Complex Factors Including Technology and Eco-Friendly Policies Presented
Job Prospects Diverge with AI and Other Technological Advances
It is projected that nearly 700 million jobs worldwide will undergo significant changes within the next five years, with 23% of them affected. Due to factors such as slowing economic growth, advancements in technologies like artificial intelligence (AI), and eco-friendly policies, job numbers are expected to fluctuate across various sectors, resulting in a net loss of 14 million jobs by 2027.
The World Economic Forum (WEF) released its "Future of Jobs" report on the 2nd (local time), based on a survey conducted from 2023 to 2027 involving 803 companies employing 11.3 million workers across 27 global industries and 45 economic regions. The survey examined trends, technological developments, and their impacts on occupations.
① The Biggest Impact on Jobs Comes from 'Slowing Economic Growth'
According to the survey results, out of a total of 673 million jobs, 69 million jobs are expected to increase while 83 million will decrease over the next five years, leading to a net reduction of 14 million jobs, which is about 2% of current employment. WEF respondents anticipated above-average changes in industries such as supply chain, transportation, media, entertainment, and sports. Retail and manufacturing sectors were expected to experience below-average changes.
As a result, it is expected that one in every four jobs will undergo significant changes within five years. Saadia Zahidi, WEF Managing Director, described the overall rate of change as "quite high" in an interview with CNBC.
The factors influencing job increases and decreases ranged from technological development to eco-friendly policies. The biggest factors driving job losses were identified as slowing economic growth, supply shortages and rising input costs, and increased consumer living expenses. Although job impacts from technological advancements such as AI are anticipated, companies evaluated that macroeconomic factors have the greatest influence on the labor market.
On the other hand, green investments were mentioned as having a significant job creation effect. More than half of the surveyed companies expected that technological advancements through the adoption of advanced technologies and increased digital access would drive job growth.
② AI Experts Rise, Office Workers Disappear... The Influence of Technology
While macroeconomic factors were cited as the main drivers shaking the overall job market size, technology appears to be the key factor determining job growth and decline.
WEF’s survey analysis showed that technology- and digital-related jobs are growing the fastest among various occupations. AI and machine learning specialists ranked first among rapidly growing jobs, with sustainability experts, business intelligence analysts, and information security analysts also cited as representative examples. Additionally, jobs related to green sectors, such as renewable energy engineers and solar energy equipment installation and system engineers, are rapidly increasing in line with growth in their respective fields.
Technology also determines which jobs disappear. WEF predicted that office or secretarial roles such as bankers, postal clerks, and data entry clerks will decline the fastest. Furthermore, jobs in administrative areas like cashiers, ticket agents, and accounting are expected to decrease by 26 million by 2027.
In fact, over 85% of corporate respondents stated they would expand the adoption of new technologies and increase digital accessibility to drive business innovation. More than 75% of companies said they plan to adopt AI, big data, and cloud computing within five years.
However, the response rate to the question about automation of tasks replacing human labor within the next five years was 42%, down from 47% in the 2020 survey. WEF noted, "Expectations that machines will replace physical tasks may have somewhat decreased, but reasoning, communication, and collaboration are expected to become more automatable," evaluating AI as a key factor in these changes.
③ Skills Companies Want... Analytical and Creative Thinking
Amid significant changes in the job market, the core skill most desired by companies was analytical thinking, followed by creative thinking. Analytical thinking was also identified as the most important skill in the 2020 survey. Comparing the 2018 and 2020 surveys, WEF noted that the increase in respondents identifying creative thinking as a core skill was greater than that for analytical thinking, and this trend is expected to continue.
Along with analytical and creative thinking, WEF introduced that companies also valued skills related to self-efficacy, such as ▲resilience, flexibility, and agility ▲initiative ▲curiosity and lifelong learning.
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