The World Economic Forum's Future of Jobs Report 2023 provides an insightful exploration of the ever-evolving job market and the anticipated skills required for the future workforce. This blog post will delve into the intricate process behind the report, highlight key findings, and discuss the implications for individuals and organizations alike.
The Future of Jobs Report 2023 is the fourth edition in the series and continues to analyze employer expectations, shedding light on how socio-economic and technology trends will shape the future workplace. The report is based on the Future of Jobs Survey, which has its widest coverage to date in terms of topic, geography, and sector.
The survey brought together perspectives from 803 companies, collectively employing more than 11.3 million workers across 27 industry clusters and 45 economies from all regions of the world. The questions covered macrotrends and technology trends, their impact on jobs and skills, and the workforce transformation strategies businesses plan to use across the 2023-2027 timeframe.
Let's talk numbers. The survey revealed that technology adoption will remain a key driver of business transformation over the next five years. Over 85% of surveyed organizations identified increased adoption of new technologies as the trend most likely to drive transformation in their organizations
The report anticipates a structural labour market churn of 23% of jobs in the next five years, implying significant job displacement and creation. Interestingly, the automation level was estimated at 34% for business-related tasks, with humans performing the remaining 66%. This represents a modest 1% increase from the 2020 edition of the survey.
The fastest-growing roles are expected in the technology and sustainability sectors, with AI and Machine Learning Specialists leading the list, followed by Sustainability Specialists, Business Intelligence Analysts, and Information Security Analysts.
Concerns Highlighted
While the report provides optimism in some areas, it also highlights several concerns:
Diverging labour markets: While tight labour markets are prevalent in high-income countries, low- and lower-middle-income countries continue to see higher unemployment than before the COVID-19 pandemic.
Lower employment levels: Workers with only basic education and women face lower employment levels.
Declining real wages: Real wages are declining due to an ongoing cost-of-living crisis.
Job destruction: Slower economic growth, supply shortages, and the rising cost of inputs and living for consumers are expected to drive net job destruction.
Automation and job displacement: By 2027, it is predicted that 42% of business tasks will be automated, potentially leading to significant job displacement, particularly those involving physical and manual work.
Decline in certain roles: Clerical and secretarial roles are expected to decline rapidly due to technology and digitalization.
On a brighter note, the report also emphasizes several positive trends:
Job creation: The largest job creation effects are expected from environmental, technology, and economic trends. The strongest net job-creation effect is predicted to be driven by investments facilitating the green transition of businesses, broader application of ESG standards, and more localized supply chains.
Technology adoption: More than 75% of companies are expected to adopt big data, cloud computing, and AI technologies within the next five years. Also, digital platforms, apps, and e-commerce are predicted to be adopted by a significant portion of the surveyed companies. Specifically, 86% of companies expect to incorporate digital platforms and apps into their operations in the next five years, and 75% of businesses anticipate adopting e-commerce and digital trade. Furthermore, education and workforce technologies are the second-ranked technologies, with 81% of companies looking to adopt these technologies by 2027.
Technology and jobs: The impact of most technologies on jobs is expected to be net positive over the next five years. Big data analytics, climate change and environmental management technologies, and encryption and cybersecurity are expected to be the biggest drivers of job growth.
Large-scale job growth: Significant job growth is expected in the education, agriculture, and digital commerce and trade sectors. The education industry is predicted to grow by about 10%, resulting in an additional 3 million jobs. Agricultural jobs, particularly for Agricultural Equipment Operators, are expected to see an increase of around 30%, leading to an additional 3 million jobs. Approximately 4 million digitally-enabled roles, such as E-Commerce Specialists and Digital Transformation Specialists, are forecasted to see growth.
The report paints a picture of a future that is both challenging and filled with opportunities. While the displacement of certain jobs due to technological advancements is a concern, the report also emphasizes that these same advancements will create new jobs. This would particularly be the case in the technology sector, which is expected to see the fastest growth in roles.
The green transition of businesses is also anticipated to be a significant driver of job creation, highlighting the importance of sustainability in the future economy. The rise of digital platforms and e-commerce is expected to result in the creation of digitally-enabled roles, thus stressing the necessity of digital skills in the future workforce.
The report suggests that the future workforce will need to be adept in areas like big data analytics, climate change and environmental management technologies, and encryption and cybersecurity. The rising trend of AI and machine learning also means that proficiency in these areas will be highly sought after.
Similarly, the increasing digitalization of commerce and trade signals that digital skills, particularly in digital platforms, apps, and e-commerce, will be crucial. The significant job growth expected in the education and agriculture sectors also suggests that skills related to these industries will be in high demand.
The Future of Jobs Report 2023 underscores the dynamic nature of the job market. While certain trends may lead to job displacement, others offer promising avenues for job creation. The key is adaptability, both for individuals and organizations. Upskilling and reskilling will be essential to navigate the shifting job landscape. The growing importance of technology and sustainability in the job market also necessitates a focus on acquiring relevant skills in these areas.
Despite the challenges, the future of jobs offers exciting opportunities for those ready to embrace change. As we move forward, it is crucial to foster a culture of continuous learning and adaptability, preparing ourselves for the jobs of the future.
Comments