2023 Best Labor Study? The Future of Jobs Report
About the Future Of Jobs Report
Facts about the report
On April, 30th 2023, the World Economic Forum published a long, and detailed economical report entitled "The Future of Jobs Report 2023". In the preface of that document, the author (Saadia Zahidi, Managing Director at the World Economic Forum), states what follows:
- It is based on a unique survey-based data set
- The data-set covers a wide cross-section of the world’s largest employers expect about job trends and directions for the 2023—2027 period.
- The report was made possible by the support of of W.E.F Partner Institutes, and the contribution of data-driven insights from Coursera, Indeed, LinkedIn and the Centre for the New Economy and Society.
- The report aims to better equip workers, businesses, governments, educators, and civil community for future disruptions, and opportunities.
- It is meant to give them the tools they need to manage future disruptions, and opportunities.
- Taking decisive action is needed by business leaders and decision-makers to form these changes and guarantee that potential investments result in better opportunities and jobs for everyone.
The structure of the report
The report is structured as follows:
- Chapter 1 reviews the global labor-market landscape at the beginning of 2023.
- Chapter 2 explores how key macrotrends are expected to transform this landscape over the 2023–2027 period.
- Chapter 3 and Chapter 4 discuss the resulting global outlooks for jobs and skills over the 2023–2027 period.
- Chapter 5 reviews emerging workforce and talent strategies in response to these trends.
- The report’s appendices provide an overview of the report’s survey methodology and detailed sectoral breakdowns of the five-year outlook for macrotrends, technology adoption and skills.
Why writing about The Future Of Jobs Report?
The Word Economic Forum is increasingly notorious for its importance and influence regarding the decisions made by business leaders and decision-makers. Economical jargon can occasionally be complex, sometimes obscure for the non-economist.
Thus, it is crucial that every actor of the economy, especially productive workers, can decipher the meaning of such a detailed report.
As a matter of fact, this report will undoubtedly have massive impacts on most peoples' jobs, work opportunities, labor conditions, and salaries.
Thereby, we decided, to offer you a simplified rewriting of the economical report "The Future of Jobs Report 2023".
The ideas, statements and explanations are preserved. They are just reworded, and summarized to provide more clarity.
The author of the report "The Future of Jobs Report 2023" also took part to the 2023 Future of Jobs Report Media Briefing in the context of the Growth Summit 2023, see the video on the #worldeconomicforum
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Disclaimer:
dothebuzz.com neither supports nor denies, or even questions any idea expressed in the report. Our intent is merely to make it more accessible to our readers, so that they may be more informed on the drastic forthcoming changes of the work market worldwide
The Future of Jobs Report: Introduction
Recent years have brought numerous challenges, including health, economic, and political instability along with mounting societal and ecological concerns.
This turbulence continues to reshape labor markets around the globe. It influences the types of jobs and abilities that will be needed in the near future.
The result is varying economic paths within and between nations, both richer and poorer ones.
Additionally, the fourth industrial revolution, evolving employee and customer expectations, and the pressing requirement for a more ecological and more sustainable economy are altering the makeup of various industries' workforces and fueling the demand for novel professions and skill sets.
Increased geopolitical instability, financial uncertainty, inflation, and increased raw material costs create escalating risks. International suppliers must rapidly adjust to those risks.
Different income countries have different labor market situations due to recent economic and political challenges.
While some developed nations have recovered from the COVID-19 crisis, many developing countries still struggle with high unemployment rates. For instance, South Africa's unemployment rate increased to 30% post-crisis compared to before the crisis. (Figure 1.1)
Figure 1.1: Unemployment rate across G20 countries
This affects industries such as hospitality and tourism that lockdowns impacted heavily. After the pandemic, some countries recovered faster than others. Advanced economies had more resources to help workers and companies during the crisis.
Emerging economies didn't have as much money to help, so they struggled more. In 2022, many high-income countries saw job growth again.
Some industries even faced worker shortages. For instance, European factories couldn't produce enough because there weren't enough workers.
People who worked as nurses, plumbers, software developers, or truck drivers were particularly sought after .(see Figure 1.2)
Figure 1.2: Most common shortages by occupation in 2020 in Europe
Many companies in the US had trouble filling job openings in retail, wholesale, and manufacturing. Almost half of all positions were empty in leisure and hospitality. Some workers even planned to leave their jobs soon. A recent survey showed that about 1 in every 5 employees said they wanted to change employers. And this was true in 44 different countries around the world.
Employment levels vary depending on gender, age, and education.
During the pandemic, women lost more jobs than men. According to the World Economic Forum's Global Gender Gap Report 2022, there is only 62.9% gender equality in the labor force.
This percentage is the lowest ever recorded. Younger workers were particularly affected by the pandemic. We estimate that only about half of the global youth employment gap will have reduced by the end of 2022.
We can find the biggest youth employment gaps in Southern Asia, Latin America, Northern Africa, and Eastern Europe. We expect only Europe and North America to have fully recovered at the time of publication. (see Figure 1.3)
Figure 1.3: Youth employment deficit relative to 2019, by sub-region
Workers without much schooling had a harder time during the crisis and took longer to get back to working. Between 2019 and 2021, in some places, unemployment increased for them. It was more than double what happened to workers who went to college or university (Figure 1.4).
