Certainly, it’s no new news that Automation, AI, ML, and various digital innovations are changing the fundamental nature of jobs. It wouldn’t be an understatement to say that the world of work is in a state of flux. A substantial rise of new and evolved roles is evident on one side. On the other hand, speculation of traditional job roles weaning away is popular. According to the World Economic Forum’s Future of Jobs Report 2023, nearly a quarter of all jobs (23%) are predicted to change over the next five years due to growth of 10.2% and loss of 12.3%.
Macrotrends including the shift to a greener economy, ESG standards, and localised supply chains are the main forces behind job creation, with supply shortages, high inflation, and slower economic development posing the biggest risks. Similarly, advanced technology and the rapid pace of digitisation are also expected to induce significant market churn with an overall net positive in job creation.
The prominence of some more traditional occupations is anticipated to decline, despite the fact that roles centred on sustainability and technology are expanding. Online banking has negatively impacted the relevance of physical banks. Similarly, the growing pace of automation, sensor technologies and online services are reducing roles of many physical roles like service clerks, cashiers and even ticketing staff.
In order to offset anticipated job losses, the global effort to decarbonize in response to the climate catastrophe is creating a multitude of green jobs across industries. According to estimates from the International Energy Agency, a green recovery scenario could result in an additional 3.5% rise in the global GDP and a net addition of 9 million jobs annually.
By 2030, the green shift might generate 30 million new employment worldwide in the clean energy, efficient, and low-emissions industries. But even if the number of green jobs has been increasing for the past four years, the rate of reskilling and upskilling in green job roles has not kept up.
Environmental, technological, and economic developments have the most impact on both the creation and destruction of jobs. Over the next five years, the majority of technologies are anticipated to have a net positive impact on jobs. The biggest job-creating technologies are anticipated to be those related to big data analytics, environmental management technology, encryption, and cybersecurity. Agriculture technologies, digital platforms and apps, e-commerce and digital trade, and AI will significantly disrupt the labour market. However, many companies also project that these changes will result in job displacement within their own organisations, which will be partially offset by job growth elsewhere, creating a net positive impact on the economy.
Many investment management businesses are reviewing their current operating models as a result of the requirement for a flexible and efficient business approach to keep up with the rapidly changing market conditions. Organisations seeking long-term success will need a distinguishing and nimble edge as the industry is being reshaped by digital technology, a difficult financial outlook, and strong competition.
The world is changing as we know it. There is pressure not only from the technology front but also from the environment. It is expected that many traditional job roles will have to adapt to new demands of the market that are propelled by advanced technology and changing demographics too. While employers need to prepare to meet such large-scale changes in demands by investing in training, upskilling and reskilling. Prospective employees also need to be flexible, open and adaptive to the changing technology, processes and job asks.
Note: This article, written by Mr. Vidur Gupta, Director & Co-founder of Spectrum Talent Management, was originally published in Times of India.