Future of Job report by World Economic Forum

By Mrgya V

Number of jobs destroyed will be surpassed by number of job created: World Economic Forum report

The social protection system’s gaps are coming to the surface in light of this pandemic and it has added more vulnerabilities for workers, says the report.

Recently released “The Future of job report“ by ”World Economic Forum”  tells something on these lines.There is  growing income inequality, technology driven displacement of jobs and rising societal discord globally. The combined health and economic shocks of 2020 have put economies into freefall, disrupted labour markets and fully revealed the inadequacies of social contracts. 

According to the report, millions of jobs are at risk from the global recession, structural change to the economy and increased automation. Further, the pandemic and the recession has impacted the most to those communities who are already at a disadvantage.

The impact of the crisis is not the same in all the industries . Some businesses have the resources to weather the uncertainties and some do not. For example The Software and IT sector is not shedding their jobs as compared to others. 

“Technology will allow us to work anywhere, anytime sounds extraordinarily attractive. But if it is similar it would allow someone to say that i need to work anytime, anywhere without my own choice. It sounds less attractive.”said Guy Ryder, Director General Of International Labour Organization. Ryder further added the gig economy has created extraordinary vulnerability in the world of work.

The future of the jobs will be technology driven.

In the coming five years, skill gaps continue to be high as demand skills across jobs change in the next five years .The future of work has already arrived to be exacerbated by the dual impact of technology and pandemic recession. Eighty four percent of employers are set to rapidly digitalize the working processes , including the significant expansion of remote work. 

The report adds that the  window of opportunity to reskill and upskill has become shorter in the newly constrained labour market. This applies to those who are likely to stay in their roles. For them, the share of core skill change in the next five year is 40% and 50% of the employees need reskilling.

According to the report, the number of jobs destroyed will be surpassed by the number of jobs created. Employers expect that by 2025, the increasingly redundant jobs will decline. Based on the figures, the report estimates that by 2025, 85 million jobs will be displaced by a shift in division of labour between humans and machines.

The report adds that despite the current economic downturn , a large majority of employers recognize the value of human capital investment. On average, employers expect to provide the reskilling and upskilling to 70% of their employees by 2025. 66% of employers expect returns within one year.

The report says the public sector needs to provide stronger support for reskilling and upskilling for at risk or displaced workers. The public sector will need to create incentive for investment in the markets and the jobs of tomorrow. Additionally it will be important for the government to consider the longer term labour market implications of maintaining , withdrawing or partly continuing the strong COVID-19 crisis support.

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