According to a survey report from the World Economic Forum (WEF), 14 million jobs will disappear worldwide within the next five years. Over 800 companies were part of the survey and the report highlights the issues that can impact the global job market. The mentioned topics include adopting new technologies such as artificial intelligence and other machines, shift to renewable resources and more.
The survey found that while the employers are expected to create 69 million new jobs by 2027, they are also planning to eliminate 83 million positions. This will result in layoff of close to 14 million employees, which is equivalent to 2 per cent of current employees. There are several factors that will impact the labor market during this period.
Increasing use of renewable resources
One of the most significant contributors is that an increasing number of companies are shifting to renewable energy systems and will be a significant contributor to generating new jobs. However, the slower economic growth and high inflation may be responsible for job cuts.
Artificial intelligence
With the introduction of software's like ChatGPT a lot of the companies are looking for ways to adopt some AI software's to make the process easier and faster. Though there are good and bad effects to using AI they are still in trend. These could result in job cuts but at the same time companies will require new workers to help them implement and manage AI tools. The report also forecasts that data analysts and scientists, machine learning specialists, and cybersecurity experts' job requirements will grow by 30 per cent on average by 2027.
But, at the same time robots will soon replace humans in some cases. According to the report by WEF there could be 26 million lower record-keeping and administrative jobs by 2027. It further adds that the data entry clerks and executive secretaries will see the steepest losses.
Slow AI Utilisation
Although automation has expanded slowly in the early part of this decade, only 34 per cent of all business-related tasks are currently performed by machines, showed the survey. This number is just slightly above the figure from 2020. The report further adds that the pace of future adoption has also been revised low as employers believe the reach by 2027 will only be around 42 per cent whereas in 2020, employers thought 47% of tasks would be automated by 2025.
Employee Skills
While the expectation may have been lowered, employers are reconsidering the skills of their employees and are giving more focus on employees that have the ability to efficiently use AI tools more than computer programming. Companies will also need to invest in re-skilling and up-skilling their current employees for the new roles that are expected to be created in the future.
