Document Details

ProudJadeite2094

Uploaded by ProudJadeite2094

Box Hill Institute

2025

Saadia Zahidi

Tags

global labor market future of jobs generative AI workforce transformation

Summary

This report from the World Economic Forum analyses the evolving global labor market in 2025, focusing on the impact of transformative breakthroughs, like generative artificial intelligence, economic volatility, and societal expectations. It examines job growth and loss, skills disruption, and reskilling strategies for the future of work.

Full Transcript

Future of Jobs Report 2025 INSIGHT REPORT JANUARY 2025 January 2025 Future of Jobs Report 2025 Terms of use and disclaimer The findings, interpretations and conclusions and the World Economic Forum will not be liable to expressed in thi...

Future of Jobs Report 2025 INSIGHT REPORT JANUARY 2025 January 2025 Future of Jobs Report 2025 Terms of use and disclaimer The findings, interpretations and conclusions and the World Economic Forum will not be liable to expressed in this work do not necessarily reflect users for any claims brought against users by third the views of the World Economic Forum. The report parties in connection with their use of any data. presents information and data that were compiled The World Economic Forum, its agents, officers and/or collected by the World Economic Forum and employees do not endorse or in any respect (all information and data referred herein as “Data”). warrant any third-party products or services by Data in this report is subject to change without virtue of any data, material or content referred to notice. The terms country and nation as used in or included in this report. Users shall not infringe this report do not in all cases refer to a territorial upon the integrity of the data and in particular entity that is a state as understood by international shall refrain from any act of alteration of the data law and practice. The terms cover well-defined, that intentionally affects its nature or accuracy. If geographically self-contained economic areas that the data is materially transformed by the user, this may not be states but for which statistical data are must be stated explicitly along with the required maintained on a separate and independent basis. source citation. For data compiled by parties other than the World Economic Forum, users must Although the World Economic Forum takes every refer to these parties’ terms of use, in particular reasonable step to ensure that the data thus concerning the attribution, distribution, and compiled and/or collected is accurately reflected reproduction of the data. When data for which the in this report, the World Economic Forum, its World Economic Forum is the source (herein “World agents, officers and employees: (i) provide the data Economic Forum”), is distributed or reproduced, “as is, as available” and without warranty of any it must appear accurately and be attributed to the kind, either express or implied, including, without World Economic Forum. This source attribution limitation, warranties of merchantability, fitness requirement is attached to any use of data, whether for a particular purpose and non-infringement; (ii) obtained directly from the World Economic Forum make no representations, express or implied, as to or from a user. Users who make World Economic the accuracy of the data contained in this report or Forum data available to other users through any its suitability for any particular purpose; (iii) accept type of distribution or download environment agree no liability for any use of the said data or reliance to make reasonable efforts to communicate and placed on it, in particular, for any interpretation, promote compliance by their end users with these decisions, or actions based on the data in this terms. Users who intend to sell World Economic report. Other parties may have ownership interests Forum data as part of a database or as a stand- in some of the data contained in this report. The alone product must first obtain the permission from World Economic Forum in no way represents or the World Economic Forum ([email protected]). warrants that it owns or controls all rights in all data, World Economic Forum All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, 91-93 route de la Capite or transmitted, in any form or by any means, CH-1223 Cologny/Geneva electronic, mechanical, photocopying, or otherwise Switzerland without the prior permission of the World Economic Tel.: +41 (0)22 869 1212 Forum. Fax: +41 (0)22 786 2744 E-mail: [email protected] ISBN 978-2-940631-90-2 www.weforum.org Copyright © 2025 https://www.weforum.org/reports/the-future-of- by the World Economic Forum jobs-report-2025/ Future of Jobs Report 2025 2 January 2025 Future of Jobs Report 2025 Contents Preface 4 Key findings 5 Part I: The Future of Jobs 2025 7 Introduction: The global labour market landscape in 2025 8 1 Drivers of labour-market transformation 10 1.1 Expected impact of macrotrends on business 10 transformation 2 Jobs outlook 18 2.1 Total job growth and loss 18 2.2 Expected impact of macrotrends on employment 25 3 Skills outlook 32 3.1 Expected disruptions to skills 32 3.2 Drivers of skill disruption 43 3.3 Reskilling and upskilling strategies 45 4 Workforce strategies 49 4.1 Barriers to transformation 49 4.2 Improving talent availability 52 5 Region, economy and industry insights 65 5.1 Region and economy insights 65 5.2 Industry insights 81 Conclusions 94 Endnotes 95 Appendix: Report Methodology 97 User Guide - Economy, Region, and Industry Profiles 108 Contributors 284 Collaborators 285 Acknowledgments 286 Disclaimer This document is published by the World Economic Forum as a contribution to a project, insight area or interaction. The findings, interpretations and conclusions expressed herein are a result of a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum, nor the entirety of its Members, Partners or other stakeholders. © 2025 World Economic Forum. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system. Future of Jobs Report 2025 3 January 2025 Future of Jobs Report 2025 Preface Saadia Zahidi Managing Director World Economic Forum Over the past decade, the World Economic Forum’s the emerging jobs landscape for the 2025-2030 bi-annual Future of Jobs Report has followed period. This report would not be possible without evolving technological, societal and economic their openness to contributing their views and trends to understand occupational disruption and insights, and we sincerely thank them all. We greatly identify opportunities for workers to transition to the appreciate, too, the support of our survey partners, jobs of the future. which have enhanced the report’s geographical coverage. As we enter 2025, the landscape of work continues to evolve at a rapid pace. Transformational These perspectives are further enriched by research breakthroughs, particularly in generative artificial collaborations and data partnerships with ADP, intelligence (GenAI), are reshaping industries and Coursera, Indeed and LinkedIn, whose innovative tasks across all sectors. These technological data and analysis complement the survey findings. advances, however, are converging with a broader array of challenges, including economic volatility, This publication has been made possible by the geoeconomic realignments, environmental dedication and expertise of its project team: challenges and evolving