2025 Year-in-Review: The Top Skills Government Employees Needed—And What They Signal for 2026

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2025 Year-in-Review: The Top Skills Government Employees Needed—And What They Signal for 2026

As 2025 wraps up, one theme has defined government workforce development more than any other: skills matter more than ever. Agencies across the country faced a rapidly shifting landscape: AI tools transforming day-to-day operations, new cybersecurity threats, accelerated digital modernization timelines, and stronger compliance expectations.

This was the year governments moved from knowledge-based training to skills-based training, focusing on what employees can do, not just what they know. And as modernization picked up speed, training programs became more tightly aligned to the skills employees need to succeed in technology-rich, compliance-driven environments.

Below, we look back at the top skills that shaped government training in 2025 and explore why they’ll be even more important moving into 2026.

 

  1. AI Literacy & AI-Enabled Problem Solving

If one skill dominated 2025, it was artificial intelligence. Government employees across all job functions: administration, HR, procurement, public safety, IT, and operations—needed practical, grounded AI training.

Why AI was the top skill of 2025:

  • AI tools were integrated into everyday tasks like writing, scheduling, casework, documentation, and data analysis.
  • State and federal agencies began rolling out AI governance policies requiring specific training.
  • Leaders needed to evaluate AI risks and guide responsible adoption.

The core AI skills that rose to the top:

  • AI and machine learning fundamentals
  • Prompting and workflow design
  • AI risk management and responsible use
  • Data quality awareness
  • Interpreting and validating AI outputs

What this means for 2026:

AI literacy will shift from “helpful” to mandatory for nearly all employees. Agencies will also invest more in AI governance structures, model oversight skills, and advanced data readiness training.

 

  1. Cybersecurity & Zero Trust Skills

Cybersecurity has been a priority for years, but 2025 pushed it further into the spotlight. Threat actors targeted government systems with more sophistication, and as agencies accelerated cloud adoption, the workforce needed stronger technical and human-factor security skills.

Key cybersecurity skills that defined 2025:

  • Zero Trust architecture essentials
  • Cloud security (AWS, Azure, Google Cloud)
  • Secure coding and vulnerability remediation
  • Network defense fundamentals
  • Incident response and reporting
  • Phishing and social engineering awareness

Why cybersecurity training intensified:

  • Increased remote access expanded agency attack surfaces
  • Agencies modernized critical infrastructure and legacy systems
  • Compliance requirements tightened at both the state and federal level
  • Ransomware attacks remained a top threat

What this means for 2026:

Agencies will prioritize more frequent cybersecurity refreshers, hands-on virtual labs, and role-specific pathways for technical and nontechnical staff.

 

  1. Data Literacy & Data Analytics

With modernization and AI came an explosion of new data responsibilities. Agencies needed employees who could interpret data, make evidence-based decisions, and support digital public services.

Top data skills of 2025 included:

  • Basic data literacy for frontline workers
  • Data visualization and dashboard interpretation
  • Excel, SQL, and Python for analysis
  • Understanding data governance and data quality
  • Using analytics tools to guide decisions

Why data skills surged:

  • More agencies adopted dashboards for program performance
  • Federal reporting standards placed increased focus on accuracy
  • AI systems required well-structured, high-quality data
  • Leadership needed data to support strategic planning

2026 Outlook:

Data competency will become the foundation for AI adoption and digital modernization. Expect agencies to push for stronger cross-department data literacy and more advanced analytics training.

 

  1. Digital Transformation & Technology Modernization Skills

Governments continued transitioning away from legacy systems in 2025, and modernization created major training needs. Agencies needed employees who could adapt to new platforms, work collaboratively across digital ecosystems, and support improved public-facing services.

Top digital transformation skills in 2025:

  • Cloud technologies and cloud-first approaches
  • Digital service delivery and user-centered design
  • System integration fundamentals
  • Low-code and no-code automation
  • Workflow optimization and process mapping

Why these skills mattered:

  • Modernization projects accelerated more than expected
  • Agencies adopted new software for licensing, HR, permitting, and constituent communications
  • Leaders pushed for more efficient interagency coordination

2026 Outlook:

Digital transformation will continue to drive new skill demands. Cloud administration, automation tools, and digital governance training will grow significantly.

 

  1. Project Management & Change Leadership

Whether rolling out an AI tool or migrating a department to the cloud, agencies relied on strong project management skills to keep modernization initiatives on track. In 2025, PM training became more practical, more scenario-based, and more integrated into leadership pathways.

Most in-demand project management skills in 2025:

  • Agile and Scrum basics
  • Traditional PM fundamentals (scope, timelines, risk)
  • Stakeholder coordination
  • Change management principles
  • Budget and resource planning

Why PM skills surged:

  • Agencies juggled multiple modernization initiatives at the same time
  • Federal funding cycles required more detailed planning
  • Leadership needed clearer visibility into project progress

2026 Outlook:

Expect project management to become a foundational skill, not only for IT, but for operational roles across agencies.

 

  1. Communication Essentials

With remote work, hybrid teams, and cross-department projects increasing, communication became one of the most essential “human skills” of 2025.

Key communication skills employees needed:

  • Clear professional writing
  • Virtual meeting effectiveness
  • Presentation and briefing skills
  • Conflict resolution
  • Active listening and collaboration

Why communication skills mattered:

  • Agencies needed clarity amid rapid technology changes
  • Managers had to support multi-location teams
  • IT, operations, and administrative units worked more closely together

2026 Outlook:

Communication will be seen not as a soft skill, but as a mission-critical competency supporting modernization, leadership, and public service delivery.

 

  1. Leadership Essentials for a Modern Workforce

2025 challenged leaders with hybrid teams, emerging technologies, and fast-moving priorities. As a result, leadership development became one of the most strategic training investments of the year.

Top leadership skills of 2025:

  • Coaching and team development
  • Decision-making and problem solving
  • Managing hybrid and remote teams
  • Guiding digital transformation
  • Building accountability and trust

Why leadership skills surged:

  • Retirements continued to reshape public-sector teams
  • Agency priorities shifted faster than in past years
  • Leaders needed to help employees adapt to new tools and processes

2026 Outlook:

Leadership training will expand to include AI-informed decision-making, data-driven planning, and more structured coaching programs.

 

What 2025’s Skill Trends Tell Us About 2026

Across every level of government, one conclusion is clear: 2026 will demand a more skilled, agile, and tech-confident workforce. Agencies will need to double down on:

  • AI literacy for all roles
  • Hands-on cybersecurity and cloud skills
  • Stronger data capabilities
  • Communication and leadership essentials
  • Upskilling to support modernization and digital services

The agencies that thrive in 2026 won’t simply fill training requirements, they’ll build clear skill pathways that prepare their teams for a rapidly changing public-sector landscape.