Transforming workforces to unlock trillions in trapped value
Our report shows more effective learning and clear skilling pathways accelerates progress for people, business and society.
Much is at stake
Our research shows that in the US alone, annual losses at key transition points—from school or college to work; unemployment due to redundancy; and displacement caused by new technologies— amount to $1.1 trillion.
Learn to Earn Transition Loss
Discover insights by country
Australia
Annual losses from transition points total approximately AU$104 billion, representing 3.8% of Australia’s 2024 GDP.
Breakdown by transition point:
- Education to work: AU$12.5 billion (0.5% of GDP)
- Involuntary job exits: AU$15.4 billion (0.6% of GDP)
- Automation disruption: AU$75.7 billion (2.7% of GDP)
Canada
Annual losses from transition points total approximately C$146.2 billion, representing 4.8% of Canada’s 2024 GDP.
Breakdown by transition point:
- Education to work: C$9 billion (0.3% of GDP)
- Involuntary job exits: C$26 billion (0.9% of GDP)
- Automation disruption: C$111 billion (3.6% of GDP)
United Kingdom
Annual losses from transition points total approximately £96 billion, representing 4% of the UK’s 2024 GDP.
Breakdown by transition point:
- Education to work: £23 billion (1.0% of GDP)
- Involuntary job exits: £9 billion (0.4% of GDP)
- Automation disruption: £64 billion (2.6% of GDP)
United States
Annual losses from transition points total approximately US$1.1 trillion, representing 5% of the US’s 2023 GDP.
Breakdown by transition point:
- Initial employment gap: US$164.8 billion
- Unemployment duration loss: US$196.4 billion
- Reskilling transition loss: US$694.4 billion
"If we could bring the average transition time between education and work down from 24 to 18 weeks, we could deliver an additional $40 billion to the US economy."
OMAR ABBOSH,PEARSON CEORead more
Make Learning More Effective
The workforce is under prepared for the pace of learning needed to keep up with the pace of Al/ technology disruption. Teaching new ways of learning can help accelerate progress over time and there's a need for speed in our AI-driven world.
A meta-study of 246 studies by the Education Endowment Foundation found that teaching students "learning to learn" approaches can translate to seven additional months of progress over one year.
Develop Clear Skilling Pathways
Careers are no longer a single, linear trajectory but dynamic journeys with many pivots and routes. It's time to re-design skilling pathways making them more transparent, personalized, and responsive to the evolving world of work.
Our statistical analysis shows shortening the transition time between formal education and work,from 24 weeks to 18 weeks, could deliver an additional US$40 billion of earnings in the US alone.
The Collaboration Imperative
Given the scale and scope of the challenges, progress requires efforts by educators, businesses, institutions and governments.
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How can Pearson help?
Learn how Pearson is working to help fix the learn-to-earn skills gap.
Having identified three transition points in an individual's work cycle, we estimated the number of affected workers for each group. Based on this, we calculated the estimated earnings loss for each transition point. We used a combination of publicly available datasets, such as those from the Bureau of Labor Statistics, the National Center for Education Statistics, and the National Association of Colleges and Employers. We also incorporated data from Pearson's Faethm database, which tracks emerging and trending skills and occupations, as well as the impact of 33 different technologies.