The rise and fall of jobs in the next 5 years
The Future of Jobs report published by the World Economic Forum (WEF) predicts a significant transformation of labor markets in the next five years. Based on input from 800 companies and a dataset of 673 million jobs, the report reveals that 69 million jobs will be created and 83 million positions will be eliminated by 2027. While the net loss of 14 million jobs is equivalent to 2% of current employment, the report highlights the positive impact of big data analytics, management technologies, and cybersecurity on employment growth.
However, the adoption of AI and digitization will result in significant labor-market disruption, with the fastest declining roles being secretarial and clerical positions. This article will delve into the fastest growing and declining jobs over the next five years and explore the impact of AI, digitization, and green energy transition on employment.
Fastest Growing and Declining Jobs:
The WEF report identifies AI machine learning specialists and cybersecurity experts as the fastest-growing roles over the next five years. As 75% of surveyed companies expect to adopt AI technologies by 2027, demand for AI machine learning specialists is expected to grow significantly. Similarly, the demand for cybersecurity experts will increase as cybersecurity threats continue to rise. The report also highlights the opportunities for job creation from investments that facilitate the green transition of businesses and the broader application of ESG standards.
The report predicts that secretarial and clerical roles such as bank tellers and cashiers will be the fastest declining jobs over the next five years. These roles can be automated through AI and digitization, resulting in significant job losses. The report also predicts the elimination of up to 26 million jobs in record-keeping and administrative positions like data entry and accounting.
Impact of AI and Digitization on Employment:
Advancing technology adoption and increasing digitization will cause significant labor market churn, according to the WEF report. The emergence of AI applications like ChatGPT will displace and automate many roles that involve reasoning, communicating, and coordinating. However, the net impact of most technologies will be positive over the next five years as big data analytics, management technologies, and cybersecurity become the biggest drivers of employment growth.
Green Energy Transition and Supply Chain Re-shoring:
The report highlights the opportunities for job creation from investments that facilitate the green transition of businesses and the broader application of ESG standards. The green energy transition will create demand for renewable energy technologies and sustainable infrastructure, resulting in new jobs in renewable energy production, energy storage, and distribution. The report also predicts job growth from the re-shoring of global supply chains as companies look to diversify their supply chains and reduce dependence on a single country.
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The Future of Jobs report predicts a significant transformation of labor markets in the next five years, with the adoption of AI and digitization resulting in significant job losses in secretarial and clerical positions. However, the report also highlights the positive impact of big data analytics, management technologies, and cybersecurity on employment growth. The green energy transition and supply chain re-shoring will also create opportunities for job growth in renewable energy production, energy storage, and distribution. As technology continues to advance and disrupt labor markets, it is important for policymakers and businesses to invest in reskilling and upskilling programs to ensure a smooth transition to a new era of work.