societal expectations. In Till Leopold, Attilio Di Battista, Ximena Játiva, response, this fifth edition of the Future of Jobs Shuvasish Sharma, Ricky Li and Sam Grayling, Report expands its focus, offering a comprehensive alongside the wider team at the Centre for the New analysis of the interconnected trends shaping the Economy and Society. global labour market. The disruptions of recent years have underscored Central to the report is a unique dataset derived the importance of foresight and collective action. from an extensive survey of global employers. This We hope this report will inspire an ambitious, year’s edition captures the perspectives of over multistakeholder agenda – one that equips workers, 1,000 employers – representing more than 14 businesses, governments, educators and civil million workers across 22 industry clusters and 55 society to navigate the complex transitions ahead. economies – providing unparalleled insights into Future of Jobs Report 2025 4 January 2025 Future of Jobs Report 2025 Key findings Technological change, geoeconomic fragmentation, engineers and electric and autonomous vehicle economic uncertainty, demographic shifts and the specialists, all among the 15 fastest-growing green transition – individually and in combination jobs. Climate trends are also expected to – are among the major drivers expected to shape drive an increased focus on environmental and transform the global labour market by 2030. stewardship, which has entered the Future of The Future of Jobs Report 2025 brings together Jobs Report’s list of top 10 fastest growing skills the perspective of over 1,000 leading global for the first time. employers—collectively representing more than 14 million workers across 22 industry clusters and – Two demographic shifts are increasingly seen 55 economies from around the world—to examine to be transforming global economies and how these macrotrends impact jobs and skills, and labour markets: aging and declining working the workforce transformation strategies employers age populations, predominantly in higher- plan to embark on in response, across the 2025 to income economies, and expanding working 2030 timeframe. age populations, predominantly in lower-income economies. These trends drive an increase – Broadening digital access is expected to be in demand for skills in talent management, the most transformative trend – both across teaching and mentoring, and motivation and technology-related trends and overall – with self-awareness. Aging populations drive growth 60% of employers expecting it to transform in healthcare jobs such as nursing professionals, their business by 2030. Advancements in while growing working-age populations fuel technologies, particularly AI and information growth in education-related professions, such processing (86%); robotics and automation as higher education teachers. (58%); and energy generation, storage and distribution (41%), are also expected to be – Geoeconomic fragmentation and geopolitical transformative. These trends are expected to tensions are expected to drive business model have a divergent effect on jobs, driving both transformation in one-third (34%) of surveyed the fastest-growing and fastest-declining roles, organizations in the next five years. Over one- and fueling demand for technology-related fifth (23%) of global employers identify increased skills, including AI and big data, networks and restrictions on trade and investment, as well cybersecurity and technological literacy, which as subsidies and industrial policies (21%), are anticipated to be the top three fastest- as factors shaping their operations. Almost growing skills. all economies for which respondents expect these trends to be most transformative have – Increasing cost of living ranks as the second- significant trade with the United States most transformative trend overall – and the top and/or China. Employers who expect trend related to economic conditions – with geoeconomic trends to transform their business half of employers expecting it to transform are also more likely to offshore – and even more their business by 2030, despite an anticipated likely to re-shore – operations. These trends reduction in global inflation. General economic are driving demand for security related job slowdown, to a lesser extent, also remains roles and increasing demand for network and top of mind and is expected to transform 42% cybersecurity skills. They are also increasing of businesses. Inflation is predicted to have demand for other human-centred skills such a mixed outlook for net job creation to 2030, as resilience, flexibility and agility skills, and while slower growth is expected to displace 1.6 leadership and social influence. million jobs globally. These two impacts on job creation are expected to increase the demand Extrapolating from the predictions shared by for creative thinking and resilience, flexibility, and Future of Jobs Survey respondents, on current agility skills. trends over the 2025 to 2030 period job creation and destruction due to structural labour-market – Climate-change mitigation is the third-most transformation will amount to 22% of today’s transformative trend overall – and the top trend total jobs. This is expected to entail the creation related to the green transition – while climate- of new jobs equivalent to 14% of today’s total change adaptation ranks sixth with 47% and employment, amounting to 170 million jobs. 41% of employers, respectively, expecting these However, this growth is expected to be offset by trends to transform their business in the next the displacement of the equivalent of 8% (or 92 five years. This is driving demand for roles such million) of current jobs, resulting in net growth of as renewable energy engineers, environmental 7% of total employment, or 78 million jobs. Future of Jobs Report 2025 5 – Frontline job roles are predicted to see the most prominent skills differentiating growing largest growth in absolute terms of volume from declining jobs are anticipated to comprise and include Farmworkers, Delivery Drivers, resilience, flexibility and agility; resource Construction Workers, Salespersons, and Food management and operations; quality control; Processing Workers. Care economy jobs, such programming and technological literacy. as Nursing Professionals, Social Work and Counselling Professionals and Personal Care Given these evolving skill demands, the scale of Aides are also expected to grow significantly workforce upskilling and reskilling expected to be over the next five years, alongside Education needed remains significant: if the world’s workforce roles such as Tertiary and Secondary Education was made up of 100 people, 59 would need Teachers. training by 2030. Of these, employers foresee that 29 could be upskilled in their current roles and 19 – Technology-related roles are the fastest- could be upskilled and redeployed elsewhere within growing jobs in percentage terms, including their organization. However, 11 would be unlikely to Big Data Specialists, Fintech Engineers, AI and receive the reskilling or upkskilling needed, leaving Machine Learning Specialists and Software their employment prospects increasingly at risk. and Application Developers. Green and energy transition roles, including Autonomous and Skill gaps are categorically considered the biggest Electric Vehicle Specialists, Environmental barrier to business