It is said that the millennial generation has seen more economic shocks in a decade than older generations in their lifetime. Between the European debt crisis that started in 2010, and the COVID crisis that started in 2020, there seemed to be no respite. Just when it seemed that post COVID recovery maybe possible, the labour force has been hit with an existentialist crisis brought upon by advanced forms of generative Artificial Intelligence, that may make the human worker irrelevant.
Since January 2023, almost 200,000 tech workers have been laid off from their jobs. This is massive given that in all of 2022 there were approximately 160,000 layoffs. Of these, over 100,000 jobs were cut by big tech alone. Amazon, Alphabet, Microsoft, Meta.
There are a number of factors that are contributing to the layoffs. At the top of the list is the fact that many companies over hired tech resources during the pandemic. In their company blog in June 2002, 3 months after the worldwide lockdown, Amazon boasted hiring 175,000 additional people worldwide. By the end of 2021 they employed over 1,608,000 people worldwide, over a 100% more than its 798,000 employees at the end of 2019. And this same story was repeated in company after company. With a global downturn, and rising inflation, and phenomenal strides in AI – the chickens came home to roost, and jobs had to be pared.
But it is not just over hiring that has caused this current downturn in jobs, it is other reasons too. The war in Ukraine that was supposed to last a week, is currently in its 34th week, and shows no sign of abating. The war has had a significant impact on the global economy, causing energy prices to rise and disrupting supply chains. This has led to a downturn in jobs, as companies look to reduce their costs.
In addition to this, the fourth industrial revolution is here- which is leading to the development of new products, services, and ways of working. Over and above this (as if more is needed) evolving worker and consumer expectations, and the urgent push for a greener, energy-efficient future are drastically transforming the nature of various sectors, driving the demand for new occupations and skills, while at the same time displacing existing jobs.
The WEF has released the latest Future of Jobs Report which delves into these disruptive changes that is going to have a massive impact on the way we work, if at all. It expects that 69 million jobs will be created in the next 5 years. But the flip side is that 83 million jobs will no longer exist. It is literally a tsunami that is going to hit the jobs market.
The most likely areas where employment will be created will be in AI, sustainability, and business intelligence. Roles that require lower skills – administrative roles, clerical roles will disappear under the onslaught of AI. Roles such as security and policing will disappear as drones and facial recognition technologies take over. As such the economic gap between the haves and have nots will grow wider.
The report highlights key megatrends expected to dramatically reshape the global labour market within the next five years. At the top of the list is the increased adoption of “new and frontier technologies “. These have implications for both workers who have to skill up, organisations who have to adapt to it; and governments who have to set policies and deliver access, skills, and frameworks.
Simultaneously there are worries about climate change, and a move towards ‘green transition’ which nudges industries towards sustainability. Citizens are getting more vocal about climate change. Here too the use of tech to reduce our carbon footprint comes into play, making technology skills even more important.
The traditional structure of work is transforming as well; rigid nine-to-five schedules are giving way to more flexible work models, amplifying the importance of lifelong learning to keep up with evolving job demands. The call for diversity and inclusion in workplaces is louder than ever, reflecting societal aspirations for more equality.
Moreover, the demand for an agile and adaptable workforce is rising, emphasizing the need for individuals to adapt to change swiftly. There’s a growing skills gap, emphasizing the need for proactive skill development initiatives. And finally, our societal fabric is changing. Aging populations pose both unique workforce challenges and opportunities. Key questions on retirement age and pensions need to be answered. And cities and spaces must transform to accommodate aging populations. These key megatrends are essentially the navigational tools that will shape the future of our global job landscape.
The future is fuzzy. And this fuzziness coupled with economic uncertainty has a potential to upend societies. Both government and industry have crucial roles to play to ensure stability of society. Governments need to work on robust policy frameworks that facilitate lifelong learning, bridge the skills gap, and support green transition. Industry, on the other hand, need to foster inclusive, adaptable workplaces and invest in upskilling and reskilling their workforce. While, individuals need to develop the skills that are in demand Only through such concerted efforts can we navigate the transforming job landscape and create a future-ready workforce. The future of work is uncertain, but it is clear that change is coming. By acting now, we can help to ensure that we are prepared for the challenges and opportunities that lie ahead.