Singapore has claimed the No. 1 spot in the 2025 Global Talent Competitiveness Index (GTCI) for the first time, marking a milestone for Asia-Pacific nations in the race for skilled workers. But the real story isn’t about rankings. It’s about the fundamentally different approaches countries are taking to build resilient workforces in an age of constant disruption.
The GTCI, produced annually by international graduate business school INSEAD and the independent research org Portulans Institute, evaluates 135 countries on their ability to enable, attract, grow and retain talent. This year’s edition reveals a talent terrain shaped less by resources than by strategic choices, with some nations doing more with less while others struggle despite economic progress.
Adaptability as the new competitive edge
The report identifies adaptability as a critical driver of talent competitiveness, particularly as artificial intelligence reshapes labor markets. Countries that cultivate cross-functional, collaborative skills are better positioned to convert disruption into opportunity.
High-income economies dominate the top 10 in what the GTCI calls Generalist Adaptive Skills—broad-based competencies like cognitive flexibility and interdisciplinary problem-solving. Denmark, Iceland and Switzerland lead in Europe, while Middle Eastern nations including Qatar, the United Arab Emirates, Israel and Saudi Arabia also perform strongly. The Philippines stands out as the only lower-middle-income economy in the soft skills top 10.
Resilience is not simply an individual trait but also a function of educational and organizational practice, government policy and cultural attitudes toward adversity and failure, the report notes.
In an era defined by disruption, competitiveness hinges on the ability to evolve, the report states. These cooperative skills are increasingly helping economies upskill talent and enhance workforce adaptability. “What is needed is resilience thinking—the capability not merely to recover but to adapt, reimagine and transform in the face of change,” write the report authors.
The middle-income plateau problem
One of the report’s most interesting findings is what researchers call a talent plateau among upper-middle-income economies. Not a single country in this income bracket appears among the dynamic movers who exceed expectations for their GDP level. This absence may indicate that, as countries move from middle to high-income status, institutional and education reforms often lag behind income growth, according to the report.
Georgia ranks highest among upper middle-income economies at 45th globally, followed by Malaysia at 46th and Mauritius at 49th. These countries show a growing commitment to enabling, attracting and retaining talent through education system improvements and innovation-driven ecosystems, according to report authors. However, the lack of upper-middle-income countries exceeding expectations suggests a systematic challenge as nations transition to higher income levels.
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Regional pathways to success
Europe and Sub-Saharan Africa each account for seven dynamic movers in the index, though for different reasons. European nations leverage established talent ecosystems, while Sub-Saharan African countries show emerging human-capital momentum.
Among low-income economies, Rwanda, Malawi and Gambia demonstrate steady progress in strengthening talent foundations. The report authors say these rankings highlight efforts to expand access to education and skills development within resource-constrained contexts.
The Americas show strong performance from the United States and Canada, representing the region’s capacity to cultivate skilled talent across diverse sectors. However, the U.S. fell from third to ninth this year, marking the first time since 2013 it hasn’t placed in the top five. Slight declines in openness and lifelong learning contributed to the drop, say the researchers.
In Latin America and the Caribbean, Chile leads at 39th, reflecting a strong foundation in mid-level vocational and technical skills. Costa Rica and Uruguay show comparable strength in attracting, enabling and growing talent, with Uruguay standing out for retention.
Strategic focus beats heavy spending
The report emphasizes that high-impact talent competitiveness is driven not only by investment scale but through strategic focus and effective talent systems. Several economies exceed output expectations for their levels of talent inputs, which researchers describe as doing more with less.
Israel, Tajikistan, Sri Lanka, Kenya and Uzbekistan all perform better than their input levels would predict. Report authors suggest these nations have found ways to maximize returns on talent investments through targeted strategies.
The Middle East continues to lead globally in attracting talent, underpinned by exceptional levels of external openness. The United Arab Emirates ranks third worldwide in the Attract pillar, while Qatar and Kuwait also feature prominently.
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The Nordic model: resilience through systems
The Nordic countries—Denmark, Finland, Sweden, Norway and Iceland—consistently top resilience indices through strong institutional trust, inclusive governance and comprehensive welfare systems. The report authors say this region’s approach offers lessons for HR leaders grappling with workforce disruption.
Denmark’s flexicurity system illustrates how resilience can be managed at scale. The model combines generous but time-limited welfare benefits with strong obligations for workers to retrain, accept mobility and even downgrade temporarily. By coupling protection with activation, report authors indicate that the system helps individuals rebuild while maintaining labor market dynamism.
The Nordic countries pay attention to preparedness at every level, from household emergency kits to cross-functional government coordination during crises. According to commentary in the report, their success rests on deliberate systems of institutions, habits of cooperation and high levels of trust linking citizens, business and government.
Surprising standouts across income levels
The report reveals several unexpected performers challenging conventional assumptions about talent development. Montenegro ranks 26th in attracting talent despite being an upper-middle-income economy, competing directly with high-income nations like Lithuania and Spain. Azerbaijan emerges as a global outperformer at 18th in vocational and technical skills, surpassing several high-income economies, including the Netherlands and France.
Belarus stands out at 34th in retention, demonstrating strong sustainability foundations that rival high-income economies. In Sub-Saharan Africa, Seychelles comes in at 25th in retention with balanced sustainability and lifestyle scores. Kuwait rose sharply from 63rd to 51st. This marks one of the region’s most notable improvements through broad-based progress in education quality, regulatory effectiveness and business environment reforms.
Among lower-middle-income economies, Uzbekistan leads both Central and Southern Asia and its income group at 28th in vocational and technical skills. The country also ranks 81st in the Enable pillar, topping Central and Southern Asia. Sweden posted the largest rise among the top 15 countries, climbing four positions to fifth place with world-class results in researchers, pension coverage and household financial resilience.
The 2025 GTCI underscores that talent competitiveness in an era of disruption requires more than traditional approaches. Countries finding success are those building adaptable, resilient workforces through strategic systems that turn adversity into opportunity. For HR leaders, the implications are clear.
As the report states: “Economies that cultivate adaptable, cross-functional and AI-literate workforces tend to be better positioned to convert disruption into opportunity and sustain long-term competitiveness in a rapidly evolving global landscape.”
If global talent needs are important to your organization, join us at HR Tech Europe (22–23 April 2026, Amsterdam) and HR Tech Asia (4–7 May 2026, Singapore). These events unite senior HR executives, talent strategists and industry innovators to explore workforce technology and next-generation talent management.
