WEF Report Reveals Workforce Transformation by 2030

Why in the news?

The World Economic Forum’s report forecasts a significant shift in the global labor market by 2030, driven by technological advancements, automation, and demographic changes, with millions of jobs displaced and new skills required for future employment.

WEF Report Reveals Workforce Transformation by 2030

About Global Workforce Transformation by 2030:

  • The World Economic Forum report, based on data from over 1,000 global companies across 22 industries and 55 economies, reveals a significant transformation in the labor market by 2030.
  • Job Disruption: 22% of jobs will be affected by automation and other factors. While 170 million new jobs will be created, 92 million jobs will be displaced, resulting in a net gain of 78 million jobs.

Key Drivers of Change

  • Technological Advancements: Emerging technologies, especially AI, machine learning, and FinTech, are the leading drivers behind the transformation.
  • Economic Uncertainty and Demographic Shifts will also contribute to job changes.
  • The Green Transition is expected to influence new roles in environmental sectors.
  • Fast-Growing Roles: Frontline jobs, such as farmworkers, delivery drivers, and nursing professionals, will experience substantial growth in terms of absolute numbers.
  • Declining Roles: Traditional jobs like graphic designers and administrative assistants will see significant declines due to automation.

Reskilling and Upskilling Needs

  • A staggering 59% of the workforce will need reskilling or upskilling to stay relevant in the new labor landscape.
  • 40% of the future job skills will be entirely new, focusing on AI, big data, technological literacy, creativity, and resilience.
  • AI Adoption: Companies are increasingly using AI tools for routine tasks, with 41% planning workforce reductions as a result.
  • Bridging the skill gap will be essential for businesses to thrive in this rapidly changing environment.

Key points :World Economic Forum (WEF)

  • Type: Non-governmental, non-profit organization based in Geneva, Switzerland.
  • Founder: Established in 1971 by economist Klaus Schwab, who is also the chairperson.
  • Objective: Aims to demonstrate entrepreneurship in the global public interest with a focus on high standards of governance.
  • Funding: Largely funded by corporate partners.
  • Annual Summit: Held in Davos, Switzerland, with this year’s theme focusing on ‘Cooperation in a Fragmented World’.

Major Reports Published by WEF:

  • Global Competitiveness Report
  • Global IT Report
  • Global Gender Gap Report
  • Global Energy Transition Index
  • Global Risk Report
  • Global Travel and Tourism Report

Sources Referred:

PIB, The Hindu, Indian Express, Hindustan Times