Figure 1.4: Change in unemployment, by economy and education level, 2019-2021
Access to social protection.
Social protection measures were introduced in nearly 3,900 cases across 223 economies worldwide. They were maintained from January 2020 to January 2022 to help labor forces affected by COVID-19. Almost 1.2 billion individuals benefited from these measures.
Those measures consisted in wage subsidies, cash transfers, job training, and extended unemployment benefits. However, as these temporary measures are phasing out, more focus needs to be placed on providing adequate social protection to informal workers who make up around 70% of workers in developing and low-income countries, and 18% in high-income nations.
This group represents a significant portion of the labor market that requires improved data representation, immediate financial assistance, and eventual transition into formalized employment. (Figure 1.5)
Figure 1.5: Informal employment and social protection coverage in developing countries
Real wages and cost of living
Many developing countries haven't recovered from the pandemic yet. Global inflation rose in 2020, making life harder for everyone. Workers' pay fell globally by 0.9%. It hurt more in Europe, Latin America, Asia Pacific, and North America.
African workers lost 10.5% of their pay in 2020 but got raises later. Rising food and energy costs pushed millions into poverty.
We need better ways to protect workers without standard jobs or steady pay.
Worker preferences
Numerous workers are willing to switch jobs and are concerned about diverse factors. Those concerns are Salaries, job security, work-life balance, burnout, and diversity, equity, and inclusion.
Surveys reveal that salary is the top priority for changing jobs, followed closely by job security concerns. Workers highly value flexible work arrangements, including flexible hours and remote work options.
Work-life balance is critical, and burnout is an issue for many workers. Additionally, younger generations place great importance on DEI (i.e. Diversity, Equity, and Inclusion) in the workplace.
Training and skill development opportunities are lacking for many workers, causing them to seek external resources for professional growth.
Overall, understanding what matters most to workers when it comes to their job satisfaction and engagement will help policymakers and businesses alike improve working conditions for all.
Employment shifts across sectors
Employment trends vary depending on the industries
Over the last couple of years, there's been a lot of ups and downs when it comes to providing goods and services due to things like lockdowns and supply chain issues. But now, the world economy is bouncing back, which means different types of jobs are becoming more or less common.
A look at some data (Figure 1.6) shows that certain industries saw stronger job growth following the pandemic, like tech and digital communications. Meanwhile, other areas, like hotels and food service, manufacturing, and retail, didn't see as much of a boost.
But overall, we're seeing growth in fields like health care, government work, and professional services. However, some jobs like transportation and media aren't doing as well compared to before the pandemic.
AI will cause even more changes
New developments in artificial intelligence will likely cause more job changes in different industries in the coming years. We've already seen examples of this due to the pandemic. Thereby, governments should keep up with these changes and make rules about using AI technology quickly and flexibly.
This way, they could adjust as needed and let everyone stay safe and know what to expect.
Figure 1.6: Change in employment by sector in selected countries (2019-2021)
Using data collected for The Future of Jobs Report, we found that certain job positions grew rapidly during the last four years. This information provides more insight about which specific jobs were most in demand among employers .(see Figure B1.1)
Seizing opportunities now for creating a better future
Labor market transformations require faster and better ways to move people between companies and industries. This moment provides opportunities for business and government to create good jobs and grow in ways that benefit everyone and protect our planet. We can make choices today that help determine the speed, quality, and direction of economic progress.
By doing so, we can build stronger, fairer, and greener communities. Additionally, Green Energy growth creates new job opportunities across different fields and locations, but political conflicts and living expenses pose challenges.
To gather data for analysis, we polled nearly 800 large corporations that employ more than 11 million employees globally during late 2022 through early 2023.
Jobs on the rise
This study investigates the effects of major trends and tech advancements on employment, required skills, and company plans for workforce adjustments. (65)
Figure B1.1: The most rapidly expanding jobs aid companies in boosting sales and interacting with customers, hiring skilled individuals, and utilizing digital technologies/IT.
These findings come from research jointly carried out by LinkedIn and the Future of Jobs Report 2023. The study lists 100 positions with consistent and worldwide growth during the preceding four years - referred to as "Rising Occupations."
Though ILO and OECD statistics indicate which industries are adding personnel, "Rising Occupations" identify particular job types undergoing significant expansion. According to ILO and OECD data, tech roles make up 16 of the top 100 jobs that are increasing.
Sales and customer engagement roles lead the way with 22, followed by human resources and talent acquisition roles which includes recruitment for tech positions, highlighting challenges in finding talent in a good job market.
There's more details about how increased digital access and new technologies impact job demands in chapter 3.
Notably, sustainability and environment roles rank well, with three of the top 10 being in Figure B1.2. Titles include "Sustainability Analyst."
Chapter 3 looks deeper into the green transition and its effect on job opportunities.
Figure B1.2: Fastest growing job postings on LinkedIn 2018-2022
Going Further
Based on The Future Of Jobs Report from the WEF, Palki Sharma from the channel #FirstPost, stresses on the potential increase of unemployment, as a consequence of the difference between the creation of new jobs VS the destruction of existing ones.
See the video: World Economic Forum: 14 Million Jobs May Be Cut in The Next Five Years | Vantage with Palki Sharma
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