transformation by Future of Engineers, and Renewable Energy Engineers, Jobs Survey respondents, with 63% of employers also feature within the top fastest-growing roles. identifying them as a major barrier over the 2025- 2030 period. Accordingly, 85% of employers – Clerical and Secretarial Workers – including surveyed plan to prioritize upskilling their workforce, Cashiers and Ticket Clerks, and Administrative with 70% of employers expecting to hire staff with Assistants and Executive Secretaries – are new skills, 40% planning to reduce staff as their expected to see the largest decline in absolute skills become less relevant, and 50% planning to numbers. Similarly, businesses expect the transition staff from declining to growing roles. fastest-declining roles to include Postal Service Clerks, Bank Tellers and Data Entry Clerks. Supporting employee health and well-being is expected to be a top focus for talent attraction, On average, workers can expect that two-fifths with 64% of employers surveyed identifying it (39%) of their existing skill sets will be transformed as a key strategy to increase talent availability. or become outdated over the 2025-2030 period. Effective reskilling and upskilling initiatives, along However, this measure of “skill instability” has with improving talent progression and promotion, slowed compared to previous editions of the are also seen as holding high potential for talent report, from 44% in 2023 and a high point of 57% attraction. Funding for - and provision of - reskilling in 2020 in the wake of the pandemic. This finding and upskilling are seen as the two most welcomed could potentially be due to an increasing share of public policies to boost talent availability. workers (50%) having completed training, reskilling or upskilling measures, compared to 41% in the The Future of Jobs Survey also finds that adoption report’s 2023 edition. of diversity, equity and inclusion initiatives remains on the rise. The potential for expanding talent – Analytical thinking remains the most sought- availability by tapping into diverse talent pools is after core skill among employers, with seven highlighted by four times more employers (47%) out of 10 companies considering it as essential than two years ago (10%). Diversity, equity and in 2025. This is followed by resilience, flexibility inclusion initiatives have become more prevalent, and agility, along with leadership and social with 83% of employers reporting such an initiative influence. in place, compared to 67% in 2023. Such initiatives are particularly popular for companies – AI and big data top the list of fastest-growing headquartered in North America, with a 96% skills, followed closely by networks and uptake rate, and for employers with over 50,000 cybersecurity as well as technology literacy. employees (95%). Complementing these technology-related skills, creative thinking, resilience, flexibility and agility, By 2030, just over half of employers (52%) along with curiosity and lifelong learning, are anticipate allocating a greater share of their revenue also expected to continue to rise in importance to wages, with only 8% expecting this share to over the 2025-2030 period. Conversely, manual decline. Wage strategies are driven primarily by dexterity, endurance and precision stand out goals of aligning wages with workers’ productivity with notable net declines in skills demand, with and performance and competing for retaining talent 24% of respondents foreseeing a decrease in and skills. Finally, half of employers plan to re- their importance. orient their business in response to AI, two-thirds plan to hire talent with specific AI skills, while 40% While global job numbers are projected to anticipate reducing their workforce where AI can grow by 2030, existing and emerging skills automate tasks. differences between growing and declining roles could exacerbate existing skills gaps. The Future of Jobs Report 2025 6 January 2025 Future of Jobs Report 2025 Part I: The Future of Jobs 2025 Future of Jobs Report 2025 7 January 2025 Future of Jobs Report 2025 Introduction: The global labour market landscape in 2025 The year 2025 unfolds amid ongoing 21.7%, it stands at just 10.1% for high-income transformations in global labour markets. Since economies, rising to 17.3% for upper-middle the COVID-19 pandemic, rising cost of living, income ones. The rate then jumps to 25.9% for geopolitical conflicts, the climate emergency and lower-middle income economies and 27.6% for economic downturns have added further turbulence low-income ones. to technology-driven global employment changes. While the global economic outlook appears to be The jobs gap – a measure by the International stabilizing, it does so amid weaker global growth Labour Organization (ILO) to incorporate a projections of 3.2% for 2025.1 Global inflation broader understanding of unemployment and appears to have eased and is now projected underemployment – adds additional nuance to to reach 3.5% by the end of 2025 – below the our understanding of the labour-market situation. average global rate of the first two decades of the Similarly to global headline unemployment, the jobs 21st century. However, living costs remain elevated gap has been decreasing and stood at a need for around the world. 402 million additional jobs in 2024. While most of the world has experienced this downward trend, Aided by a stabilizing economic outlook and easing low-income economies saw their jobs gap increase inflation, the global unemployment rate, at 4.9%,2 by 0.4 percentage points compared to pre- stands at the lowest level since 1991. However, pandemic levels. Lower-middle income economies this headline figure hides a range of disparities. saw the largest reduction in the jobs gap (by 2 While middle-income countries are experiencing percentage points compared to 2019 levels). reductions in unemployment, low-income countries Across all country income groups, the jobs gap have seen an increase, from 5.1% in 2022 to 5.3% for women is higher than that for men, but gender by 2024. differences are most pronounced in low-income and especially lower-income economies, where the Reductions in unemployment have also lagged jobs gap for women surpasses that of men by 7.5 for women. Since 2020, when the global percentage points. unemployment rate peaked for both sexes at 6.6%, the rate for men has declined to 4.8%, while the The global labour-force participation rate has rate for women remains elevated at 5.2%. This rebounded after a drop during the pandemic and trend is driven mainly by lower-middle income now stands at similar levels to 2019 for all income countries, where the female unemployment rate groups except lower-middle income economies. (of 5.5%) is 1.1% higher than the male equivalent. In lower-income economies the labour-force High-income countries have an unemployment rate participation rate has spiked beyond the levels seen gender disparity of 0.4%; however, this disparity in 2019. This is noteworthy considering lower- has existed for over a decade – rather than opening middle income economies – who make up around up during the post-COVID recovery. For low- 40% of the global population – will drive the bulk of income and upper-middle income countries, male working-age population growth in the coming years and female unemployment rates remain even. and decades. The combination of growing working- age populations and