The World Economic Forum’s recent publication, the Future of Jobs Insight Report for May 2023, offers a comprehensive glimpse into the evolving landscape of global employment. Based on a survey encompassing 803 companies and over 11.3 million employees across 45 economies, this report dissects the anticipated trends, challenges, and strategies that will shape the workforce from 2023 to 2027.
If you want to download the report , please visit - https://www.weforum.org/publications/series/future-of-jobs/
Some of the biggest findings in the survey report
Economic, health and geopolitical trends have created divergent outcomes for labor markets globally in 2023
Technology adoption will remain a key driver of business transformation in the next five years
The largest job creation and destruction effects come from environmental, technology and economic trends.
Within technology adoption, big data, cloud computing and Artificial Intelligence feature highly on likelihood of adoption.
The impact of most technologies on jobs is expected to be a net positive over the next five years.
Employers anticipate a structural labor market churn of 23% of jobs in the next five years.
Large-scale job growth is expected in education, agriculture and digital commerce and trade.
The fastest-declining roles relative to their size today are driven by technology and digitalization
The largest losses are expected in administrative roles and in traditional security, factory and commerce roles.
Analytical thinking and creative thinking remain the most important skills for workers in 2023
Employers estimate that 44% of workers’ skills will be disrupted in the next five years
Six in 10 workers will require training before 2027, but only half of workers are seen to have access to adequate training opportunities today
Skills Outlook and Workforce Strategies
The skills outlook refers to the evolving demands for competencies and expertise across various sectors and professions. It encompasses not only technical skills related to emerging technologies but also soft skills such as adaptability, collaboration, and critical thinking, which are increasingly valued in a dynamic work environment.
Simultaneously, workforce strategies encompass the deliberate plans and initiatives that organizations adopt to attract, develop, and retain talent. These strategies are essential for aligning organizational goals with the capabilities of the workforce, fostering innovation, and enhancing productivity.
Core Skills of 2023
In the current economic climate, analytical thinking and creative problem-solving reign supreme as the fundamental skills sought by employers. These skills not only drive innovation but also provide a competitive edge in navigating complex business landscapes.
Skills on the Rise 2023 - 2027
Looking forward, the demand for skills is set to undergo a notable shift. Emerging technologies such as big data, cloud computing, and artificial intelligence are anticipated to drive significant skill requirements. Additionally, skills related to digital literacy, adaptability, and emotional intelligence are poised to see a surge in demand as businesses adapt to technological advancements.
Top Industries for Increasing Skill Requirements, 2023 - 2027
Industries at the forefront of increasing skill demands include education, agriculture, and digital commerce. These sectors are expected to experience substantial growth, driven by technological integration and evolving consumer preferences.
Barriers to Transformation and Workforce Strategies
Barriers to transformation can manifest in various forms, including resistance to change, insufficient resources, regulatory constraints, and cultural inertia within the organization. Addressing these barriers requires a strategic approach that not only identifies and mitigates challenges but also cultivates a workforce equipped with the necessary skills and mindset to drive innovation and adaptation. Workforce strategies play a pivotal role in overcoming barriers to transformation. These strategies involve equipping employees with the right skills through training and development programs, fostering a culture of agility and continuous learning, and empowering leadership to champion change initiatives effectively. By aligning organizational goals with the capabilities and aspirations of their workforce, organizations can successfully navigate barriers to transformation and capitalize on emerging opportunities.
Primary Barriers to Industry Transformation
Despite the optimistic outlook on technological advancement, companies face formidable barriers to transformation. Notably, 60% of organizations cite local skills gaps as a major hurdle, with an additional 53% struggling to attract top-tier talent. These challenges are particularly pronounced in sectors like electronics, automotive, and aerospace.
Workforce Strategies, 2023 - 2027
To tackle these obstacles head-on, businesses are adopting diverse workforce strategies. Priorities include enhancing talent progression frameworks, offering competitive remuneration packages, and investing in comprehensive learning and development initiatives. Reskilling and upskilling programs are also gaining traction as companies seek to bridge existing skill gaps and prepare for future workforce needs.
Talent Availability and Retention
Ensuring a steady influx of skilled talent remains a critical focus for organizations across industries. Strategies range from refining internal promotion pathways to offering competitive salaries, especially within sectors like government and public services. The integration of business purpose with talent acquisition strategies is becoming increasingly prevalent, underscoring the importance of aligning organizational goals with employee aspirations.
Skills Assessment Mechanisms
Assessing Skills When Hiring
Traditional methods of assessing candidates, such as evaluating work experience and academic qualifications, are being complemented by more nuanced approaches. Skill assessments and psychometric testing are now integral to the hiring process, reflecting a shift towards competency-based recruitment.
Micro credentials (Short Courses and Online Certificates)
Micro credentials are emerging as a pivotal criterion for assessing skills, particularly valued for their flexibility and relevance in today’s rapidly evolving job market. While their adoption varies globally, they are poised to play a more significant role in shaping future workforce dynamics.
Conclusion
The World Economic Forum’s Future of Jobs Insight Report for May 2023 paints a dynamic picture of the global employment landscape, emphasizing the pivotal role of skills development and strategic workforce planning in driving business resilience and innovation. As industries brace themselves for substantial transformations driven by technological advancements and shifting economic paradigms, the imperative to invest in human capital has never been clearer. By aligning strategic objectives with comprehensive talent development strategies, organizations can navigate the challenges ahead and emerge stronger in the evolving global economy.
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