Labor market transformations: expected changes in employment patterns

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Technological revolution has been one of the many reasons in numerous workforces’ losses; however, other global challenges (sustainability, green transition and climate mitigation) also added to the process of expected job losses. Governments have to employ the emerging opportunities and empower them to navigate the existing labor force problems. Generative artificial intelligence (AI) supplemented recently the employment disruptions…  

     As the World Economic Forum, WEF’s “Future of Jobs Report-2020” predicted, “after widespread instability in the last three years across the world of work”, there would be some hope for global community in better preparing in navigating social, environmental and technological transitions to assist workers, businesses, governments, educators and civil society at large for emerging historic disruptions.
On top of this, recent economic and geopolitical turbulence associated with growing social and environmental pressures just multiply the existing disruptions. For example, online banking is highlighted as a service that has increasingly led to the closure of bank branches, and bank tellers can expect to see a 40 per cent decline in the next five years.
Labour-market transformations have been driven by technological breakthroughs, sustainability and climate mitigation efforts, as well as green transitions and circular economy growth patterns.
Most recent World Economic Forum’s analysis evaluated in detail perspective global and regional trends based on data acquired in 2020.

WEF’s findings
During last five years several negative calamities affected the job market: e.g. the pandemic-induced lockdowns and related global recession in 2019- 2023, with highly uncertain outlook for the labour markets and future of work.
Thus, the WEF’s “Future of Jobs Report 2020” shed light on:
1) the pandemic-related disruptions thus far in 2020, contextualized within a longer history of economic cycles, and
2) the expected outlook for technology adoption, jobs and skills in the next five years.
Despite the currently high degree of uncertainty, the report uses a unique combination of qualitative and quantitative intelligence to expand the knowledge base about the future of jobs and skills.
The report “aggregates” views of business leaders, i.e. chief executives, chief strategy officers and chief human resources officers on the frontlines of decision-making regarding human capital with the latest data from public and private sources to create a clearer picture of both the current situation and the future outlook for jobs and skills.
The report also provides in-depth information for 15 industry sectors and 26 advanced and emerging countries.

Sustainability jobs on the rise
Global efforts to decarbonise industries, as the world tries to fight climate change, will see a marked increase in sustainability jobs in the near future, the report states. Thus, some 30 million jobs could be created in clean energy, efficiency and low-emissions technology by the end of the decade. But questions are raised about how all these new workers are going to get the skills they need.
Employers surveyed estimated that around 44 per cent of workers’ skills will be disrupted in the next five years, with cognitive skills like complex problem-solving seen as the most important.
Six out of 10 workers are going to need training before 2027 for this upskilling, but only half of workers are seen to have access to appropriate training opportunities right now.
One of the key skills many of the companies want to teach their employees is how to work with AI, which is expected to be adopted by nearly 75 per cent of the companies. Half of them expect AI to create job growth; however, about 25 per cent expected serious job losses.
Reference to:

Business at a cross-road: getting through modern challenges
As a rule, the entrepreneurship’s activity, together with the nation’s economy competitiveness in a great extent is being dependent on a country’s governance system and the internal approaches to the inherent connections between politics and economics.
In the latter, the politics represent a scientific discipline defining national essential priorities, while economics is a set of national socio-economic strategy’s implementation. Numerous articles in the global press include analysis of the modern state-of-art in contemporary European political economy at different times and in various EU member states.
Thus, for example, of interest are analyses of the present and future effects of contemporary challenges (such as, sustainability, digital and green transition in the EU’s political priorities) for perspective corporate activities.
The EU institutions provide recommendations to the member states’ decision-makers in “composing” a modern-type political economy patterns to be adequate to new facets in entrepreneurship.
On modern trends in business see: “Business in a New Century: Challenges and Outcomes. Political Economy & Entrepreneurship in Europe and the World” (E Eteris & D. Vasilevska). –Turiba University Publ. 2023. – 424 pp. ISBN 978-9934-543-39-5.

Corporate risk management
Modern challenges, risks and/or crises occupy an ever important place in national governance strategies. In the perspective trajectory, these challenges can for example slowly but persistently turn into critical situations (i.e. through numerous small and big crises) in global and national agendas, while ignoring associated risks could lead to deficiencies in governance and decision-making.
Thus, scientists, politicians and military strategists have been exploring outer space for decades; recently these activities included active additional private and public attention, which created both new opportunities and involving risks. That is a vivid example of a “supplementary” challenging effect on decision-making and a resulting risks; the example that is signaling that science, research and innovation is a constant process, while the implementation of results is in the hands of governance structures.
It means that any challenge –from an objective point – is a “substance” that appears either as a result of a previous evolution or scientific/innovative achievements; all other challenges are “subjective”, i.e. being the result of socio-economic and political development.

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