labour-force participation rates Youth unemployment rates tell another story emphasizes the importance of job creation in these of labour-market health. While the global youth economies. unemployment rate has tracked the total global unemployment rate, it remains elevated at 13%. Against the backdrop of this current labour-market Assessing rates of youth not in employment landscape, the Future of Jobs Report 2025 analyses education or training (NEETs) highlights disparities how organizations expect the labour market to between economies at different national income evolve over the next five years until 2030. Like levels. While the global NEET rate remains flat at previous editions of the report, this analysis is Future of Jobs Report 2025 8 based on the World Economic Forum’s Future and decline fastest, and the trends driving these of Jobs Survey, conducted in late 2024, which changes. Chapter 3 looks at projected changes brings together the perspectives of more than to the skills needed in the labour market, before 1,000 global employers, collectively employing Chapter 4 analyses the workforce practices that more than 14.1 million workers across 22 industry employers plan to adopt in their organizations. clusters and 55 economies. The survey highlights Finally, Chapter 5 provides insights for the nine how macrotrends and technology will influence regions, 55 economies, and 22 industry clusters industry transformation and employment, the jobs that meet the report’s statistical thresholds for and skills outlook over the next five years and the standalone analysis. The appendix provides a corresponding workforce transformation strategies detailed overview of the report’s survey and analysis companies plan to use to address these issues. methodology. The report begins by outlining five macrotrends In addition, the Future of Jobs Report 2025 features impacting the labour market – technological a comprehensive set of Region, Economy and change, the green transition, geoeconomic Industry Profiles. User guides are provided for each fragmentation, economic uncertainty and of these profiles to support their use as practical, demographic shifts. In Chapter 2, the report standalone tools. discusses how organizations expect jobs to evolve, including which jobs are predicted to grow Future of Jobs Report 2025 9 January 2025 Future of Jobs Report 2025 1 Drivers of labour-market transformation Technological developments, the green transition, required skills. This chapter provides a picture of macroeconomic and geoeconomic shifts, and how companies expect these macrotrends to drive demographic changes are driving transformation in industry transformation by 2030. the global labour market, reshaping both jobs and 1.1 Expected impact of macrotrends on business transformation FIGURE 1.1 Macrotrends driving business transformation Share of employers surveyed that identify the stated trend as likely to drive business transformation. Broadening digital access 60% Rising cost of living, higher prices or inflation 50% Increased efforts and investments to reduce carbon emissions 47% Increased focus on labour and social issues 46% Slower economic growth 42% Increased efforts and investments to adapt to climate change 41% Ageing and declining working-age populations 40% Increased geopolitical division and conflicts 34% Growing working-age populations 24% Increased restrictions to global trade and investment 23% Increased government subsidies and industrial policy 21% Stricter anti-trust and competition regulations 17% 0 20 40 60 80 100 Share of employers surveyed (%) Demographic shifts Economic uncertainty Geoeconomic fragmentation Green transition Societal issues Technology change Source World Economic Forum, Future of Jobs Survey 2024. Technological change all regions selecting this trend. This growing digital access is a critical enabler for new technologies to transform labour markets (Figure 1.1). More employers – 60% – expect broadening digital access to transform their business than any other The Future of Jobs Survey asked employers how trend, with similar proportions of employers across advances in nine key technologies are transforming Future of Jobs Report 2025 10 their business. Of the nine technologies, three stand intelligence (AI) and information processing out as being expected to have the greatest impact. technologies that are expected to have the biggest Robots and autonomous systems are expected impact – with 86% of respondents expecting these to transform 58% of employers’ businesses, technologies to transform their business by 2030 while energy generation and storage technologies (Figure 1.2). are expected to transform 41%. But it is artificial FIGURE 1.2 Technology trends driving business transformation, 2025-2030 Share of employers surveyed that identify the stated technology trend as likely to drive business transformation AI and information processing technologies 86% Robots and autonomous systems 58% Energy generation, storage and distribution 41% New materials and composites 30% Semiconductors and computing technologies 20% Sensing, laser and optical technologies 18% Quantum and encryption 12% Biotechnology and gene technologies 11% Satellites and space technologies 9% 0 20 40 60 80 100 Share of employers surveyed (%) Source World Economic Forum, Future of Jobs Survey 2024. Generative AI (GenAI), in particular, has witnessed a workplace studies have identified various initial rapid surge in both investment and adoption across ways for generative AI to enhance human various sectors. Since the release of Chat GPT skills and performance. Some of these studies in November 2022, investment flows into AI have have highlighted ways for generative AI to increased nearly eightfold.3 This influx of capital has enhance human core skills, or to substitute been accompanied by investment in the physical for tacit knowledge among newer or average infrastructure needed to support these emerging performing workers.7,8 Other studies have shown technologies, including servers and energy generative AI can enhance knowledge work if generation plants. By leveraging natural language applied appropriately within its capability, but processing technology, GenAI enables users to risks producing adverse outcomes where users interact with it as though they were conversing with unknowingly stretch it beyond its capability.9 a human, considerably reducing barriers to usage and the need for specialized technical knowledge.4 Looking further ahead, some observers argue Accordingly, the demand for GenAI skills by generative AI could empower less specialized both businesses and individuals has also grown employees to perform a greater range of “expert” significantly (Box B1.1). tasks – expanding the possible functions of roles such as Accounting Clerks, Nurses, and Teaching Although more generalized adoption of AI Assistants.10 Similarly, the technology could applications remains comparatively low, with only equip skilled professionals such as Electricians, a small fraction of firms using it in 2023, adoption Doctors or Engineers with the world’s forefront is growing rapidly, albeit unevenly across sectors. knowledge – enabling them to solve complex The information technology sector is leading problems more efficiently.11 Outcomes such as the way in AI adoption, while industries such as these – which create genuine shifts in the quantity construction are lagging