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Why Fortune 1000 Companies Will Spend $141 Billion Annually on Skills Training by 2035

  • Writer: Trevor Higgs
    Trevor Higgs
  • Jun 10
  • 4 min read

Updated: Jul 24

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The accelerating pace of change in the global workforce is undeniable. According to the World Economic Forum’s Future of Jobs Report 2025, nearly 40% of core skills required across industries will shift by 2030 [1]. Artificial intelligence, automation, and the green economy are rapidly redefining the labor market, requiring organizations to commit to large-scale, ongoing investments in workforce development.


In response to these seismic shifts, Fortune 1000 companies are poised to expand their learning and development (L&D) efforts significantly. By 2035, these organizations are expected to invest approximately $141.05 billion annually in upskilling and reskilling initiatives. This figure represents 3.5% of the projected total wage cost for the Fortune 1000 in 2035—a proportion well within the industry standard range of 2% to 5% of payroll allocated to L&D [4][5][6].


This investment is not speculative. It is a logical and necessary evolution rooted in both emerging workforce demands and established corporate learning trends. As of 2024, the total wage cost of the Fortune 1000 stood at an estimated $2.82 trillion. Assuming consistent wage growth of 3.5% annually, this figure will rise to $4.03 trillion by 2035. A 3.5% L&D allocation against that payroll results in the $141 billion projection.


Leading companies are already trending in this direction. The World Economic Forum’s Measuring Stakeholder Capitalism framework shows that the proportion of payroll spent on L&D has been rising consistently, from 0.3% in FY2020–2021 to 1.2% in FY2022–2023 [7]. Major firms such as PwC report average L&D investment exceeding $1,900 per employee annually [8].


Multiple respected sources support this trajectory. WorkRamp, OneRange, and SuccessCOACHING each recommend that companies allocate between 2% and 5% of total payroll to employee development [4][5][6]. These benchmarks, paired with public disclosures and wage trend data, make a compelling case that a 3.5% allocation by 2035 is not only realistic—it is imminent.


The rationale for this investment is clear. Workforce automation is expected to displace or transform as much as 42% of job tasks by 2027 [9]. Roles in sustainability, AI, and emerging technologies are expanding faster than qualified talent can be developed. Two-thirds of employers already report moderate to severe skill shortages in strategic growth areas [10].

$141 billion in annual skills investment will enable the Fortune 1000 to:


  • Future-proof operations against economic and technological disruption.

  • Build internal pipelines for high-demand, hard-to-fill roles.

  • Reduce employee turnover by increasing engagement and career mobility.

  • Demonstrate ESG and stakeholder alignment through transparent workforce investment.


To implement this strategy effectively, companies will need to establish robust metrics, including tracking the percentage of payroll investment, hours of training delivered, and per-employee cost. They must also prioritize programs directly tied to future skills, including artificial intelligence, digital literacy, sustainability, cybersecurity, and leadership. A blended learning approach, combining scalable digital content with targeted coaching, will be essential to achieving results at scale.


Organizational culture will also play a critical role. Companies that foster a culture of lifelong learning, where curiosity and self-development are encouraged, will derive the greatest return on their reskilling investments. Infosys’ model, which enables employees to dedicate daily time to skills development, is a case in point [2].


By 2035, the Fortune 1000 will not merely be investing in learning—they will be relying on it. With labor markets under pressure, technology evolving rapidly, and competitive advantage increasingly tied to human capital, the annual commitment of $141 billion to upskilling and reskilling will become a core component of corporate strategy.


This is not a prediction. It is the new reality of workforce competitiveness.

How Companies Like Catalyzr Make Reskilling More Effective

As organizations commit to spending $141 billion annually on skills training by 2035, the challenge is no longer whether to invest, but how to ensure that investment delivers results. This is where data-driven solutions like Catalyzr play a critical role.


Catalyzr offers a scientific and scalable approach to maximizing the return on workforce development. Its proprietary Career Quotient (CQ) model measures an employee's cognitive fit for roles across the organization, quantifying their potential for success before a dollar is spent on training. This insight allows companies to direct learning investments to the employees most likely to thrive in target roles.


By using Catalyzr to identify high-potential talent, companies can:

  • Optimize Training Spend: Direct development dollars to employees with the greatest aptitude for success.

  • Accelerate Talent Mobility: Quickly fill critical skill gaps by reskilling individuals with the right cognitive fit—even if they lack traditional credentials.

  • De-Risk Skills Transformations: Avoid costly misalignment between training programs and an employee's actual potential.


As the scale of L&D investment grows, so does the importance of precision. Platforms like Catalyzr ensure that upskilling programs are not only well-funded but also well-targeted, efficient, and aligned with long-term business goals.


In a landscape where human capital is the primary driver of competitive advantage, tools that align investment with potential will define the next generation of workforce strategy.


For more information on how Catalyzr can optimize, accelerate, and de-risk your skills program, drop us a line at connect@catalyr.com

 

References

[1] World Economic Forum, Future of Jobs Report 2025https://www.weforum.org/publications/the-future-of-jobs-report-2025/

[2] Business Insider, "FOBO, or fear of becoming obsolete, is the new business buzzword"https://www.businessinsider.com/fobo-fear-of-becoming-obsolete-new-business-buzzword-davos-wef-2025-1

[3] World Economic Forum, Reskilling Revolution Initiative Overview(Referenced in WEF initiatives—same site as link [1] above)

[4] WorkRamp, "4 Ways to Budget for Your L&D Program in 2024"https://www.workramp.com/blog/how-to-budget-for-your-ld-program/

[6] SuccessCOACHING, "How To Build a Budget for an L&D Initiative"https://successcoaching.co/blog/how-to-build-a-budget-for-l-and-d

[7] World Economic Forum, Measuring Stakeholder Capitalism: Metrics 2022–23https://www3.weforum.org/docs/WEF_Stakeholder_Capitalism_Metrics_2022-2023.pdf

[8] PwC, FY23 Purpose/EQ Annual Report (citing ~$1,900+ per employee spend)https://www.pwc.com/us/en/about-us/purpose-and-values/assets/fy23-pwc-purpose-report-full-report.pdf

[9] Financial Times, "Tech and generational changes increase urgency of upskilling"https://www.ft.com/content/c8d27903-119b-4456-9694-8781fd6fe46f

[10] Reuters, "Sustainability profession scrambles to fill 'extreme gap' in digital skills to harness power of AI"https://www.reuters.com/sustainability/society-equity/sustainability-profession-scrambles-fill-extreme-gap-digital-skills-harness-2024-11-28/

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