Building Workforce Agility in State and Local Government

State and local governments are at a turning point. As retirements accelerate and job demands shift due to technology, organizations have a critical opportunity to modernize workforce strategies. Nearly half of government employees plan to retire within the next five years, making it more important than ever to build a workforce that can adapt to changing demands.

At the same time, public service work is evolving. Many roles now require digital literacy, data analysis, and problem-solving skills, yet only 28 percent of government employees believe they have access to the professional development needed to keep up.

Traditional hiring models—focused on degrees and years of experience—are struggling to meet these demands. That’s why more organizations are shifting toward skills-based workforce strategies, which prioritize skills over rigid job descriptions. Research has shown that skills-based hiring expands the talent pool and improves job matching, helping organizations find qualified candidates—including those from nontraditional career paths.

Why Skills-Based Strategies Are Gaining Momentum

More state and local governments are adopting skills-based strategies to strengthen their workforce and keep pace with shifting job demands. And it’s a good time to do it. As private sector hiring slows, government organizations have a window of opportunity to attract skilled workers who may not have previously considered public service roles. Removing degree requirements can significantly expand applicant pools, making it easier to find qualified candidates.

It’s also a necessary time to act. Artificial intelligence (AI) and automation are reshaping how work gets done, with McKinsey estimating that up to 30 percent of tasks across many occupations could be automated or augmented. This shift highlights the growing need for employees with skills in AI oversight, data analysis, and digital tools—capabilities that will be critical for government organizations to fulfill their missions effectively.

From Job-Based Hiring to Skills-Based Mobility

Filling vacancies isn’t the only workforce challenge—keeping skilled employees engaged and ensuring institutional knowledge isn’t lost to retirements is just as important. Yet many government organizations struggle to offer clear career growth opportunities beyond traditional promotion tracks, leading employees to seek advancement elsewhere.

A skills-based approach to career mobility helps organizations tap into existing talent instead of relying on external hiring for every vacancy. By mapping employees’ skills to future roles and offering structured development pathways, organizations can improve retention, reduce hiring costs, and fill critical roles faster.

Closing the Skills Gap

To make skills-based hiring and internal mobility successful, organizations must also address gaps in workforce training. Many government employees lack access to upskilling opportunities, making it difficult to keep pace with evolving job demands.

Cybersecurity remains a major concern. A 2024 Deloitte-NASCIO study found that only 19 percent of government organizations feel confident in their cybersecurity workforce’s readiness, exposing critical vulnerabilities.

Data literacy is another growing need. As organizations rely more on data-driven decision making, they must ensure employees have the training to use analytics and AI tools effectively.

Some organizations are responding by expanding access to flexible, self-directed learning. The Denver Public Library, for example, introduced self-paced training programs that allow employees to develop skills in technology, community engagement, and leadership—helping them grow their careers while staying responsive to evolving public service needs.

Government organizations will also need to expand learning experiences. To truly close the skills gap, they will need to provide hands-on learning experiences, such as interactive labs and real-world skill-building programs, that ensure employees can apply what they’ve learned in practical settings.

The Future of Workforce Agility in Government

Skills-based workforce strategies are helping state and local governments become more adaptable, ensuring that hiring, training, and career progression are aligned with evolving workforce needs. By focusing on skills rather than traditional job descriptions, organizations are improving retention, strengthening leadership pipelines, and preparing employees for the challenges ahead.

This shift isn’t just about filling vacancies—it’s about building a future-ready workforce that can deliver on the mission of public service, today and in the years to come.