Significant changes will shake the global labor market over the next five years as economic growth deteriorates and businesses accelerate the use of new technology like artificial intelligence, according to recent research by World Economic Forum (WEF).
The conclusion is drawn from the WEF’s most recent research, the Future of Jobs research, based on surveys of more than 800 companies.
According to CNN, this will result in a net loss of 14 million jobs or 2% of the current labor force.
Employers anticipate creating 69 million new jobs and eliminating 83 million positions by 2027, according to the WEF, which organizes an annual meeting of world leaders in Davos, Switzerland.
During that time, a variety of factors will fuel labor market turbulence. By switching to renewable energy sources, many jobs will be generated, whereas inadequate economic growth and high inflation would result in losses.
Meanwhile, the rush to implement artificial intelligence will have both positive and negative effects. To manage and utilize AI tools, companies will need new employees. Data scientists, analysts, artificial intelligence experts, and cybersecurity specialists should see an average 30% growth in employment by 2027.
At the same time, as machines increasingly take the place of people in some situations, the spread of artificial intelligence will jeopardize many jobs. By 2027, the WEF estimated there might be 26 million fewer employees in administration and record-keeping. Data entry workers and executive secretaries are expected to see the most revenue losses.
Automation has just recently started to gain traction, despite the recent excitement surrounding products like ChatGPT. According to the WEF, 34% of all business-related tasks are currently being completed by machines. That only slightly exceeds the 2020 figure.
Future adoption expectations have also been reduced downward. Employers predicted that by 2025, 47% of tasks would be automated. By 2027, they now project that percentage to be 42%.
Companies are currently reevaluating the abilities that their employees require. According to WEF, businesses now value the ability to use AI tools more than computer programming effectively.