly vital.
IBM SkillsBuild offers free training in AI, data literacy, soft skills, and project management to help bridge these gaps and prepare learners for the future of work.
Financial literacy and confidence around financial decisionmaking are two key skills that are missing among younger workers. A striking 88% of Americans say that the ability to handle money isn’t something that high school prepared them for—that’s a significant skill gap, particularly for the nearly two-thirds of entrepreneurial 18- to 35-year-olds who have started or plan to start a side hustle as an addition to another form of income, and the many young people who will seek jobs in financial services.
At the same time, we’re also seeing that many younger workers today are also lacking the hands-on, real-world experience that is critical in developing interpersonal and technical skills. These elements combined are making it difficult for young people to competently and confidently transition into the workforce.
According to industry experts in manufacturing that we’ve spoken to, skills such as basic math, problem-solving, digital literacy, creative thinking, and analytical thinking are all important assets that young workers should ideally have before entering the workforce. However, according to some employers and industry groups, such skillsets appear to be in short supply across America’s manufacturing labor pool.
As AI becomes more integrated into organizations, it’s essential for younger workers to demonstrate both AI literacy and interpersonal readiness. According to Microsoft’s 2025 Work Trend Index report, AI literacy is now the most in-demand skill, and 51% of managers say AI training or upskilling will become a key responsibility for their teams within five years. We notice our interns and recent campus hires recognize AI can accelerate their onboarding, reduce time spent on routine tasks, and increase their pace of innovation, but they are uncertain about where to use AI in their work and how to validate and cite it responsibly.
AI readiness prepares workers to discuss how they’re using AI and apply best practices in validating results. In addition, interpersonal skills like adaptability, emotional intelligence, and creative, collaborative problem-solving are critical in today’s fast-evolving workplace. As AI creates the opportunity to reshape roles and responsibilities, younger workers need to be agile learners who can navigate change, approach tasks with empathy, and work effectively in teams—especially in environments where humans and AI are co-creating solutions. All workers who pair technical know-how with curiosity and strong interpersonal skills really stand out.
Coverage of preparing students for life and the workforce is supported in part by a grant from the ECMC Foundation, at www.ecmcfoundation.org. Education Week retains sole editorial control over the content of this coverage.
