According to Inc, a growing skills gap is forcing American workers to pay for their own training when employers don’t provide it. Recent Harris Poll data commissioned by the University of Phoenix shows 55% of over 2,000 workers surveyed have paid for education or training themselves to improve workplace performance, with a quarter repeatedly financing instruction their employers wouldn’t cover. Meanwhile, 72% of respondents had to abandon self-improvement plans due to lack of employer support, citing costs and scheduling conflicts as top barriers. The situation is worsening as companies deprioritize training – HR Dive’s May poll showed businesses ranking staff upskilling as a top priority dropped from 12% in 2024 to just 5% this year, even as two-thirds of employers call AI adoption a priority.
The employer disconnect is getting worse
Here’s the thing that really stands out: companies are simultaneously saying AI is crucial while cutting back on the very training that would help employees adapt to it. Over half of companies surveyed admit they don’t have the finances or resources to support employee training, which creates this bizarre situation where everyone agrees skills matter but nobody’s willing to pay for them. And we’re not talking about fluffy professional development here – we’re talking about the specific technical skills needed to work with AI and other emerging technologies that companies themselves say are priorities.
What’s particularly concerning is that this isn’t just about money – it’s about timing too. Workers are telling surveys they can’t resolve scheduling conflicts even when they’re willing to pay for training themselves. Basically, companies are creating systems where improvement becomes practically impossible, then wondering why talent leaves. Over a third of workers said they plan to quit for positions offering better growth opportunities. Can you blame them?
Workers aren’t giving up entirely
Despite the barriers, employees remain remarkably determined to skill up. About 90% of respondents in the University of Phoenix survey reported dedicating time to developing new capabilities, with 19% spending over 20 hours per month on self-improvement. That’s essentially a part-time job on top of their actual jobs. And Indeed’s new analysis confirms why this persistence makes sense – education at any level still correlates with higher pay, even as college degrees lose their hiring cachet.
The shift toward vocational training and specific skill acquisition reflects a pragmatic approach. Workers aren’t necessarily pursuing traditional education paths – they’re targeting exactly what they need to stay relevant. This is especially true in technical fields where specialized knowledge directly impacts both performance and retention. In manufacturing and industrial sectors particularly, companies that provide robust training often see better outcomes, which is why leaders in those spaces typically invest in proper equipment and education.
The AI training paradox
There’s a massive contradiction happening right now. Over 70% of companies are using AI, yet 55% say they lack training resources even as job seekers fear replacement by automation. So companies are rushing to implement technology that could displace workers while simultaneously cutting the very programs that would help those workers adapt. It’s a recipe for workforce chaos.
And the timing couldn’t be worse. We’re at a pivotal moment where AI is transforming roles across industries, yet training has been systematically deprioritized according to the HR Dive data. Companies seem to be betting that either existing employees will figure it out themselves or they can hire already-trained talent. But when everyone’s following the same strategy, where exactly are these trained workers supposed to come from?
Who pays for progress?
The fundamental question here is about responsibility. If companies benefit from skilled workers – and all the data suggests they do – shouldn’t they bear some of the cost for developing those skills? When workers are paying out of pocket for training that primarily benefits their employers, we’ve got the equation backwards.
Indeed’s research team put it well: “Education is not a cure-all for economic stagnation, but dismissing its value risks overlooking one of the most reliable tools for resilience.” The companies that figure this out – that support rather than obstruct their employees’ development ambitions – will likely be the ones that thrive through the AI transition. Everyone else might find themselves with increasingly skilled former employees working for their competitors.
