Detroit City Wire

A new report from WGU Labs indicates that small businesses struggling to find qualified employees could benefit from upskilling their existing workforce. The research, which draws on two decades of market data and input from employers, found that 87% of companies globally are experiencing a skills gap.

The study also highlights the situation faced by millions of American workers without college degrees, described as “rising talent.” These individuals often remain in low-paying jobs with little stability or advancement opportunities. According to WGU Labs, investing in this group not only supports employee career growth but also helps businesses build a “more resilient, loyal and skilled workforce.”

Small businesses may be especially well-positioned to implement upskilling initiatives due to their close relationships with staff and greater flexibility. This approach can help them develop a local pipeline of talent.

Data from the National Federation of Independent Business shows that hiring remains a challenge for many small firms. In its April 2025 jobs report, 34% of small business owners reported unfilled job openings, while 47% cited an inability to find qualified applicants. Nearly one-third had openings for skilled workers, and sectors such as construction, transportation, manufacturing, and wholesale reported the highest number of vacancies.

WGU Labs reports that rising talent accounts for 15% of the U.S. working-age population. Barriers for these workers include lack of technology skills, food insecurity, inherited poverty, limited access to childcare, and often entering the workforce straight after high school. Many pursue higher education later in life if at all.

Despite these challenges, rising talent often possesses valuable real-world experience applicable across various roles. Businesses stand to benefit by recognizing these skills and providing pathways for advancement through training programs. The report notes that employees actively seek out opportunities for upskilling when considering new jobs and are willing to move to companies offering development programs.

However, organizations face obstacles when trying to upskill staff: time constraints, costs, lack of incentives or awareness about internal job openings can all be issues. Employers interviewed by WGU Labs offered several strategies:

“Work with other small businesses. Develop a network with other local employers to ‘share knowledge, resources, and talent,’ WGU Labs says. These partnerships could incentivize local markets to upskill in which companies benefit from talent sharing.”

“Partner with community organizations. Work with local nonprofits, academic institutions, and faith-based organizations for talent referrals and recommendations. It will also establish your business within the community.”

“Rethink skills requirements. Instead of always seeking people with four-year degrees, identify the skills your organization truly needs. Then take a chance on job candidates or existing employees with nontraditional backgrounds and track their progress.”

“Create educational opportunities. Developing apprenticeship programs enables employees to learn practical skills on the job. Foster internal talent by offering educational opportunities as soon as they’re hired; doing so could build a pipeline of leaders who understand your business.”

“Offer support. As much as you can, help rising talent address the challenges in their lives such as by offering childcare during training sessions or flexible schedules to take courses. These benefits will solidify a culture of learning and employee well-being while enabling organizations to become more resilient with a well-developed workforce.”