behind.5 This disparity or quality of output – are more likely to come about mirrors broader trends, with advanced and middle- if technology development is focused on enhancing income economies experiencing unprecedented rather than substituting for human capabilities.12 diffusion of generative AI technologies among However, without appropriate decision-making individual users, while low-income economies frameworks, economic incentive structures and, remain largely on the margins, with currently possibly, government regulations, there remains a minimal use of this technology.6 risk that technological development will be focused on replacing human work, which could increase While the full extent of long-term productivity inequality and unemployment. gains from the technology remains uncertain, Future of Jobs Report 2023 11 While currently seen as less transformative than Germany.15 This is partially reflected in Future GenAI, robots and autonomous systems have of Jobs Survey data, which shows significant seen steady growth of around 5-7% annually since expectations for the transformative impact of these 2020.13 In 2023, global average robot density technologies in these five countries (more than reached 162 units per 10,000 employees, double 60% of respondents in each); but much lower the number measured seven years ago.14 Currently expectations among employers headquartered in robot installations are heavily concentrated, Sub-Saharan Africa (39%), Central Asia (45%) and with 80% of installations occurring in China, the Middle East and North Africa (44%). Japan, United States, the Republic of Korea, and BOX 1.1 Demand for generative AI skills In collaboration with Coursera Coursera data generated for the Future of Jobs conceptual topics, such as prompt engineering, Report 2025 reveals significant growth in demand trustworthy AI practices, and strategic decision- for Generative AI training among both individual making around AI. Institution-sponsored learners and enterprises (Figure B1.1). Demand learners, on the other hand, emphasize practical for AI skills has accelerated globally, with India applications within the workplace, including and the United States leading in enrolment leveraging AI tools to enhance efficiency in numbers. However, the drivers of demand differ. Excel or leveraging the technology to develop In the United States demand is primarily driven applications. These trends reflect a tailored by individual users, whereas in India, corporate approach to GenAI learning, where individuals sponsorship plays a significant role in boosting focus on foundational knowledge-building while GenAI training uptake. organizations prioritize training that delivers immediate workplace productivity gains. Globally, individual learners on Coursera have focused on foundational GenAI skills and FIGURE B1.1 Demand for generative AI skills Generative AI enrolment trend 2022-2024. 300,000 250,000 200,000 Enrolments 150,000 100,000 50,000 0 01/2022 04/2022 07/2022 10/2022 01/2023 04/2023 07/2023 10/2023 01/2024 04/2024 07/2024 10/2024 Enrolment month Total consumer enrolments Total enterprise enrolments Source Coursera analysis. Future of Jobs Report 2023 12 Economic uncertainty larger share of household expenditures in these countries.19 Globally, governments are responding to geoeconomic challenges by imposing trade As of early 2025, the global economic outlook and investment restrictions, increasing subsidies, appears to be shaped by a combination of and adjusting industrial policies. The World Trade cautious optimism and persistent uncertainties. Organization (WTO) reports that trade restrictions According to the World Economic Forum’s doubled between 2020 and 2024, with the value September 2024 Chief Economists Outlook,16 of import restrictions reaching nearly 10% of global while there are signs of improving global imports in 2024.20 These increasing protectionist conditions, vulnerabilities persist. Most surveyed measures may pose a medium-term risk to global chief economists (54%) expect economic economic growth, as they reduce opportunities conditions to hold steady in the short term. for open innovation and technology transfer – However, among those anticipating change, factors that historically fuelled growth in emerging more expect conditions to worsen rather than economies during periods of globalization.21 strengthen. This shift toward geoeconomic fragmentation The 2024 economic performance was marked by a carries substantial macroeconomic implications, global decrease in inflation and an unusually resilient with the IMF estimating potential global output economy throughout the disinflationary process. losses from trade fragmentation ranging from 0.2% While easing inflation and looser monetary policy to 7% of GDP, and losses deepening in scenarios offer some optimism, slow growth and political of technological decoupling.22 Emerging and volatility keep many countries at risk of economic developing economies are particularly vulnerable to shocks. The International Monetary Fund (IMF) such disruptions. For example, Sub-Saharan Africa projects growth to hold steady at 3.2 percent in could see long-term welfare losses of approximately 2025, despite sizable downward growth revisions 4% of GDP due to declining global integration.23 in a few economies, particularly low-income developing ones.17 The Future of Jobs Survey reveals that around one- third (34%) of surveyed employers see heightened Despite this comparatively steady outlook, price geopolitical tensions and conflicts as a key driver pressures persist in many economies. Inflation of organizational transformation. Meanwhile just remains particularly high in services – at almost twice over one-fifth of surveyed organizations identify pre-pandemic levels – and is especially persistent increased restrictions on trade and investment in low-income countries. Low-income countries (23%), as well as subsidies and industrial policies are disproportionately affected by rising inflationary (21%), as factors reshaping their operations. pressures because of elevated food prices due to supply disruptions influenced by climate shocks, Geoeconomic concerns vary by economy. regional conflicts and geopolitical tensions.18 Employers in Eastern Asia and Northern America identify rising geoeconomic fragmentation as a Against this backdrop, companies expect economic key driver shaping labour markets, with nearly half pressures to be among the most transformative of surveyed employers in these regions citing this drivers. Figure 1.1 shows rising cost of living remains trend. These regions also show significant concern a top concern, with half of all surveyed employers about restrictions on global trade and investment, expecting it to drive transformation, making it the though to a lesser extent than in the Middle East second-most influential trend. Slower economic and North Africa. Economies with comparatively growth is also a major concern, with 42% of high trade volumes with the United States, China, respondents expecting it to impact their operations. or both – such as Singapore (64%) and the Republic of Korea (71%) – tend to expect greater Views on the impact of inflation and economic transformation from each of these geoeconomic growth notably vary across regions. For example, trends, as shown in Figure 1.3 below. in Sub-Saharan Africa, six in 10 respondents cite inflation as a key