Jackson joined the Blues in a £32m deal from Villarreal last summer and notched up 14 Premier League goals in his maiden season.
Sometimes branded as wasteful in front of goal last campaign, the Senegalese forward has appeared more refined in the early stages of this season under the tutelage of new head coach Enzo Maresca.
Jackson already has four goals in his first seven league games and while it’s still early days, Shearer believes the 23-year-old is only going to keep improving.
‘Nicolas Jackson is getting better and improving, but there’s still a way to go,’ the former Newcastle United striker told Betfair.
‘He’s still learning, he’s still raw, but in terms of his ability, there’s lots you can see that he can work at to reach the next level.
‘The important thing is, he is improving. He does still miss a lot of chances, but that’s going to happen. It’s a work in progress, but he’s looking a lot better when I compare him to last season.’
Despite consistent rumours linking Chelsea with a move for Victor Osimhen, Jackson is going nowhere anytime soon having signed a contract extension in September which keeps him at the club until 2033.
And Shearer says Jackson must put those rumours to the back of his mind and focus on smashing his previous goal tally from last season.
‘The 20-goal mark must be his target, considering he managed 14 Premier League goals last season,’ he added.
‘Once he’s done that, and I think he will do that, then the next step is to do it season after season, which then becomes more difficult because everyone knows who and what you are.
‘That’s when you find out if you’re a top player or not if you can do it over a length of time. There’s ability in there and he will continue to get better.’
Jackson will get his next chance to add to his goal tally when the Blues travel to Anfield to take on Liverpool on Sunday.
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