Green transition and ESG set to drive net job gains says report, but there are set to be job losses as the way the world works changes
The long-held trope of ‘robots stealing our jobs’ has been looking more likely recently, but the reality will probably be more nuanced.
A report published today (May 1) by the World Economic Forum (WEF) suggests that the next five years will see great transition in how the world – and business – operates.
It predicts that almost a quarter of jobs will change by 2027 with 69 million new jobs created and 83 million eliminated.
The Future of Jobs Report 2023 is based on the perspective of 803 companies – collectively employing more than 11.3 million workers – in 27 industry clusters and 45 economies from all world regions.
Job growth is expected to be driven by investment in the green transition and by ESG standards and localization of supply chains.
Robot risk?
On the negative side, there are significant threats to jobs, but it’s not the robots that are the biggest concern.
High inflation, slower economic growth and supply shortages are considered the greatest threats to job growth and although digital and technological transformation will create churn the report expects it to have a net positive impact.
But the changing roles for people will require investment in skills.
“Governments and businesses must invest in supporting the shift to the jobs of the future through the education, reskilling and social support structures that can ensure individuals are at the heart of the future of work,” said Saadia Zahidi, Managing Director, World Economic Forum.
Tech jobs
The net creation of technology jobs is expected to be fuelled by roles related to big data and employment of data analysts and scientists, big data specialists, AI machine learning specialists and cybersecurity professionals is expected to grow on average by 30% by 2027.
Green transition roles likely to be in high demand include renewable energy engineers and solar energy installation and systems engineers.
Those most at risk are clerical or secretarial roles including bank tellers, cashiers and data entry clerks.
“The sustained growth of green jobs is really great news, particularly for job seekers who are facing upheaval in the labour market,” said Sue Duke, Head of Global Public Policy, LinkedIn. “But LinkedIn’s data is clear that while there’s strong demand for talent with green skills, people are not developing green skills at anywhere near a fast enough rate to meet climate targets.
Investing in people
The report also highlights how many companies are intending to invest in their workforce through skills training to boost both productivity and employee satisfaction.
Upskilling should also provide a way for those who are not college educated to boost their careers and earning capabilities.
“Our research found that individuals without degrees can acquire critical skills in a comparable timeframe to those with degrees, highlighting the potential for innovative approaches such as industry micro-credentials and skills-based hiring to tackle skills gaps and talent shortages,” said Jeff Maggioncalda, CEO, Coursera. “However, it will require collective action from public and private sectors to provide the affordable, flexible reskilling pathways at scale that displaced workers need to transition into jobs of the future.”
The full report is available on the WEF website.