factor, whereas in Eastern and South-Eastern Asia, slower economic growth is seen as the more important issue. Finally, stricter anti-trust and competition regulations, though a lower priority overall, are expected to impact one in six employers globally Geoeconomic fragmentation Intensifying geoeconomic tensions threaten trade and supply chains, with lower-income economies particularly vulnerable, given that essential goods like food and energy comprise a Future of Jobs Report 2025 13 FIGURE 1.3 Geoeconomic trends, by economy Share of employers surveyed that expect the stated geoeconomic trend to transform their business. Viet Nam Singapore Indonesia Republic of Korea Increased restrictions to global trade and investment Malaysia Malaysia Uzbekistan Egypt Nigeria Increased government subsidies and industrial policy Thailand Singapore Malaysia Republic of Korea Singapore Increased geopolitical division and conflicts Canada Saudi Arabia 0 10 20 30 40 50 60 70 80 Share of employers surveyed (%) Exposure to China Exposure to China and US Exposure to US Exposure to neither China nor US Source World Economic Forum, Future of Jobs Survey 2024. On an industry level, as shown in Figure 1.4, sectors with a high degree of dependence on global supply chains, such as Automotive and Aerospace (46%), and Mining and Metals (55%), expect industry transformation driven by trade restrictions. By contrast, industries with less exposure to global markets, such as Education, are less focused on this trend, with fewer than 14% of surveyed employers seeing trade restrictions as disruptive. Mining and Metals, Advanced Manufacturing, and Oil and Gas anticipate industry transformation stemming from increased government subsidies and industrial policies, with, respectively, 31%, 33%, and 40% of employers across these industries citing these factors; whereas more domestic-focused sectors such as Accommodation, Food, and Leisure expect minimal impact from such policies. The broader implications of geoeconomic fragmentation extend beyond individual business strategies to long-term economic stability and growth, and limit multilateral cooperation on critical issues such as climate change and pandemic preparedness.24 Future of Jobs Report 2025 14 FIGURE 1.4 Geoeconomic trends, by industry cluster Share of employers surveyed that expect the stated geoeconomic trend to transform their business. Chemical and advanced materials Oil and gas Mining and Metals Advanced manufacturing Automotive and Aerospace Increased geopolitical division and conflicts Chemical and advanced materials Mining and Metals Automotive and Aerospace Advanced manufacturing Oil and gas Increased government subsidies and industrial policy Chemical and advanced materials Oil and gas Advanced manufacturing Automotive and Aerospace Mining and Metals Increased restrictions to global trade and investment 10 15 20 25 30 35 40 45 50 55 60 Share of employers surveyed (%) Accommodation, Food, and Leisure Advanced manufacturing Agriculture, forestry, and fishing Automotive and Aerospace Chemical and advanced materials Education and training Electronics Energy technology and utilities Financial services and capital markets Government and public sector Information and technology services Infrastructure Insurance and pensions management Medical and healthcare services Mining and Metals Oil and gas Production of consumer goods Professional Services Real estate Retail and wholesale of consumer goods Supply chain and transportation Telecommunications Source World Economic Forum, Future of Jobs Survey 2024. Green transition The Future of Jobs Survey finds that the industrial sector – encompassing industries such as Despite an increasingly complex outlook for global Automotive and Aerospace, and Mining and climate negotiations, the green transition remains Metals – anticipates significant organizational a priority for many organizations globally. Nearly transformation as companies ramp up efforts half of surveyed employers (47%) anticipate the to decarbonize: 71% of employers in the ramping up of efforts and investments to reduce Automotive and Aerospace industry and 69% of carbon emissions as a key driver for organizational those in the Mining and Metals industry expect transformation. Similarly, 41% expect that increased carbon emissions reductions to transform their efforts and investments to adapt to climate change organizations. Given the carbon-intensive nature of will drive significant organizational changes. These these industries,26 decarbonization will significantly two trends rank 3rd and 6th, respectively, among transform these industries and their workforces, the drivers of business transformation identified by with workers requiring upskilling and reskilling to the Future of Jobs Survey. These priorities have transition to alternative jobs. enabled green jobs to demonstrate resilience in recent years, with hiring rates in green sectors A similar picture emerges across regions. For remaining relatively stable even throughout the example, in South-Eastern Asia, 72% of employers pandemic-related disruptions of 2020.25 expect climate mitigation efforts to transform their Future of Jobs Report 2025 15 organizations by 2030, while over half expect also relatively tempered, illustrating relatively greater climate adaptation to do so. By contrast, in Central concern with other macrotrends (Figure 1.5). Asia, only 19% of respondents see climate trends as relevant to their business activities. Compared to global averages, employers facing the effects of aging population are more pessimistic As countries seek to meet climate goals, questions about talent availability and expect facing bigger arise regarding whether their workforces are challenges in attracting industry talent. More equipped with the necessary skills to meet the encouragingly, with a shrinking labour pool, many demands of a net-zero future. The shift toward of these companies (60%) increasingly prioritize sustainable practices will require specialized transitioning current employees into growing roles as expertise which will incur transition costs, a key workforce strategy. Some observers have also particularly for those working in production predicted that aging high-income economies with occupations such as assemblers and fabricators.27 shrinking labour forces might increasingly look to Despite a global 12% increase in workers acquiring deeper automation to counterbalance some of these green skills between 2022 and 2023, demand demographic trends.31 For example, the Future of continues to outpace supply, with the number Jobs Survey finds that employers expecting to be of job postings requiring at least one green skill impacted by aging populations are more likely to rising by nearly 22% over the same period. To fully accelerate process automation (79% versus 73% capitalize on opportunities created by the green globally) and advance workforce augmentation (67% transition and harness them in a way that is fair and versus 63% globally) in the next five years. inclusive, prioritizing green skilling is essential. Conversely, many economies’ actual ability to leverage demographic dividends will depend on Demographic shifts their accompanying success, or otherwise, in inclusive job creation. According to the World Bank, over the next 10 years, an unprecedented 1.2 The world is currently experiencing two fundamental billion young people in emerging