As I do every year, at the beginning of the year I turn my attention to the World Economic Forum’s forecasts at the beginning of the year to gain insight into labour market trends for 2025.
Last week, I was about to write a blog post about my disappointment at the lack of a publication. Lo and behold, I put the thought out into the universe and now the Future of Jobs Report 2025 has been published. Then again, perhaps it’s because the WEF Annual Meeting is currently taking place in Davos and the publication was planned in advance 😉
The Future of Jobs Report 2025 brings together the perspectives of over 1,000 leading global employers.
Over 14 million employees in 22 industry clusters and 55 economies worldwide were surveyed to examine the development of these macro trends (long-term trends with a 10-15 year outlook) in terms of jobs and skills. It also examines which strategies will lead to workforce transformation and how employers will respond to this between 2025 and 2030.
We live in uncertain times! What will have the greatest global impact on the labour market in the coming years?
The 5 biggest drivers influencing the labour market
Digitalisation
The trend likely to cause the most significant upheaval is the expansion of digital access. 60% of employers expect this trend to transform their company by 2030.
Economic development
The second biggest trend overall is the rising cost of living which is also the most important factor in terms of the economic situation. The general economic slowdown is also a significant issue. It is expected that 1.6 million jobs will be lost.
Climate change
Mitigating climate change is the third strongest overall trend – and the most important trend in relation to the green transition. This is driving demand for professionals such as renewable energy engineers, environmental engineers and specialists in electric and autonomous vehicle specialists.
Demographics
Two demographic developments are are having an increasingly significant impact on the the global economy and labour markets: an ageing population and a decline in the working-age population. Let’s take a look at Austria’s population forecasts:
Austria’s population is expected to grow and age significantly until 2080. According to Statistics Austria’s latest population forecast , the population will increase by 5.5% to 9.6 million by 2040. Growth will be particularly strong among those aged 65 and over, whose share is expected to rise from 19.7% to 26.7% in 2040. By 2080, the total population is expected to grow further, reaching 10.2 million, 29.3% of whom will be aged 65 or older. (Source: Statistics Austria)
Geo-economic fragmentation & geopolitical tensions
Geo-economic fragmentation (a politically motivated reversal of global economic integration) and geopolitical tensions are expected to lead to a transformation of the business model at one third (34%) of the companies surveyed over the next five years. In other words, many companies are considering whether to relocate their operations abroad or bring them back to their home country. It depends on the industry in which you operate.
The good news
An additional 14% of new jobs are expected to be created by 2030.
In absolute terms, frontline professions such as agricultural workers, delivery drivers, construction workers, salespeople and food workers are set to benefit the most.
The number of jobs in the care sector, including nursing, social work, counselling, and personal care, is also expected to increase significantly over the next five years. This is hardly surprising, given the above mentioned demographic trends.
It is also predicted that the number of jobs education, including university and secondary school teaching, will increase significantly.
In percentage terms, the fastest-growing professions are those related to technology, including big data specialists, fintech engineers, AI and machine learning specialists, and software and application developers.
The largest declines are expected in the area of office and secretarial roles. Here, AI will be able to take over some of the routine tasks.
What does this mean now?
Between 2025 and 2030, we can expect two-fifths of existing skills to change or become obsolete . For companies, this means placing an absolute focus on the further training and retraining of employees.
The following skills will be crucial in the labour market in the coming years:
- analytical thinking
- AI and big data, as well as networking and cyber security
- creative thinking, resilience, flexibility and agility
- leadership and social influence
- talent management
- taking responsibility for the environment
- as well as curiosity and lifelong learning.
My conclusion
Although analytical thinking has dropped to number 9 in the top 10 future skills, it is still considered one of the most important by companies. Networked thinking, particularly in relation to AI, will be crucial for success.
Unsurprisingly, technological skills will continue to grow in importance. Creativity will set people apart from AI. In the light of demographic developments, leadership and talent management will become even more important. Inspiring and retaining employees will present a significant challenge to companies. Taking social and environmental responsibility is essential if you want to present yourself well in the job market. It is necessary to implement sustainable economic programmes so that the next generation can also benefit.
Given changes ahead, it is important to manage stress well and set clear boundaries to protect your health. Remaining flexible and agile and retaining your curiosity are essential for keeping up to date. Lifelong learning will be our constant companion, and excuses will not be tolerated.
As Friedrich Schiller recognised: „Those who do not move with the times will be left behind.“