The job market in India would expectedly have a 22 percent churn over the next half a decade, with technology and digitization becoming the driving factor for job creation and elimination too, a new study by the World Economic Forum showed on Monday.
On the global front, the job market churn would reach 23 percent predicted, with 69 million expected new jobs and 83 million tossed out by 2027, highlighted the World Economic Forum in its latest Future of Jobs report.
“Almost a quarter of jobs (23 percent) are expected to change in the next five years through growth of 10.2 percent and decline of 12.3 percent (globally),” the WEF said.
The report analyzed the estimates of 803 companies surveyed. It found employers expect 69 million new job creations and 83 million job elimination among the 673 million jobs corresponding to the dataset. It corresponds to a net drop of 14 million jobs or 2 percent of current employment.
Scenario In India:
According to the World Economic Forum report, 61% of businesses believe that widening the application of ESG (environment, social, and governance) standards will increase employment growth in India. It is followed by increasing adoption of new technologies (59%) and increased internet access (55%), among other factors.
AI (artificial intelligence) and machine learning experts, as well as data analysts and scientists, would be the top positions for industry transformation in India.
Per the survey, the manufacturing and oil and gas industries have the greatest global levels of green skill intensity, with India, the US, and Finland placed at the pinnacle for the oil and gas industry.
Also, heavily populated countries like India and China were more optimistic about talent availability while hiring than the global average.
Noticeably, India was among the seven countries witnessing slower job growth for social jobs than non-social jobs.
In India, 97 percent of respondents said they would prefer their organizations to fund their skill training, while the global average was 87 percent.
Drivers of Job Growth & Potential Threats:
The WEF was concerned that macro trends, including the green transition, ESG standards, and localization of supply chains which will forefront job growth globally, will face economic headwinds such as high inflation, slower economic growth, and supply shortages.
“For people around the world, the past three years have been filled with upheaval and uncertainty for their lives and livelihoods, with COVID-19, geopolitical and economic shifts, and the rapid advancement of AI and other technologies now risks adding more uncertainty,” said Saadia Zahidi, Managing Director, World Economic Forum.
“The good news is that there is a clear way forward to ensure resilience. Governments and businesses must invest in supporting the shift to the jobs of the future through the education, reskilling, and social support structures that can ensure individuals are at the heart of the future of work,” she added.
The survey examined 803 companies with a total workforce of 11.3 million workers – in 27 industry clusters and 45 economies from around the globe.
The WEF said what can encumber the job market is technology, but at the same time, it will be a factor boosting job creation.
Fastest Growing & Declining Role:
All thanks to digitization and rapidly evolving technology, the data industry is the new fuel igniting employment creation. The demand for Data analysts and scientists, Big data specialists, AI machine learning specialists, and cybersecurity professionals will expectedly grow by 30 percent on average by 2027.
At the same time, technology and digitization are the reason behind people losing their jobs. People with clerical or secretarial roles, including bank tellers, cashiers, and data entry clerks, can expect a dip.
Gainers & Losers:
Nearly 75% of surveyed companies anticipate adopting artificial intelligence, which is a major factor in potential algorithmic displacement and is predicted to cause high churn, with 50% of organizations anticipating job growth and 25% anticipating job losses.
However, agriculture and education will create the most new jobs in absolute terms. According to the report, education sector-related posts will increase by 10%, creating 3 million more jobs for university and higher education professors as well as teachers of vocational education.
There will be an additional 4 million employment for agricultural professionals, particularly machine operators, graders, and sorters, which is a 15–30% rise.