economies will demographic shifts: an aging and declining become working-age adults, while the job market working-age population predominantly in higher- in these economies is only expected to create 420 income economies, due to declining birth rates and million additional jobs – risking leaving nearly 800 longer life expectancy, and a growing working-age million young people in economic uncertainty.32 population in many lower-income economies, where Encouragingly, employers responding to the Future younger populations are progressively entering of Jobs Survey that identify growing working-age the labour market. In higher-income nations, populations as a driver of transformation plan aging populations are increasing dependency to prioritize reskilling and upskilling, with 92% ratios, potentially putting greater pressure on a indicating they will be focusing on these strategies smaller pool of working-age individuals and raising by 2030. concerns about long-term labour availability. In contrast, lower-income economies may benefit from a demographic dividend. These demographic shifts have a direct impact on global labour supply: currently balanced between lower-income (49%) and higher-income (51%) working-age populations, this distribution is expected to shift by 2050, with lower-income countries projected to hold 59% of the global working-age population.29 Geographies with a demographic dividend, such as India and Sub- Saharan African nations, will supply nearly two-thirds of new workforce entrants in the coming years.30 Findings from the Future of Jobs Survey indicate that for 40% of employers worldwide, aging and declining working-age populations are driving transformation, while 25% are being transformed by growing working-age populations. Many high- income economies experience the combined effects of both trends. Certain countries, including Australia, Germany and Japan, experience more significant effects from declining working-age populations. While few companies operating in Sub-Saharan African countries expect to see transformation due to aging and declining working age populations, their expectations regarding the impact of growing working-age populations are Future of Jobs Report 2025 16 FIGURE 1.5 Dual impact of declining and growing labour forces, by economy and income group, 2025-2030 Share of surveyed employers impacted by growing working-age populations and share of surveyed employers impacted by ageing and declining working-age populations. 80 70 Japan Slovenia Impacted by ageing and declining working-age popula- Hungary Republic of Korea Czechia Latvia 60 Estonia Netherlands Belgium Thailand Indonesia Australia Poland France Malaysia Serbia Sweden 50 Viet Nam China Italy United Kingdom Lithuania Germany Singapore Switzerland Denmark Philippines Spain United States of America India tions (%) Romania Norway 40 Global: 40% Canada Hong Kong SAR, China Mexico Brazil Portugal Colombia Austria Ireland Saudi Arabia Greece 30 Israel United Arab Emirates Türkiye South Africa Nigeria 20 Morocco Egypt Kazakhstan Uzbekistan Zimbabwe Argentina 10 Bahrain Tunisia 0 Global: 25% 0 5 10 15 20 25 30 35 40 45 50 Impacted by growing working-age populations (%) High income Lower-middle income Upper-middle income Source World Economic Forum, Future of Jobs Survey 2024. Future of Jobs Report 2025 17 January 2025 Future of Jobs Report 2025 2 Jobs outlook Technological change, the green transition, expect various kinds of jobs to grow and decline economic uncertainty, geoeconomic fragmentation in response to these macrotrends and assesses and demographic shifts are reshaping the labour the role of each of these trends in contributing to market. This chapter analyses how employers labour-market transformation. 2.1 Total job growth and loss By combining respondents’ job growth and decline today’s total employment. This growth is expected expectations with hard data on global employment to be offset by the displacement of 92 million collected by the ILO, the Future of Jobs Report current jobs, or 8% of total employment, resulting 2025 estimates that, by 2030, on current in a net growth of 78 million jobs (7% of today’s predictions, new job creation and job displacement total employment) by 2030, Figure 2.1 illustrates due to macrotrends will represent a combined total the total number of jobs expected to be created of 22% of today’s total (formal) jobs. Specifically, and displaced due to labour-market transformation macrotrend-driven creation of new jobs is estimated relative to total employment today. to amount to 170 million jobs, equivalent to 14% of FIGURE 2.1 Global employment change by 2030 In the next five years, 170 million jobs are projected to be created and 92 million jobs to be displaced, constituting a structural labour market churn of 22% of the 1.2 billion formal jobs in the dataset being studied. This amounts to a net employment increase of 7%, or 78 million jobs. One million jobs Jobs destroyed Jobs stable Jobs created Source Note World Economic Forum, Future of Jobs Survey 2024; Please refer to the Appendix for the methodology. International Labour Organization, ILOSTAT. Growing and declining jobs the next five years. Respondents were then asked to identify the macrotrends and technological The Future of Jobs Survey gathered insights from advancements driving job growth and decline in employers on job roles expected to grow, decline their organizations. or remain stable within their organizations over Future of Jobs Report 2025 18 According to the surveyed executives, the fastest- the fastest growing jobs list are roles such as Big growing job roles by 2030, in percentage terms, Data Specialist, FinTech Engineers, AI and Machine tend to be driven by technological developments, Learning Specialists and Software and Applications such as advancements in AI and robotics and Developers (Figure 2.2). increasing digital access (See section 2.2). Leading FIGURE 2.2 Fastest-growing and fastest-declining jobs, 2025-2030 Top jobs by fastest net growth and net decline, projected by surveyed employers Top fastest growing jobs Big Data Specialists FinTech Engineers AI and Machine Learning Specialists Software and Applications Developers Security Management Specialists Data Warehousing Specialists Autonomous and Electric Vehicle Specialists UI and UX Designers Light Truck or Delivery Services Drivers Internet of Things Specialists Data Analysts and Scientists Environmental Engineers Information Security Analysts Devops Engineer Renewable Energy Engineers -40 -20 0 20 40 60 80 100 120 Net growth (%) Top fastest declining jobs Postal Service Clerks Bank Tellers and Related Clerks Data Entry Clerks Cashiers and Ticket Clerks Administrative Assistants and Executive Secretaries Printing and Related Trades Workers Accounting, Bookkeeping and Payroll Clerks Material-Recording and Stock-Keeping Clerks Transportation Attendants and Conductors Door-To-Door Sales Workers, News and Street Vendors, and Related Workers Graphic Designers Claims Adjusters, Examiners, and Investigators Legal Officials Legal Secretaries Telemarketers -40 -20 0 20 40 60 80 100 120 Net growth (%) Source World Economic Forum, Future of Jobs Survey 2024. Future of Jobs Report 2025 19 While technology trends partly contribute to the alongside other technology trends, are additional growth of security-related roles such as Security contributing factors. Management