TL;DR:
- 69 million new jobs are expected to be created, while 83 million existing jobs may be phased out by 2027.
- Macro trends such as the green transition, ESG standards, localized supply chains, and tech advancements are driving job growth.
- Economic challenges pose a threat to job stability and market dynamics.
- Fastest-growing job categories include AI machine learning specialists, sustainability specialists, business intelligence analysts, and information security specialists.
- Reskilling and upskilling are crucial for the future workforce, with a focus on cognitive skills like analytical thinking and creative thinking.
- AI adoption is expected to lead to both job growth and job losses.
- Employers and governments must invest in training programs and support structures to equip individuals for the jobs of the future.
- Green jobs present opportunities for job creation, particularly in renewable energy and sustainability roles.
- Affordable and flexible reskilling programs are necessary to support displaced workers and meet evolving demands.
- Collective action from the public and private sectors is needed to address skills gaps and talent shortages.
Main AI News:
In the ever-evolving landscape of the global workforce, the adoption of new technology and the expansion of digital access are poised to reshape the job market. According to the World Economic Forum’s (WEF) The Future of Jobs Report 2023, employers worldwide anticipate the creation of 69 million fresh employment opportunities, while 83 million existing jobs may be phased out by 2027.
The report, based on a comprehensive survey of 803 companies, highlights that approximately 23% of jobs are expected to undergo significant changes over the next five years, with a projected growth rate of 10.2% offset by a decline of 12.3%. This shift translates to a net decrease of 14 million jobs, equivalent to 2% of the current global employment figures encompassing 673 million positions.
Driving this transformative landscape are several macro trends, including the green transition, environmental, social, and governance (ESG) standards, localized supply chains, and technological advancements. These factors are identified as the primary catalysts for job growth, shaping the employment landscape in the years to come.
However, economic challenges such as high inflation, slower economic growth, supply shortages, and inflation itself present significant threats to job stability and market dynamics. Mitigating these challenges will be crucial for sustained growth and workforce resilience, as outlined in the report.
The report identifies the fastest-growing job categories as artificial intelligence (AI) machine learning specialists, sustainability specialists, business intelligence analysts, and information security specialists. Additionally, significant absolute growth is anticipated in the education, agriculture, and digital commerce sectors, paving the way for new opportunities and avenues of economic development.
Saadia Zahidi, the Managing Director of the WEF, acknowledges the tumultuous nature of recent years, with the convergence of the COVID-19 pandemic, geopolitical shifts, and the rapid advancement of AI and other technologies. She emphasizes the need for governments and businesses to invest in reskilling programs, education initiatives, and comprehensive support structures to equip individuals with the skills required for the future of work.
While technology remains a double-edged sword, both posing challenges and offering opportunities to labor markets, employers express optimism regarding the positive contributions of most technologies to job creation. The People’s Charter on Jobs in Africa underscores the potential of heavy investments in technology and digital industries, projecting the creation of at least 15 million new jobs in Africa by 2025.
Dr. Suzanne Gildert, a SingularityU faculty member specializing in robotics and AI, foresees a future where human-like robots, capable of learning and acquiring skills akin to humans, will eventually replace jobs across various sectors. This prediction aligns with the advancements in robotics that are expected to reshape the employment landscape in the long run.
The Future of Jobs Report 2023 indicates that the fastest-growing roles are driven by big data and AI, with 75% of survey respondents anticipating job growth in these areas. Employment opportunities for data analysts and scientists, big data specialists, AI machine learning specialists, and cybersecurity professionals are expected to witness an average growth rate of 30% by 2027.
The report notes that AI, a pivotal driver of algorithmic displacement, is expected to be adopted by nearly 75% of surveyed companies, leading to substantial changes in job dynamics. While 50% of organizations expect AI to create job growth, 25% anticipate job losses as a consequence.
In response to these developments, 42% of surveyed companies express their intention to prioritize training workers to effectively utilize AI and big data in the next five years. This emphasis on upskilling is deemed crucial, ranking behind analytical thinking (48%) and creative thinking (43%) in terms of importance.
Reskilling and upskilling have emerged as urgent priorities for companies as they navigate the challenges of transformation and strive to attract and retain top talent. According to the World Economic Forum (WEF), skills gaps and a lack of skilled professionals are significant barriers to progress across industries.
The WEF emphasizes the need for comprehensive training and reskilling initiatives, noting that six out of ten workers will require training by 2027. However, the report highlights a concerning disparity, with only half of employees currently having access to adequate training opportunities. Furthermore, the WEF estimates that, on average, 44% of an individual worker’s skills will need to be updated to meet evolving demands.
Employers increasingly value strong cognitive skills, recognizing the growing importance of complex problem-solving in the modern workplace. Analytical thinking and creative thinking are identified as the most critical skills for workers in 2023, and this trend is expected to continue over the next five years.
Jeff Maggioncalda, CEO of Coursera and a participant in the study, highlights the potential of innovative approaches, such as industry micro-credentials and skills-based hiring to address skills gaps and talent shortages. The research reveals that individuals without degrees can acquire essential skills in a comparable timeframe to those with degrees, underscoring the potential for alternative pathways to foster career growth.
However, meeting these reskilling and upskilling needs will require collective action from both the public and private sectors. Affordable and flexible reskilling programs must be made available at scale to support displaced workers in transitioning into the jobs of the future.
The rise of green jobs represents a significant opportunity for job creation and industry transformation. Increased investments in the green transition and climate-change mitigation, coupled with growing consumer awareness of sustainability issues, are driving this shift. The WEF report highlights that investments facilitating the green transition of businesses are expected to have the strongest net job creation effects, as more than half of the respondents anticipate this outcome.
As countries strive to adopt more renewable energy sources, specialized roles such as renewable energy engineers and solar energy installation and systems engineers will be in high demand. Additionally, there will be growth in more generalist sustainability roles, including sustainability specialists and environmental protection professionals, with an estimated growth rate of 33% and 34%, respectively, translating to approximately one million new jobs.
Conlcusion:
The findings of the World Economic Forum’s The Future of Jobs Report 2023 indicate a significant shift in the global job market. While the adoption of new technology and increased digital access present opportunities for job creation, there is also a significant risk of job displacement. The report underscores the importance of reskilling and upskilling initiatives to equip individuals with the necessary cognitive and technical skills for the jobs of the future. As businesses and governments invest in these initiatives, there will likely be a surge in demand for training programs and support structures.
Additionally, the rise of green jobs presents opportunities for industry transformation and economic development. As such, companies that invest in reskilling and upskilling programs and those that prioritize sustainable practices are likely to be better positioned to navigate the changing employment landscape and stay ahead of the competition.
