The future of work is going to be a wild ride! The World Economic Forum's Future of Jobs Report 2023 is out, and it's predicting some major changes in the global labor market. From the green transition to digitization, the report highlights the trends and technologies that will shape the job market over the next five years. But fear not! Startups are poised to play a crucial role in creating new jobs and supporting workers through the transition to new roles. Let's take a closer look at the report's findings.
The State of the Labor Market: A Net Decrease of 14 Million Jobs
The global labor market is in a state of flux, with the digital revolution, the drive towards sustainability, and other factors, causing unprecedented change. The World Economic Forum's Future of Jobs Report 2023 reveals that 23% of jobs are expected to change in the next five years, with 69 million new jobs created and 83 million jobs eliminated, resulting in a net decrease of 14 million jobs, or 2% of current employment.
Macrotrends such as the green transition, ESG standards, and localization of supply chains, are driving job growth, while economic challenges such as high inflation, slower economic growth, and supply shortages pose a threat. Technology adoption and digitization will also cause significant labor market churn, with an overall net positive in job creation.
The Rise of High-Demand Specializations
The report reveals that autonomous and electric vehicle specialists are in high demand, with more than 40% growth expected in the next five years. AI and machine learning specialists, environmental protection professionals, sustainability specialists, fintech engineers, and several analyst roles are all set to experience more than 30% growth.
However, as the digital and sustainability revolutions continue to transform the labor market, some traditional roles are expected to fall. Bank teller and related clerk jobs are expected to see an estimated 40% decline before the end of the decade, with postal service clerks, cashier and ticket office clerks, and data entry staff expected to decline by more than a third in the next five years.
In response to the climate crisis, global efforts to decarbonize are giving rise to a wealth of green jobs across sectors and industries, but there is a lack of reskilling and upskilling towards green skills. The green transition could create 30 million jobs globally in clean energy, efficiency, and low-emissions technologies by 2030.
Startups: The Key to Creating New Jobs
Startups have a crucial role to play in this changing labor market. They have the agility and flexibility to adapt to new trends and technologies quickly and efficiently, making them ideally placed to create new jobs and take advantage of emerging opportunities.
Startups that focus on autonomous and electric vehicles, AI and machine learning, environmental protection, sustainability, fintech, and data analysis are well-positioned to take advantage of the changing labor market. They can create jobs in these high-growth areas and offer training and upskilling programs to help workers transition to new roles.
Investment in Education and Reskilling: The Way Forward
The Future of Jobs Report 2023 highlights the need for investment in education, reskilling, and social support structures to ensure individuals are at the heart of the future of work. Startups can play a crucial role in this by offering training and upskilling programs to workers who may be at risk of losing their jobs due to changing trends and technologies.
In conclusion, the labor market is undergoing unprecedented change, with new trends and technologies creating new opportunities and causing some traditional roles to decline. Startups have a critical role to play in creating new jobs and supporting workers through the transition to new roles. With investment in education, reskilling, and social support structures, the future of work can be one of resilience and growth.