Abstract

This paper aims at reviewing the crucial aspect of skill development policies as a solution to unemployment challenges in the contemporary world economy with increasing influence of technology. In addition, the review uses real life successful training models from both developed and developing economies to assess the effects of different training programmes on group employment, wages per workers, and sectorial productivity. Based on an evaluation of quantitative research findings and analysis of other cases, the review establishes that effective skill development programs can increase employment outcomes of participants by up to 12% and their wages by up to 25%. The research explores the social change effects of technological enhancement in training provision, the e-learning systems, the AI applications and solutions, and the VR-based practical training simulations, recognising the residual issues like institutional constraints, lack of skills match, and structural inequalities. From the roles identified of different stakeholders and while reviewing policy strengths and weaknesses, this paper seeks to present applicative lessons to improve on the efficiency of the skills development programmes to address unemployment problem. These studies stress the importance of innovation for creating flexible, scalable training systems that will prepare people for career shifts and help those that experience difficulties in entering skill enhancement programs.