The Future of Jobs looks like this…
The rapid growth of technology and the changing nature of work have had a profound impact on the job market, resulting in the creation of new jobs and the destruction of existing ones. The World Economic Forum (WEF) published its Future of Jobs Report 2023, which highlights potential changes in labor markets in the United States, Canada, and Asia over the next five years.
The market for new positions in software development, healthcare, data analytics, and renewable energy will increase. Due to automation and artificial intelligence, employment in traditional industries such as accounting, banking, and manufacturing may diminish. The research also stresses the value of reskilling and upskilling to keep up with the shifting demands of the labor market.
The survey predicts a rise in employment opportunities in the fields of healthcare, information technology, and renewable energy in Canada as well. Investments made by the Canadian Government investments in clean energy and infrastructure development will result in the creation of new jobs in these fields. The Report also emphasizes how automation could lead to a loss of jobs in sectors including retail, finance, and insurance.
Asia: The Next Tech & Healthcare Hub?
Jobs in technology and healthcare are predicted to become more prevalent in Asia, and people will need to upskill and reskill to keep up with changing job market demands. The research also emphasizes the increased employment opportunities in the financial, renewable energy, and e-commerce industries. The research does, however, issue a warning that the continued automation of the manufacturing and agricultural sectors may result in the loss of jobs in these industries.
The COVID-19 epidemic, claims the paper, has sped up the use of digital technology in the workplace, increasing the need for digital skills. Over 85 million jobs will be lost to automation and digitalization by 2025, while 97 million new positions will be created. Therefore, to fulfill the needs of the evolving job market, workers must upskill and reskill.
Skill Gaps & Inability to Attract Talent Troubling Industries?
However, some of the barriers highlighted by the WEF report indicate skills gaps and an inability to attract talent. These are apparently impeding industry transformation, with 60% of surveyed companies highlighting the difficulty of bridging skills gaps locally and 53% identifying their inability to attract talent as the main barrier to transforming their business.
By a wide margin, surveyed companies report that “investing in learning and training on the job and automating processes are the most common workforce strategies that will be adopted to deliver their organization’s business goals in the next five years,” the report indicates.
If one observes the talent availability outlook, the WEF report finds that more than 60% of respondents in Latvia, Sweden, and the Netherlands have a negative outlook, while around 60% of respondents in Austria and Saudi Arabia are more positive. Interestingly, more populous economies, such as China and India, are more positive than the global average.
Looking at sectoral differences, Research, Design, and Business Management Practices are the most optimistic about hiring talent, while Energy Technologies and Utilities and the Medical and Healthcare Services industries are the most pessimistic about talent availability.
Soft Skills are the new Hard Skills
Meanwhile, it emphasizes how crucial soft skills like emotional intelligence, problem-solving, and critical thinking are becoming in the labor market. Soft skills will become more valuable in the workplace as automation and AI replace regular activities. According to the research, training initiatives should concentrate on fostering these competencies to equip workers for the labor market of the future.
While 81% of companies consider investing in learning and on-the-job training to be a key strategy for delivering their business goals, only 34% consider providing reskilling and upskilling as a way to increase talent availability specifically. In fact, executives see the link between articulating business purpose and impact and higher talent availability.
The Future of Jobs Report 2023 concludes by highlighting probable job market changes that could happen in the United States, Canada, and Asia over the next five years. Automation will result in employment losses in some industries, but it will also create new jobs in fast-growing industries like technology, healthcare, and renewable energy.
As a result, workers must reskill and upskill to keep up with the needs of a changing labor market. When creating training programs for employees, it is also important to take into account the report's emphasis on the growing significance of soft skills and emotional intelligence.
So, what are the strategies your company is looking to employ with respect to skill-based training and the talent crunch?
(Author: Gaurav Mukherjee is a social media intern at TechDoQuest. His diverse interests keep him engaged and excited about life.)