The Future of Jobs Report 2023 examines the evolution of jobs and skills over the next five years, highlighting significant disparities in labor markets globally. High-income countries face tight labor markets, while low-income nations experience increased unemployment post-COVID-19. The report analyzes insights from 803 companies across 27 industry clusters and emphasizes that technology adoption, particularly in AI and digital platforms, will drive business transformation. While job creation is expected in technology and green sectors, traditional roles face decline due to automation and digitalization. Skills such as analytical and creative thinking will be crucial, yet only half of workers have access to adequate training. Companies plan to prioritize upskilling in critical areas, particularly in AI and big data. The report underscores the need for effective workforce strategies to address skills gaps, with a focus on diversity, equity, and inclusion.
| name | description | change | 10-year | driving-force | relevancy |
|---|---|---|---|---|---|
| Diverging Labor Market Outcomes | High-income countries face tight labor markets while low-income countries struggle with unemployment. | Shift from a unified labor market to divergent outcomes between high and low-income countries. | In 10 years, labor markets may be more polarized, with increased disparities in employment opportunities. | Global economic trends, health impacts, and digital transformation are reshaping labor markets. | 4 |
| Growing Importance of Cognitive Skills | Employers are increasingly prioritizing analytical and creative thinking skills over traditional skills. | Transition from manual and basic skills to a focus on cognitive and creative problem-solving abilities. | In 10 years, cognitive skills may dominate job requirements, diminishing the value of basic education. | Technological advancement and workplace complexity necessitate higher cognitive capabilities. | 5 |
| Automation Slowdown | Businesses are automating tasks at a slower pace than previously expected, adjusting future automation predictions. | Shift from rapid automation expectations to a more gradual integration of technology in the workforce. | In 10 years, the workforce may remain more human-centric, with a focus on collaboration with machines. | Concerns about job displacement and the need for human skills are tempering automation plans. | 4 |
| Focus on Environmental and Social Governance (ESG) | Companies are increasingly adopting ESG standards, impacting job creation and corporate strategies. | Shift from traditional business practices to a stronger emphasis on sustainability and social responsibility. | In 10 years, ESG considerations may be central to business operations and job creation strategies. | Rising consumer expectations and regulatory pressures are driving the adoption of ESG practices. | 5 |
| Training Disparities | Many workers lack access to adequate training, despite a high demand for reskilling. | Transition from limited training opportunities to a growing recognition of the need for comprehensive workforce development. | In 10 years, equitable access to training could become a priority, influencing workforce readiness. | The skills gap and evolving job requirements are prompting calls for better training access. | 4 |
| Increased Job Churn | A projected 23% job churn indicates significant structural changes in employment landscapes. | Shift from stable employment to a more dynamic and evolving job market with high turnover. | In 10 years, job stability may decline, with workers frequently transitioning between roles. | Technological and economic pressures are reshaping the nature of work and employment. | 4 |
| Focus on DEI Initiatives | Companies prioritize diversity, equity, and inclusion, especially for women, youth, and disabled individuals. | Shift from traditional hiring practices to more inclusive approaches in workforce development. | In 10 years, DEI initiatives may be standard practice, influencing company culture and hiring. | Social movements and changing workforce demographics are driving the push for inclusion. | 5 |
| name | description | relevancy |
|---|---|---|
| Increasing Unemployment in Low-Income Countries | High unemployment rates persist in low and lower-middle-income countries, contrasting with tighter labor markets in high-income nations. | 5 |
| Cost-of-Living Crisis | Declining real wages and a rising cost of living are affecting worker satisfaction and quality of work. | 5 |
| Automation vs. Job Growth | While automation may drive job growth in some areas, it also risks significant displacement in traditional roles. | 4 |
| Skill Disruption | Over 44% of worker skills are expected to be disrupted within five years, causing potential talent shortages. | 4 |
| Inadequate Access to Training | Only half of workers currently have access to adequate training opportunities, hindering skill development. | 4 |
| Geopolitical Divisions Impacting Labor Markets | Increased geopolitical tensions might negatively influence labor market dynamics and job stability. | 4 |
| Divergent Job Market Outcomes | Labor market outcomes are unequal, with specific groups like women and low-educated workers facing harsher conditions. | 3 |
| Digital and Technological Displacement | Jobs in traditional sectors are at risk due to exponential advancements in digital technologies and automation. | 4 |
