Javier Cámara-Rica 🐝🇪🇸

Summary of The Future of Jobs Report 2020 by the World Economic Forum

The Future of Jobs Report 2020 examines the impact of the COVID-19 pandemic and technological advancements on global labor markets, projecting trends for 2020–2025. It combines insights from business leaders, including chief executives and HR officers, with data from LinkedIn, Coursera, ADP, and FutureFit.AI to analyze workforce transformations across 15 industries and 26 countries.

Key Findings:

1. Pandemic and Technology-Driven Disruption:
   • The COVID-19 crisis and technological advancements have created a “double-disruption” scenario, accelerating automation and remote work while deepening economic inequalities.
   • By 2025, automation is expected to displace 85 million jobs but create 97 million new roles, driven by the green economy, data and AI, engineering, and care sectors.
   • Job creation is slowing compared to job destruction, with 43% of surveyed businesses planning workforce reductions due to technology integration, while 34% plan expansions.
2. Technology Adoption:
   • Technologies like cloud computing, big data, e-commerce, encryption, non-humanoid robots, and AI are priorities for businesses.
   • By 2025, human and machine task hours are projected to equalize, transforming job roles and required skills.
3. Skills and Reskilling Needs:
   • High-demand skills include critical thinking, problem-solving, active learning, resilience, and digital skills like data analysis and programming.
   • About 40% of workers will need reskilling of six months or less, with 94% of employers expecting employees to learn new skills on the job (up from 65% in 2018).
   • Core skills for current roles are expected to change by 40%, with 50% of employees needing reskilling.
4. Remote and Hybrid Work:
   • 84% of employers are rapidly digitalizing processes, with 44% of workforces potentially shifting to remote work.
   • Challenges include productivity concerns (78% of leaders expect negative impacts) and well-being issues, with 34% of employers focusing on creating community and addressing mental health challenges.
5. Impact on Equality:
   • The pandemic has disproportionately affected lower-wage workers, women, and younger workers, exacerbating inequalities.
   • In the U.S., unemployment surged, with women and lower-educated workers facing higher job losses. For example, U.S. unemployment peaked at 14.7% in April 2020.
6. Online Learning Surge:
   • Online learning has increased significantly, with a four-fold rise in individual learning, five-fold in employer-provided training, and nine-fold in government-supported programs.
   • Employed workers focus on personal development, while unemployed workers prioritize digital skills like data analysis and IT.
7. Business and Policy Responses:
   • 66% of employers see a return on investment in upskilling within a year, but 17% are uncertain due to economic constraints.
   • Companies plan to reskill 70% of employees by 2025, though only 42% of workers currently engage in employer-supported training.
   • Public sector support is lagging, with only 21% of businesses accessing public funds for reskilling. Stronger safety nets and incentives are needed.
8. Industry-Specific Insights:
   • Oil and Gas: High technology adoption (e.g., IoT, AI, cloud computing) with emerging roles like Renewable Energy Engineers and declining roles like Administrative Secretaries. 42.6% of workers are at risk of displacement.
   • Professional Services: Focus on analytical thinking, AI, and digital marketing roles, with 48% workforce skills instability and 51% planning workforce expansion.
   • Transportation and Storage: Emphasis on big data and AI, with emerging roles like Supply Chain Specialists and 47.1% planning to expand contractor use.

Recommendations:

• Businesses: Invest in reskilling, leverage ESG metrics, and redeploy displaced workers (46% planned redeployment).
• Governments: Enhance support for reskilling, provide safety nets, and incentivize investments in future jobs.
• Collaboration: Public-private partnerships are critical to address the scale and speed of workforce transitions.

The report underscores the urgency of a “Global Reset” to create equitable, sustainable labor markets, leveraging technology to unlock human potential while addressing inequalities and supporting displaced workers.