The World Economic Forum (WEF) has released its annual Future of Jobs report, which highlights significant trends in job growth, automation, and the evolving skills landscape for the workforce over the next several years. This year's report is based on a comprehensive survey that included over 1,000 employers from diverse sectors, collectively representing more than 14 million workers across 22 industry clusters and 55 economies.
One of the key findings of the report indicates that there is an increasing demand for specific skills vital for operating in an AI-dominated business environment. According to the WEF, the three most sought-after skills are AI and big data, networks and cybersecurity, and overall technological literacy. The report revealed that "half of employers plan to reorient their business in response to AI," demonstrating a robust shift in business strategies towards automation and technology.
The repercussions of this shift, however, are particularly severe for clerical and administrative roles, where job numbers are expected to sharply decline. The report states that such positions will witness the steepest reduction in employment opportunities over the next five years. This transition to automation is accompanied by an expectation that “two-fifths (39 percent) of existing skill sets will be transformed or become outdated” during the period from 2025 to 2030, although this measure of 'skill instability' has improved compared to prior assessments.
Conversely, the report offers some optimism for frontline roles that are less susceptible to automation. Fastest job growth is anticipated in professions such as farmworkers, delivery drivers, construction workers, sales personnel, and food processing workers. Jobs in the care economy, encompassing nursing, social work, and personal caregiving, are also projected to experience notable growth. Additionally, roles in the education sector are expected to flourish as demand increases.
For IT professionals, the landscape appears to be shifting. The WEF emphasises the imperative for workers in this sector to develop skills related to AI, big data, and software development to remain competitive. Strong job growth is projected for roles focusing on robotics, autonomous systems, and energy generation, particularly in renewable energy engineering and electric vehicle technologies.
The rising cost of living is identified as the second-most transformative trend impacting the labour market, with the report suggesting it could cost approximately 1.6 million jobs. Nevertheless, the survey indicates that many of these positions may eventually be replaced. The WEF projects that over the 2025 to 2030 timeframe, job creation and destruction, driven by structural changes in the labour market, could affect up to 22 percent of today's total jobs. Specifically, the report anticipates the creation of new employment opportunities equivalent to 14 percent of current employment levels, translating to about 170 million new jobs. However, this creation will be counterbalanced by the displacement of around 92 million jobs, leading to a net growth of approximately 78 million jobs, or a seven percent increase.
Trade tensions also feature prominently in the employers' considerations, with over 20 percent of respondents indicating that heightened restrictions on international trade and investment will influence their operational strategies.
Accompanying the Future of Jobs report is the WEF’s Chief Economists Outlook from September 2024, in which economic experts predict short-term stability for the global economy but express concerns about deteriorating trends in the long term, especially affecting developing economies.
Source: Noah Wire Services