The five most in-demand competencies across the labor market

A new reportexplores how 120 knowledge areas, skills, and abilities are demanded across the workforce and within specific occupations. Workplace Basics: The Competencies Employers Want finds that communication, teamwork, sales and customer service, leadership, and problem solving and complex thinking are the five most in-demand competencies across the labor market, while strength and coordination are the least in demand.

Competencies that are in high demand across the workforce are associated with higher earnings in jobs in which they are used most intensively. Workers receive an average earnings boost of about 20 percent when they use communication more intensively on the job. Similarly, an increase in the intensity with which workers use problem solving and complex thinking is associated with an average earnings premium of 19 percent.

Seventy-seven percent of the workers who use communication most intensively have a bachelor’s degree or higher, compared to 10 percent of workers who use strength and coordination abilities most intensively. In healthcare professional and technical occupations, high school-educated workers who use communication most intensively have higher median earnings ($52,300 per year) than the overall median for workers with some college or an associate’s degree ($49,200 per year).

The most intensive use of problem solving and complex thinking among blue-collar occupations is associated with an average earnings premium of 89% above the median.