World Economic Forum Gauges the Impact of Artificial Intelligence on Job Market
A recent study by the World Economic Forum (WEF) predicts that the Indian job market will experience a growth of 22% over the next five years. The WEF’s Future of Jobs report gauged the impact of artificial intelligence (AI) on the global job market and what it means for the future. The survey covered 803 companies across 45 economies from all around the world, collectively employing more than 11.3 million workers.
The report estimates that the world will see an influx of 69 million new jobs by 2027. Meanwhile, it predicts that about 83 million jobs will get eliminated by the same time. The report also found that in the next five years, almost a quarter (23%) of jobs in the world would change. This is based on the prediction of a 10.2% growth and a 12.3% decline in jobs globally.
Macro Trends Driving Job Growth Globally
According to the report, macro trends such as the green transition, ESG standards, and localization of supply chains would drive global job growth. However, economic challenges, including high inflation, slower economic growth, and supply shortages, pose the greatest threat.
Artificial Intelligence and Job Creation
The WEF report states that nearly 75% of surveyed companies would adopt artificial intelligence (AI), leading to a high churn. 50% of organizations expect AI to create job growth, while 25% anticipate it to result in job losses.
The AI adoption rate is significant and is expected to cause significant labor market churn. However, the overall net impact of AI adoption on job creation is expected to be positive.
India’s Job Market: Focus on ESG Standards and New Technologies
About India, the report estimated that a majority (61%) of companies think broader applications of the ESG (environment, social, and governance) sector will drive job growth. The increased adoption of new technologies (59%) and broadening of digital access (55%) are the other two prominent factors for the same. The findings indicate that India’s focus on ESG standards and new technologies would drive job growth in the country significantly.
Manufacturing and Oil & Gas Sectors: High Green Skill Intensity
According to the WEF report, the highest level of green skill intensity is in the manufacturing and oil and gas sectors globally. Moreover, India, the US, and Finland feature right on top of the list for the oil and gas sector.
Talent Availability in India
When it came to countries’ viewpoints on talent availability while hiring, the report showed that more populous economies such as India and China were more positive than the global average. However, India featured among the 7 countries where social job growth was slower than non-social jobs.
Education and Agriculture: Largest Absolute Gains in Jobs
In terms of industry-wise job growth, the largest absolute gains in jobs will come from education and agriculture. As per the report, jobs in the education industry would grow by about 10%, leading to 3 million additional jobs for vocational education teachers and university and higher education teachers.
Training Opportunities for Workers
Although only about three in 10 workers have access to adequate training opportunities today, we would need twice as many trained employees by 2027. Therefore, providing adequate training opportunities for the workforce will be critical to ensure that they remain relevant and employable in the rapidly changing job market.
The World Economic Forum’s Future of Jobs report indicates that AI adoption coupled with macro trends such as the green transition, ESG standards, and localization of supply chains will cause significant labor market churn, posing both opportunities and challenges for job creation in the coming years. While the overall net impact of these changes on job creation is expected to be positive, adequate training opportunities for the workforce will be essential to ensure that they remain employable and adaptable to the changing job market.