The Need for Upskilling Frontline Workers
Many young adults ages 16–24 work low-wage frontline jobs with limited career mobility and a high risk of automation-related layoffs. Retail, like many other industries with large numbers of frontline employees, is undergoing a rapid digital transformation. Technologies such as self-checkout, e-commerce, and AI-driven operations are reducing the need for entry-level roles. Tasks once performed manually, such as stocking, checkout, and inventory management, increasingly are being automated, eliminated, or redefined, as evidenced by the layoffs at large e-commerce companies such as Amazon.
Elsewhere in the market, rather than reducing or eliminating roles, there are some companies that face labor shortages and a widening gap between the skills the labor force has and those which are needed in a rapidly evolving economy. For example, demand is rising for skilled professionals in IT, data analytics, cybersecurity, and tech-adjacent roles like logistics tech, digital marketing, and AI-enabled operations. Warehousing is experiencing labor shortages, and companies are increasing automation efforts, – which require skilled labor to oversee. And adding to these challenges, one study estimates that the United States faces a projected shortage of more than 700,000 skilled and credentialed workers in high-paying fields. These competing trends create great pressure for employers to invest wisely in the evolution of their workforce structures, including deciding which roles to eliminate, increase, or create and how to staff those structures most efficiently.
Retail roles are often the first entry point to the workforce for young people. Indeed, over half of retail workers are under age 34, and many of the jobs they hold, such as cashier or stock clerk, are among the most vulnerable to AI replacement. In a 2022 report, BLS noted that demand for cashiers and first-line supervisors of retail sales workers, retail salespersons, and counter and rental clerks is projected to continue to decline through 2029. In this context, upskilling—improving skills or acquiring new ones—represents a critical opportunity. By investing in upskilling and credentialing in areas of high demand, retailers can transform high-turnover, low-engagement positions into career-sustaining roles while mitigating potential labor shortages in high-demand roles. On-the-job training can unlock untapped talent, satisfy the expectations of new generations of workers, and build a robust talent pipeline made up of already engaged and knowledgeable employees. Expanding access to upskilling opportunities, especially for young workers who have faced barriers, is not only a matter of fairness and access, but also critical to maintaining a full and productive labor market.