We’re constantly bombarded with narratives around the skills we need to thrive in the future job market. However, the recently published Future of Jobs Survey from the World Economic Forum (WEF) might just change the way we think about the skills needed to succeed in the ever-changing labor market. Let’s dive into some of the most compelling findings and what they mean for the future of work.
The Dominant Narrative: AI and Automation Will Replace Most Jobs
The WEF survey found that the displacement of physical and manual work by machines has actually decreased, contrary to popular belief. In fact, 34% of all business-related tasks are performed by machines, with the remaining 66% performed by humans. Interestingly, this represents only a 1% increase in automation since the 2020 edition of the Future of Jobs Survey.
What this means for the future of work is that humans still hold a significant advantage in certain areas. Specifically, reasoning, communicating, and coordinating are expected to be more automatable in the future, with AI being a key driver of potential algorithmic displacement.
The Overlooked Skill: Analytical Thinking
Analytical thinking is a core skill that’s often overlooked in the discussion of future job requirements. The WEF survey found that analytical thinking is considered a core skill by more companies than any other skill and constitutes, on average, 9% of the core skills reported by companies.
In addition, creative thinking, another cognitive skill, ranks second in importance, ahead of three self-efficacy skills – resilience, flexibility, and agility; motivation and self-awareness; and curiosity and lifelong learning.
The Skills Mismatch: What Companies Report vs. What They Prioritize
The WEF survey found that the skills companies report as increasing in importance the fastest are not always reflected in their upskilling strategies. AI and big data, as well as leadership and social influence, are ranked much higher in corporate upskilling strategies than in their evaluation of core skills.
This suggests a disconnect between what companies recognize as important skills and what they prioritize in their workforce development efforts. It’s crucial for organizations to align their upskilling strategies with the skills that are genuinely growing in importance to ensure their workforce remains competitive and adaptable.
The Surprising Barriers to Industry Transformation
According to the WEF survey, companies identify skills gaps and an inability to attract talent as the key barriers preventing industry transformation. This highlights the importance of investing in effective reskilling and upskilling programs to bridge these gaps and ensure a steady pipeline of talent for organizations.
Interestingly, the survey found that companies are more likely to invest in internal training solutions rather than external ones to close skills gaps. This suggests a growing trend of organizations taking more responsibility for their workforce development and prioritizing company-led initiatives.
The Importance of Diversity, Equity, and Inclusion (DEI)
The WEF survey also found that a majority of companies will prioritize women (79%), youth under 25 (68%), and those with disabilities (51%) as part of their DEI programs. This demonstrates a growing awareness of the importance of fostering diverse and inclusive workplaces to drive innovation and remain competitive in the global market.
In conclusion, the landscape of the labor market is undergoing significant changes due to technological advancements, economic trends, and environmental factors. The future of work calls for businesses to embrace innovative strategies, focusing on upskilling their workforce and prioritizing diversity and inclusion programs. Companies must recognize the increasing importance of cognitive and self-efficacy skills to adapt to the evolving workplace.
However, it is crucial to identify the gaps between the fastest-growing skills and the actual upskilling strategies that businesses are implementing. This could lead to a mismatch between the needs of the labor market and the preparedness of the workforce, further exacerbating the talent availability crisis. To address this issue, businesses must align their reskilling efforts with the actual demands of the industry, ensuring that the workforce is equipped to tackle the challenges of the future.
Governments also play a vital role in connecting talent to employment opportunities through funding for skills training, flexibility on hiring and firing practices, and offering incentives for companies to improve wages. Collaboration between businesses, governments, and educational institutions is necessary to develop a robust talent pipeline that caters to the evolving needs of the labor market.
Ultimately, the future of work hinges on our ability to adapt to the changing landscape and prepare the workforce for the jobs of tomorrow. By prioritizing skills training, fostering diversity and inclusion, and bridging the gap between upskilling strategies and industry demands, we can create a more resilient and dynamic labor market that thrives in the face of disruption.