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March 9, 2026

English Proficiency is Workforce Infrastructure

Ratnesh Jha, Global General Manager, Institutional Products | ETS

  • Workforce Development

The 2026 TOEIC Global English Skills Report is a landmark global study examining how English proficiency shapes workforce performance in an AI-powered economy with findings that point to a structural shift.

English proficiency is no longer a soft skill. It is a business-critical capability tied directly to productivity, global mobility and AI effectiveness.

The report, based on a survey of more than 1,300 HR decision-makers across 17 countries provides one of the most comprehensive global snapshots to date of how employers view English skills in the modern workplace.

A Structural Shift in Employer Expectations

Ninety-two percent of global employers say English proficiency is more important today than it was five years ago, with 90% reporting it is critical to their organization’s success.

That level of global alignment reflects more than a trend. It signals a change in how organizations compete.

Multinational teams collaborate across time zones, customer bases span markets, and digital platforms operate without borders. In this environment, a shared working language helps teams communicate clearly, reduces friction and allows organizations to move faster.

Eighty six percent of employers say organizations without fluent English speakers are at a competitive disadvantage while 83% report real costs associated with hiring candidates with insufficient English skills, including lower productivity and retention. This signals that English proficiency is increasingly viewed as foundational to business performance.

AI Is Increasing the Demand for English Skills

The report also challenges the assumption that artificial intelligence can compensate for language gaps.

Eighty one percent of global employers say integrating AI tools increases the need for workplace English proficiency. Approximately 60% say AI cannot make up for weak English skills across reading, writing, listening and speaking. Ninety percent say English proficiency is necessary for using AI interfaces, generating effective prompts and evaluating AI-generated content.

AI systems depend on human clarity and judgment. As AI adoption accelerates, the quality of communication becomes more consequential, not less. The report indicates that organizations realizing the greatest value from AI investments are those with strong communication capabilities across their workforce.

Preparing the Workforce for What Is Next

Employers expect English assessment to play a larger role in the years ahead. Eighty four percent predict that organizations in their respective country will increase investment in English assessment and education within five years. Adoption is expanding across hiring, training and advancement decisions.

The conversation is shifting from whether English matters to how organizations operationalize it.

Leaders are asking practical questions. How should proficiency be benchmarked against real business needs? How can communication gaps be closed without slowing growth? How does language readiness influence AI adoption, innovation and global expansion?

These are strategic questions tied directly to competitiveness and long-term performance.

Language has always enabled connection. What has changed is the speed and scale at which miscommunication can disrupt execution in a digital, globally integrated economy.

English proficiency now underpins cross-border collaboration, customer trust, workforce mobility and effective AI integration. Organizations that approach it intentionally — with clear standards, consistent measurement and targeted development — are better positioned to move with confidence.

The TOEIC Global English Skills Report is intended to serve as a guide for leaders navigating this shift. It offers data, regional insights, and forward-looking analysis to help organizations align talent strategy with the realities of a rapidly evolving global workforce.

In an AI-enabled marketplace, communication is not a supporting function; it is infrastructure for what comes next. Download the full report here

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