Probably one of the most well-known international organizations working in the public-private cooperation field, the World Economic Forum (WEF), recently published its Future of Jobs Report 2023. This is a comprehensive analysis that examines the effects of the current upheavals in the labor market and provides a five-year projection for technology adoption, jobs, and skills.
The authors have underlined why this particular edition is important – this year’s report examines how changes in technology, demographics, and socio-economics will affect the global labor force over the course of the next 10 years offering fresh perspectives as to how these changes may affect workplace dynamics in the future.
The WEF analytical team partly based its findings on a survey of 803 companies into how they perceive the macrotrends and technological trends, how these affect employment and skill levels, and how firms expect to alter their workforces between 2023 and 2027.
The factors that will impact employment the most are not new or revolutionary:
- The use of advanced technologies such as AI
- Increasing living expenses and the slow pace of economic growth
- Supply constraints
- Shifts in consumer demand, especially in terms of societal and environmental issues.
However, based on the responses to the survey, the conclusions of the WEF analysis offer more food for thought.
It is anticipated that almost a quarter (23%) of jobs will change by 2027 with companies expecting that around 69 million new jobs will be generated by 2027 but, at the same time, 83 million current jobs will be lost.
Employing AI instead of people
As administrative work declines at an accelerated rate, mainly due to the fast development of AI, the need for talent in innovative tech and cybersecurity is rising.
See also: 5 jobs that Artificial Intelligence could soon replace
Approximately 75% of the companies surveyed said that they expect to implement AI by 2027. By doing so, around 26 million jobs are expected to be lost, mainly administrative and record-keeping roles, including cashiers, ticket agents, and accountants.
What does the data show?
Innovations like big data, cloud computing, and AI are already being embraced, and this pattern is expected to continue.
- By 2027, innovative tech is expected to be used by over 75% of businesses
- 86% of enterprises are anticipated to make use of digital platforms and apps
- In addition, 75% of these will employ e-commerce and digital trading for quicker and easier transactions
- 81% of enterprises look forward to employing labor and education technologies, including robot integration
Fig.1. Technologies in order of how many businesses questioned said they were very likely or likely to adopt them in the next five years.
Source: Future of Jobs Report 2023 Click to Enlarge.
Top jobs with faster growth and decline
The job market is undergoing a dramatic transformation as a result of an increase in the use of technology and automation.
Agriculture, digital commerce, and education are predicted to experience the fastest growth, while most of the positions that are rapidly disappearing are clerical or secretarial positions.
Largest job growth (millions)
Fig.2. Top positions ordered by the greatest net job growth
Source: Future of Jobs Report 2023 Click to Enlarge.
Largest job decline (millions)
Fig.3. Total decline in 5 years (millions of jobs)
Source: Future of Jobs Report 2023 Click to Enlarge.
Growing demand for a skilled workforce for the green economy
Many companies are focusing on shifting to renewable sources of energy while at the same time, the accent is put on reducing waste and reusing resources.
Labor market experts claim that a major obstacle to the development of a sustainable economy is the shortage of the necessary skills.
If the appropriate laws and funding are provided to encourage people and organizations to choose environmentally friendly options, it will be possible to create millions of green jobs.
What is a green job?
Designing, creating, or applying innovative methods and techniques to lessen the negative effects of human activity on the environment, as well as keeping track of and enforcing adherence to environmental laws, are examples of green jobs.
Green jobs registering the fastest growth
According to data presented in the latest LinkedIn report, the five green positions that registered the highest annual growth from 2016 to 2021 are:
- Sustainability manager (with a 30% annual growth)
- Wind turbine technician
- Environmental health and safety specialist
- Ecologist
- Solar consultant
Source: Global Green Skills Report 2022 Click to Enlarge.
Most people with the necessary skills for the green sector are employed in wealthier nations like the US, Great Britain, and Australia. However, the need for green talent is also higher than normal in large rising economies such as India, Brazil, South Africa, and Indonesia.
Top 3 priorities for skills development
While it is now thought that roughly 50% of employees can obtain the necessary training opportunities, in the next few years this figure will increase to around 60%. In terms of developing employee competences, these are the top three skills that employers plan to focus on:
1. Analytical thinking – expected to account for 10% of training programs on average
2. Encouraging creative thinking
3. AI and big data training
Although the respondents shared their optimism regarding their ability to improve their current workforce, they are less upbeat about the prospects for the availability of talent, at least in the period between 2023 and 2027.
The best approach to attract more brilliant individuals to their organizations is, according to nearly half of the businesses (48%), to improve the way they develop personnel and promote them. The importance of this is deemed to be greater than offering higher compensation (36%).
According to the businesses, the two most frequent methods they would employ to meet their objectives are investing in training and utilizing technology to make tasks easier.
Final word
The Future of Jobs Report 2023 outlines the significance of reskilling and upskilling talent. It foresees an increase in the demand for digital and technology skills as well as a shift towards more human-centered abilities such as critical thinking, problem-solving, and creativity. Another important trend for the next 10 years is the expanding demand for knowledge in sustainability and climate-related issues. To remain competitive and succeed in the workplace of the future, it is crucial to place emphasis on lifelong learning and adaptability as the employment market continues to change.
