Future of Jobs 2023
Below is a summary of the World Economic Forum report on the Future of Jobs published in May 2023. The full report can be downloaded here
In 2023, the global labor market is characterized by divergent outcomes influenced by economic, health, and geopolitical trends. High-income countries are experiencing tight labor markets, while low- and lower-middle-income nations continue to grapple with elevated unemployment rates compared to pre-pandemic levels. Labor market disparities are also evident at the individual level, particularly for workers with basic education and women who face reduced employment opportunities. Real wages are declining due to a cost-of-living crisis, and concerns about work quality and changing worker expectations are gaining prominence worldwide.
The fourth edition of the Future of Jobs Survey, involving 803 companies across 45 economies, provides comprehensive insights into macroeconomic and technological trends impacting the labor market from 2023 to 2027. Technology adoption remains a significant driver of business transformation, with over 85% of organizations identifying new technologies and expanded digital access as key trends influencing their operations. Environmental, Social, and Governance (ESG) standards also play a crucial role. Other impactful trends include rising living costs, slow economic growth, and investments in green transitions.
The most substantial job creation and destruction effects stem from environmental, technology, and economic trends. Investments in the green transition, ESG standards, and localized supply chains are expected to create jobs, albeit with some displacement. Climate change adaptation and demographic dividends in developing economies also contribute to job creation. Increased adoption of new technologies and digital access will drive job growth, offset by displacement in some companies. Slower economic growth, supply shortages, and rising living costs are factors expected to lead to job losses. Geopolitical divisions and the ongoing COVID-19 pandemic's impact on labor markets are of varying concern to employers.
Regarding technology adoption, big data, cloud computing, and AI are highly favored, with over 75% of companies planning to adopt these technologies. Digital platforms, apps, and e-commerce are also expected to be widely incorporated. However, the impact of most technologies is predicted to be a net positive for job growth, except for humanoid and non-humanoid robots.
The human-machine frontier is evolving more slowly than previously anticipated, with only 34% of tasks performed by machines, and 66% by humans. Automation expectations have decreased, with companies now projecting 42% of tasks to be automated by 2027. Notably, cognitive tasks such as reasoning and communication are becoming more automatable.
The labor market is poised for growth in technology-related roles, sustainability specialists, and agricultural professionals. Conversely, clerical and secretarial roles are expected to decline. Education, agriculture, and digital commerce are areas with significant job growth potential, while administrative roles, traditional security, and factory positions face reductions.
Analytical and creative thinking remain the most important skills, followed by self-efficacy, technological literacy, and working with others. Companies acknowledge the need for skills training, but access to adequate training opportunities is limited. Analytical thinking tops the list of training priorities, followed by creative thinking and AI and big data.
Companies are confident about developing their existing workforce but express concerns about talent availability in the coming years. Improving talent progression processes is a key strategy to attract talent. Workforce development is primarily seen as a responsibility of workers and managers, with on-the-job training and coaching being the most common training methods.
Diversity, equity, and inclusion (DEI) programs are prioritized by many companies, with a focus on women, youth, and individuals with disabilities. Funding for skills training is seen as an effective intervention by governments to connect talent to employment.
In summary, the labor market in 2023 is shaped by a complex interplay of economic, technological, and social factors, with various trends impacting job creation and destruction, skills development, and workforce strategies. Adaptation to changing demands and upskilling are essential to navigate these evolving dynamics.