| Supply Chain Vulnerability | Supply shortages are a significant macrotrend that is impacting job growth and market stability. | 4 |
| Environmental Transition Pressure | The shift towards green jobs may not balance the displacement of jobs in traditional sectors adequately. | 4 |
| name | description | relevancy |
|---|---|---|
| Divergent Labor Market Outcomes | High-income countries face tight labor markets, while low-income countries experience higher unemployment, indicating a global disparity in job availability. | 5 |
| Increased Technology Adoption | Organizations are increasingly adopting technologies like AI, big data, and digital platforms, which are expected to drive business transformation and job growth. | 5 |
| Green Transition Investments | Investments in sustainability and ESG standards are expected to create jobs while also causing some job displacement, reflecting a shift towards environmentally conscious business practices. | 4 |
| Structural Labor Market Churn | A projected 23% of jobs will experience disruption due to emerging roles and declining traditional roles, indicating significant changes in job composition. | 5 |
| Skills Disruption | 44% of workers’ skills are expected to be disrupted, highlighting the need for upskilling and reskilling initiatives in the workforce. | 5 |
| Focus on Cognitive Skills | Analytical and creative thinking are identified as the most important skills for workers, reflecting a shift towards cognitive skill requirements in the workforce. | 4 |
| Emphasis on DEI Initiatives | Companies are prioritizing diversity, equity, and inclusion programs, focusing on women, youth, and individuals with disabilities to enhance workforce diversity. | 4 |
| Shift in Workforce Development Responsibility | Organizations expect workforce development to be a shared responsibility among workers and managers, moving away from reliance on external training solutions. | 4 |
| Talent Availability Concerns | Companies express concern over talent availability, identifying skills gaps as a barrier to industry transformation, necessitating improved talent progression processes. | 5 |
| Automation and Job Displacement | Despite slower-than-expected automation, AI and technology adoption are projected to create job churn, with both job growth and displacement occurring. | 5 |
| name | description | relevancy |
|---|---|---|
| Big Data Analytics | Utilizing advanced analytics and processing of large datasets to drive insights and decision-making. | 5 |
| Cloud Computing | Providing on-demand computing resources and services over the internet, enabling scalability and flexibility for businesses. | 5 |
| Artificial Intelligence (AI) | Implementing intelligent systems capable of performing tasks that typically require human intelligence, such as reasoning and decision-making. | 5 |
| Digital Platforms and Apps | Utilizing software applications and platforms to facilitate digital commerce and enhance operational efficiency. | 5 |
| E-commerce and Digital Trade | Engaging in the buying and selling of goods and services through digital platforms, transforming traditional commerce. | 5 |
| Education and Workforce Technologies | Innovative technologies that enhance learning and development in the workforce, adapting to new job demands. | 5 |
| Environmental Management Technologies | Technologies aimed at managing environmental impacts and promoting sustainability in business operations. | 5 |
| Cybersecurity Technologies | Tools and practices designed to protect systems and data from cyber threats and unauthorized access. | 5 |
| Robotics | The design and use of robots for automation and efficiency in various industries, including humanoid and non-humanoid robots. | 4 |
| Distributed Ledger Technologies | Decentralized databases that maintain a record of transactions across multiple locations, enhancing transparency and security. | 4 |
| name | description | relevancy |
|---|---|---|
| Divergent Labour Market Outcomes | High-income countries face tight labour markets while low-income countries experience increased unemployment post-pandemic. | 4 |
| Cost-of-Living Crisis | Declining real wages and changing worker expectations are leading to concerns about job quality globally. | 5 |
| Technological Transformation | Increased adoption of new technologies is expected to reshape jobs and skills significantly over the next five years. | 5 |
| Environmental, Social, and Governance (ESG) Standards | Broader application of ESG standards is anticipated to impact business operations and job creation. | 4 |
| Automation and Job Displacement | The anticipated pace of automation and its impact on job roles is a growing concern among employers. | 5 |
| Skills Gap and Workforce Development | A significant proportion of workers will require training, highlighting gaps in skills and training opportunities. | 5 |
| Diversity, Equity, and Inclusion (DEI) Initiatives | Employers are prioritizing women, youth, and individuals with disabilities in their DEI programs, indicating a shift in hiring practices. | 4 |
| Impact of Geopolitical Divisions | Increasing geopolitical divisions are expected to disrupt labor markets and affect employment dynamics. | 4 |
| Green Transition Jobs | Investments in green technologies and sustainability are expected to create new job opportunities. | 5 |
| Cognitive Skills Demand | Growing importance of analytical and creative thinking skills in the workforce underscores the need for continuous learning. | 4 |