Future of Jobs Report 2025

• 11 Jan 2025

For Prelims: World Economic Forum (WEF), Future of Jobs Report, Green Transition, AI, Renewable Energy, Low-Income Economies, Stakeholder Capitalism, Global Competitiveness Index, Global Gender Gap Index, Energy Transition Index, Global Risk Report, Global Travel and Tourism Competitiveness Index, GenAI, Semiconductors, Quantum, Encryption.  

For Mains: Impact of technological advancements on global labor markets.

Source: HT 

Why in News? 

The World Economic Forum (WEF) released its 'Future of Jobs Report 2025,' highlighting key findings and changes expected to shape the global job market by 2030. 

• The report, based on inputs from 55 economies, projected a net increase of 78 million jobs by 2030 and highlighted how technology, economic shifts, and the green transition impact jobs and skills.  

What Are the Key Findings of the WEF Report? 

• Fastest-Growing Roles: The fastest-growing roles include frontline jobs (farmworkers, delivery), care economy positions, tech roles, and green transition jobs. 

 

• Declining Roles: The report finds that clerical roles such as cashiers, data entry clerks, and bank tellers are expected to decline significantly.  

 

• Job Displacement and Creation: Automation, investments in renewable energy and aging populations displaces jobs but creates new tech and machine management roles. 
  • Slower economic growth is expected to displace 1.6 million jobs globally. 
• Technological Advancements: Broadening digital access is the most transformative trend, with 60% of employers expecting it to reshape businesses by 2030. 
  • Key technologies in demand for high skills include Artificial intelligence (AI) and information processing (86%), robotics and automation (58%), and energy technologies (41%). 
• Green Transition: Climate-change mitigation and adaptation trends are driving demand for roles such as renewable energy engineers, environmental engineers, and specialists in electric and autonomous vehicles. 
• Demographic Shift: Aging populations and shrinking workforces impact labor supply. 
  • Aging in high-income economies drives demand for healthcare, while growing workforces in low-income economies boost demand for educators and talent managers. 
• Geoeconomic Fragmentation: Geopolitical tensions and trade restrictions are prompting business model transformations in 34% of organizations. 
  • Businesses are more likely to offshore and reshore their operations. 
  • Geopolitical tensions are boosting demand for security roles and cybersecurity skills. 
• India Related Findings: India is leading in AI skills enrollments with corporate sponsorship significantly boosting GenAI training. 
  • Employers in India aim to outpace global tech adoption, with 35% expecting semiconductors and computing technologies, and 21% anticipating quantum and encryption to transform operations. 
  • India and Sub-Saharan African nations, will supply nearly two-thirds of new workforce entrants in the coming years. 

World Economic Forum (WEF) 

• About: WEF is an international organization for public-private cooperation, headquartered in Geneva, Switzerland.  
  • It engages global leaders to shape agendas across industries, regions, and globally. 
• Foundation: Founded by Klaus Schwab in 1971 as the European Management Forum, WEF introduced "stakeholder capitalism," which emphasizes long-term value for all stakeholders, not just short-term profits for shareholders. 
• Evolution: In 1973, the WEF expanded its focus to economic and social issues. It introduced membership for the world’s leading 1,000 companies in 1975.  
  • In 1987, it became the World Economic Forum, broadening its role as a platform for dialogue. It was recognized as an international organization in 2015. 
• Major Reports: WEF publishes key reports, including the Global Competitiveness Index, Global Gender Gap Index, Energy Transition Index, Global Risk Report, and Global Travel and Tourism Competitiveness Index. 

What are the Challenges to Employment in India due to Emerging Technologies? 

• Job Displacement: According to the International Labour Organization (ILO), sectors like manufacturing and services are experiencing automation of repetitive tasks, leading to potential job displacement. 
• Skill Mismatch: There's a growing need for expertise in AI, cybersecurity, and data science. However, a significant portion of the workforce lacks these specialized skills, leading to a mismatch between job requirements and available talent. 
• Uneven Technology Adoption: Urban areas are rapidly adopting new technologies, while rural regions lag behind, leading to disparities in employment opportunities and economic growth. 
• Informal Sector Challenges: Workers in the informal sector, which constitutes a significant part of India's economy, may find it hard to transition to technology-driven jobs due to lack of access to training and education.   

Way Forward 

• Upskilling: Governments, businesses, and educational institutions should collaborate to create specialized upskilling programs tailored to emerging sectors. 
  • Employers should create career progression pathways to help employees transition from declining to growing roles. 
• Diversity, Equity, and Inclusion (DEI): Companies should invest in diversity recruitment programs, aiming to tap into underrepresented communities and regions, thus enhancing the talent pool. 
• AI Adoption for Workforce: Embrace a mix of human creativity and AI efficiency where humans and machines can collaborate rather than compete, improving productivity without sacrificing employment.  
• Retaining Talent: Conduct regular pay reviews, ensure compensation transparency, and offer incentives like stock options, bonuses, and benefits to boost retention and skill development. 
• Public Policy Support: Governments should fund reskilling and upskilling initiatives, especially for industries impacted by technology, and offer retraining, financial support, and job placement for displaced workers.

Conclusion

The WEF’s 'Future of Jobs Report 2025' underscores the need for upskilling, adapting to technological shifts, and prioritizing diversity in the workforce. Governments and businesses must collaborate to create resilient labor markets by investing in skills, AI, and inclusive growth strategies to meet future job demands. 

Drishti Mains Question: 

Discuss the impact of technological advancements and economic conditions on global labor markets by 2030.

UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Prelims 

Q. The Global Competitiveness Report is published by the (2019) 

(a) International Monetary Fund 

(b) United Nations Conference on Trade and Development 

(c) World Economic Forum 

(d) World Bank 

Ans: (c)

Q. Which of the following gives ‘Global Gender Gap Index’ ranking to the countries of the world? (2017)

(a) World Economic Forum 

(b) UN Human Rights Council 

(c) UN Women 

(d) World Health Organization 

Ans: (a)

---

Mains 

Q. What are the salient features of ‘inclusive growth’? Has India been experiencing such a growth process? Analyse and suggest measures for inclusive growth. (2017)