Shifting global trends would create millions of new jobs but also displace millions of others, said a report by the World Economic Forum. The most significant barrier facing both employers and employees is the skills gap.
According to the WEF report, shifting global trends in technology, economy, demographics and the green transition are projected to generate 170 million new jobs by 2030, but also displace 92 million others. It will, even so, result in a net increase of 78 million jobs.
The report was made from data from over 1,000 companies and found that the skills gap is the most significant barrier to business transformation. Nearly 40 per cent of skills required on the job are set to change, and 63 per cent of employers cited the skills gap as the key barrier they face.
Even as skills like artificial intelligence (AI), big data and cybersecurity would see a rapid growth in demand, human skills such as creative thinking, resilience, flexibility and agility will remain critical, said the WEF report. Frontline roles and essential sectors like care and education are expected to see the highest job growth. AI and renewable energy are reshaping the market, increasing demands for jobs in those sectors, the report stated.
"Trends such as generative AI and rapid technological shifts are upending industries and labour markets, creating both unprecedented opportunities and profound risks. The time is now for businesses and governments to work together, invest in skills and build an equitable and resilient global workforce,” Till Leopold, Head of Work, Wages and Job Creation at the World Economic Forum.
JOB MARKET IN 2030
Frontline roles, including farmworkers, delivery drivers, and construction workers, are expected to experience the most significant job growth by 2030. Similarly, care jobs such as nursing professionals and education roles like secondary school teachers are projected to see substantial increases. In parallel, advancements in AI, robotics, and energy systems, particularly in renewable energy and environmental engineering, are anticipated to create more opportunities for specialists in these fields.
Roles such as cashiers and administrative assistants, which are already among the fastest declining, are now joined by graphic designers as generative AI continues to transform the labour market.
The report stated that if the global workforce were represented by 100 people, 59 would need reskilling or upskilling by 2030, but 11 are unlikely to receive it. This situation places over 120 million workers at risk of redundancy in the medium term.
While as many as 77 per cent employers are planning to upskill their workers, 41 per cent plan to reduce their workforce.
GEOPOLITICAL SHIFTS
The rising cost of living is significantly impacting the labour market, with half of all employers anticipating a transformation in their business models. Although global inflation has somewhat eased, ongoing price pressures and slower economic growth are expected to result in the loss of 6 million jobs worldwide by 2030. This scenario is driving an increased demand for skills in resilience, agility, flexibility, and creative thinking.
Demographic changes are also reshaping labour markets. In higher-income countries, ageing populations are creating a heightened demand for healthcare roles. Conversely, in lower-income regions, expanding working-age populations are leading to growth in education professions. Workforce strategies that focus on enhancing talent management, teaching, and mentoring skills are crucial to addressing these disparities.
Geopolitical tensions are a major concern for 34 per cent of businesses. Trade restrictions and shifts in industrial policies are prompting many companies to consider offshoring and reshoring strategies. These pressures are also increasing the demand for skills in areas like cybersecurity.