A quarter of jobs will be impacted over the next five years, according to a new report by the World Economic Forum on Monday. The fast-growing trends of artificial intelligence, digitization, renewable energy and supply chain reshoring will bring about a critical shift in the global labor market. The WEF predicts a “new era of turbulence,” as many workers won’t have the requisite skills to keep up with the changes. Those with a technology, data analytics or cybersecurity background will benefit in the new environment.
The WEF study surveyed more than 800 companies that collectively employ 11.3 million workers across 45 countries worldwide. Global employers anticipate creating 69 million new positions by 2027 and eradicating 83 million jobs—a net loss of 14 million roles. Clerical workers will bear the brunt of the fast-moving changes. Around 26 million jobs in administrative positions will be cut due to AI. Additionally, macro-economic events, including slower economic growth, supply shortages and inflation, will pose more serious job threats than AI.
The study anticipates that the proliferation of AI will significantly disrupt the labor market. However, the WEF believes that the net impact of most technologies will be positive for employment growth over the next five years.
In March, Goldman Sachs released a report concluding that generative AI will disrupt 300 million jobs. The investment bank’s study also highlights that automation creates innovation, leading to new jobs. For companies, there will be cost savings. They can deploy their resources toward building and growing businesses, ultimately increasing annual global GDP by 7%. In recent months, the world has witnessed the ascendency of OpenAI software ChatGPT and DALL-E. ChatGPT surpassed one million users in its first five days of launching, the fastest that any company has ever reached this benchmark.
Job Creation
According to WEF, the proliferation of green technologies and renewable energy will be a key driver of job creation in the future of work. There will be a high demand for sustainability specialists, business intelligence analysts, information security analysts, renewable energy engineers, solar energy installation and system engineers.
There will be an estimated 10% growth in the education sector with the creation of 3 million jobs for vocational and higher education teachers.
An additional 30% of jobs—3 million positions—will be added to the economy for agricultural specialists, with an increased need for agricultural equipment operators.
Job Losses
Administrative roles will be the most impacted jobs in this new era of turbulence caused by automation and digitization. Twenty-six million clerical jobs are expected to disappear by 2027, including cashiers and ticket clerks, data entry, accounting, bookkeeping and payroll clerks and administrative and executive secretaries.
Core Skills For A Disruptive Economy
Analytical and creative thinking will be the most coveted cognitive skills by employers, with analytical thinking remaining the most valued core skill.
To ensure that workers can adapt to these fast changes in the workplace, companies will also look for resilience, flexibility, agility, motivation, self-awareness, curiosity and constant learning.
Training And Upskilling
To deliver business goals in an increasingly digital economy, employers will need to implement on-the-job training and coaching. Around 60% of the global workforce will require upskilling to keep up with AI advancements. However, only around 50% of labor participants have access to the necessary training.
Source: Forbes
