The World Economic Forum’s Future of Jobs Report 2023 points to a shift towards AI, Big Data, and new technologies in the next five years.
The World Economic Forum’s Future of Jobs Report 2023 points to a shift towards AI, Big Data, and new technologies in the next five years.
The future of work is undergoing a transformative shift as we step into a new era of employment driven by technological advancements, changing demographics, and evolving workplace dynamics. From emerging technologies and remote work trends to shifting job roles, current trends are leaving an indelible mark on industries and reshaping the everyday work experiences of individuals.
The World Economic Forum’s Future of Jobs Report 2023 points to a shift towards AI, Big Data, and new technologies in the next five years.
In its recent report, a comprehensive analysis of economic, health, and geopolitical trends has revealed striking disparities in labor market outcomes worldwide in 2023.
While high-income countries experience tight labor markets, low- and lower-middle-income nations continue to grapple with elevated unemployment rates compared to pre-COVID-19 levels.
Julian Alssid, a workforce development expert, said the future of work is expected to be primarily driven by technology, including a significant role for AI and technology collaboration.
He said that the future work landscape will also be more global and diverse due to the ability to work from anywhere, leading to globally connected businesses.
Alssid also pointed out that ongoing demographic shifts will continue to play a pivotal role in shaping the future of work.
“And then, finally, I’d say that the future of work is characterized by major economic shifts. So, for example, as people live longer, we’re going to need more people in health care. That’s going to have a big impact on the future of work,” he told MSM Reporter.
The pandemic has underscored disparities in underrepresented communities, including those in education abroad. On an individual level, labor-market discrepancies are especially pronounced for individuals with basic education and women, with real wages declining due to a persistent cost-of-living crisis.
Alssid also cited the challenge of ensuring equitable access to such opportunities across all socioeconomic groups. As the demand for higher-level skills continues to rise, institutions are expected to play a pivotal role in bridging the gap, particularly for first-generation post-secondary students and their families.
He also noted that skills are evolving at a pace that is difficult to keep up with, even for those immersed in education and workforce development efforts.
“The skills are changing faster than we can capture them, and that’s a real challenge,” said Alssid.
The WEF’s Future of Jobs survey, the most extensive to date, revealed that technology adoption would be a central driver of business transformation in the next five years, with over 85 percent of surveyed organizations highlighting the adoption of new technologies, digital expansion, and Environmental, Social, and Governance standards as predominant trends.
Additional trends include the rising cost of living, slow economic growth, investments in the green transition, supply shortages, and evolving consumer expectations.
Environmental, technological, and economic trends will have significant effects on job creation and destruction, with investments in the green transition, ESG standards, and localized supply chains expected to drive job creation, the report noted.
Technological advancement, driven by the adoption of new technologies and increased digital access, is expected to result in job growth in the majority of surveyed companies. However, job displacement is also anticipated in some instances.
“Big data analytics, climate change and environmental management technologies, and encryption and cybersecurity are expected to be the biggest drivers of job growth,” it stated.
Meanwhile, agriculture technologies, digital platforms and apps, e-commerce and digital trade, and AI are all expected to result in significant labor market disruption, with substantial proportions of companies forecasting job displacement in their organizations, offset by job growth elsewhere to result in a net positive.
“All but two technologies are expected to be net job creators in the next five years: humanoid robots and non-humanoid robots,” it noted.
Employers also predict a structural labor market churn of 23 percent of jobs in the next five years, resulting in a net decrease of 14 million jobs, accounting for 2 percent of current employment.
Regarding the human-machine frontier, the pace of automation has been slower than anticipated, with 34 percent of business-related tasks performed by machines. The report noted the importance of in-demand skills such as analytical thinking, creative thinking, and technological literacy.
Moreover, six in 10 workers will require training by 2027, with a focus on analytical and creative thinking, AI, and big data utilization.
“Training workers to utilize AI and big data ranks third among company skills-training priorities in the next five years and will be prioritized by 42 percent of surveyed companies,” the report stated.
Companies aim to address skills gaps by developing their existing workforce through learning, on-the-job training, automation, diversity, equity, and inclusion programs.
The report also suggested that funding for skills training, flexibility in hiring and firing practices, and incentives for companies to improve wages can effectively address skills gaps and connect talent to employment.
According to a Forbes report, Gen Z is expected to become a major force in the workforce, accounting for 23 percent of the global workforce by 2024. This generation, marked by diversity and tech-savviness, is embracing the gig economy and multiple job roles to navigate financial challenges and inflation. The shift requires older generations to prepare for their entry, welcoming their innovative skill sets and helping them develop essential soft skills.
Generative AI is also revolutionizing industries across the board, influencing the labor market, career pathways, and the nature of work. Employees and employers are increasingly investing in AI and machine learning expertise.
“A whole bunch of people who thought their jobs were safe from automation are getting the existential sweats as ChatGPT excels at these feats of supposedly human intelligence,” Chris Hyams, CEO of Indeed, said in an interview with Business Insider.
“We’re not trying to build a recruiting robot to replace humans. What we’re really trying to do is partner with AI to generate better job descriptions and send personalized messages that are more effective,” he added.
Remote work is also evolving into a hybrid model, balancing in-person collaboration and autonomous work. Flexibility and open communication between employees and employers are key to adapting to this new remote landscape, which is expected to see 81 percent adoption.
Jon Arnold, an independent technology analyst and principal at J Arnold & Associates, told USA Today that companies pushing employees back into the office experienced reduced productivity and lower morale. Conversely, some firms embraced the idea of a distributed workforce, allowing employees to choose where they work best, whether in the office or remotely.
These progressive companies implemented hybrid schedules, with employees coming to the office on specific days, and relied on communication technology to keep operations running smoothly even when not all employees were present in the office.
“As shown by many organizations being unprepared for remote working during the first stages of the pandemic, digital transformation can happen really fast, especially when driven by necessity,” he said.
Moreover, side hustles are on the rise, particularly among younger generations who are using them to combat inflation and rising living costs. Influencer marketing, in particular, has become a popular side hustle. Having a side hustle is a smart way to prepare for the uncertainties of the job market.
The McKinsey Global Institute, in its analysis of eight diverse countries representing a significant portion of the global population and GDP, anticipates that over 100 million workers in these countries may need to change occupations by 2030, with the pandemic expediting this workforce transition.
Job growth is also expected in high-skill sectors like healthcare and STEM, while middle- and low-skill jobs may decline. Specific job categories, such as e-commerce, green economy roles, healthcare, and education, may see increased demand, but automation poses a risk to jobs like grocery store clerks and some office roles.
Likewise, the findings also highlighted three prominent trends shaping the future of work: the persistence of remote work and virtual meetings, the rapid growth of e-commerce and digital transactions, and the increased adoption of digital technologies, including automation and AI, across various industries.
The “Jobs of the Future” report by Universities UK predicts that in the next 15 years, 88 percent of job roles in the UK will require a degree qualification. It identifies key sectors, such as science, technology, engineering, and mathematics, healthcare, education, and business services, which will urgently need millions of new graduates by 2035.
Additionally, the report anticipates a 10 percent net increase in jobs requiring a degree qualification over the next two decades, especially in the digital sector, which is expected to offer over four million positions by 2027, emphasizing the demand for graduates with technology-related expertise.
“While the recent proliferation of AI tools has raised fresh concerns about automation, the trends we are seeing suggest that, amid a turbulent jobs market, having a degree will be the best way to succeeding,” said Vivienne Stern, chief executive of Universities UK.