Specialists, which ranks among the top five fastest-growing roles, increased geopolitical By contrast, respondents expect the fastest- fragmentation contributes in large part to the declining roles to include various clerical roles, growth of this role. Driven by the same combination such as Cashiers and Ticket Clerks, alongside of technology and geoeconomic trends, another Administrative Assistants and Executive security-related role, Information Security Analysts, Secretaries, Printing Workers, and Accountants also appears among the top 15. and Auditors. Broadening digital access, AI and information processing technologies, and robots Green and energy-transition roles, including and autonomous systems are the primary drivers Autonomous and Electric Vehicle Specialists, for this decline. Aging and declining working-age Environmental Engineers, and Renewable populations and slower economic growth also Energy Engineers, also feature within the top 15 contribute to the decline in clerical roles. fastest-growing roles. The growth of these roles is driven by increased efforts and investments Figure 2.3 provides the percentage growth and to reduce carbon emissions and adapt to decline, alongside net growth outlook, for all roles climate change. The growing adoption of energy featured in the Future of Jobs Survey that meet generation, storage and distribution technologies, response thresholds. Future of Jobs Report 2025 20 FIGURE 2.3 Job growth and decline (%), 2025-2030 Projected job creation (blue) and displacement (purple) between 2025 and 2030, as a percentage of total current employment in the corresponding job role. The projected net growth or decline for each occupation over the next five years (diamonds) is calculated by subtracting total job displacement from total job creation. Big Data Specialists Chemists and Chemical Laboratory Scientists FinTech Engineers Mechanical Engineers AI and Machine Learning Specialists Architects and Surveyors Software and Applications Developers Secondary Education Teachers Security Management Specialists Garment and Related Trades Workers Data Warehousing Specialists Food Processing and Related Trades Workers Autonomous and Electric Vehicle Specialists Compliance Officers UI and UX Designers Financial and Investment Advisers Light Truck or Delivery Services Drivers Health and Education Services Managers Internet of Things Specialists 4 Sheet and Structural Metal Workers... Data Analysts and Scientists Arbitrators, Mediators, and Conciliators Environmental Engineers Relationship Managers Information Security Analysts Special Education Teachers Devops Engineer Electrical Equipment Installers and Repairers Renewable Energy Engineers Construction Laborers Robotics Engineers 5 Sales Representatives, Wholesale... Blockchain Developers Building Framers, Finishers, and Related Trades Workers Data Engineers Sales and Purchasing Agents and Brokers Digital Transformation Specialists Chemical Processing Plant Operators Process Automation Specialists Vocational Education Teachers Sustainability Specialists Social Work and Counselling Professionals Renewable Energy Technicians Primary School and Early Childhood Teachers System Engineers 6 Manufacturing, Mining, Construction... Organisational Development Specialists Food and Beverage Serving Workers Online Learning Managers Shop Salespersons Digital Marketing and Strategy Specialists Power Production Plant Operators Environmental Protection Professionals Managing Directors and Chief Executives Solar Energy Installation and System Engineers Human Resources Specialists Database and Network Professionals General and Operations Managers Car, Van and Motorcycle Drivers Financial Analysts Full Stack Engineers Mechanics and Machinery Repairers Food Scientists and Technologists Heavy Truck and Bus Drivers ICT Operations and User Support Technicians Lawyers 1 Drafters, Engineering Technicians... Mining, Petroleum and Other Extraction Workers E-commerce Specialists Survey Researchers Strategic Advisors Assembly and Factory Workers Social Media Strategist Chemical Engineers Hotel and Restaurant Managers Client Information and Customer Service Workers Business Development Professionals Security Guards Personal Care Aides Recruiters and Technical Recruiters Product Managers Insurance Underwriters, Valuers, and Loss Assessors Business Intelligence Analysts Building Caretakers, Cleaners and Housekeepers Energy Engineers Paralegals and Legal Assistants Advertising and Public Relations Professionals Business Services and Administration Managers Database Architects Statistical, Finance and Insurance Clerks 2 Farmworkers, Labourers,... Accountants and Auditors Risk Management Specialists Concierges and Hotel Desk Clerks Project Managers Credit and Loans Officers Sales and Marketing Professionals Telemarketers Social Scientists and Related Workers Legal Secretaries Supply Chain and Logistics Specialists Legal officials Economists Claims Adjusters, Examiners, and Investigators Management and Organisation Analysts Graphic Designers University and Higher Education Teachers 7 Door-To-Door Sales Workers... 3 Water Transportation Workers Transportation Attendants and Conductors Industrial and Production Engineers Material-Recording and Stock-Keeping Clerks Chefs and Cooks Accounting, Bookkeeping and Payroll Clerks Electrotechnology Engineers Printing and Related Trades Workers Nursing Professionals Administrative Assistants and Executive Secretaries Media and Communication Workers Cashiers and Ticket Clerks Civil Engineers Data Entry Clerks Regulatory and Government Associate Professionals Bank Tellers and Related Clerks Training and Development Specialists Postal Service Clerks -50 0 +50 +100 -50 0 +50 +100 Share of current workforce (%) Share of current workforce (%) Jobs created Jobs displaced Net growth or decline Note 1 Drafters, Engineering Technicians, and Mapping Technicians; 2Farmworkers, Labourers, and Other Agricultural Workers; 3Water Transportation Workers, including Ship and Marine Cargo Workers, Controllers, and Source Technicians; 4Sheet and Structural Metal Workers, Moulders and Welders; 5Sales Representatives, Wholesale and Manufacturing, Technical and Scientific Products; 6Manufacturing, Mining, Construction, and Distribution World Economic Forum, Future of Jobs Survey 2024. Managers; 7Door-To-Door Sales Workers, News and Street Vendors, and Related Workers Future of Jobs Report 2025 21 To approximate the total impact of job growth Care Aides are expected to see significant growth and decline, this report combines the job outlook over the next five years, driven by demographic expectations of surveyed employers with estimates trends, especially aging populations. Increased of the total number of workers in the corresponding focus on labour and social issues is also identified roles, based on ILO employment data. However, the as a contributing factor. Future of Jobs data set only provides information on roles for which survey data availability meets a Education-related roles such as University and minimum coverage threshold, and corresponds to Higher Education Teachers and Secondary 1.18 billion workers in total, which is a subset of Education Teachers are also predicted to be among the ILO’s total employment data. The conclusions the biggest job creators in absolute terms over the derived for this subset should not be treated as

Use Quizgecko on...
Browser
Browser