5 trends shaping the world of work -and how ministers and CEOs are addressing them

This article is a summary of: World Economic Forum Annual Meeting

Global labour markets are on divergent paths

• Low and middle-income countries have a growing working-age population amidst high unemployment
• While advanced economies confront an ageing population, decreased labour force participation and tight labour markets
• Continued technological advancements, the green transition and the restructuring of value chains are all set to create vast opportunities for countries to grow and businesses to thrive. But, they will also lead to increased job churn; significant growth and opportunity in some roles and sectors, at the same time as decline and disruption in others.
• How can governments proactively tap into the opportunities for new and better jobs and minimize the downsides?

Job shortages in low and middle-income countries

• Global employment has still not reached pre-COVID-19 levels
• At the same time, the world's working-age population is increasing significantly
• The UN is aiming to create 400 million jobs including in the care, digital and green economies

Labour shortages in high-income countries

• In the United States, there were over 10 million unfilled job openings as of November 2022, equivalent to 1.74 job openings for every unemployed person.
• Around 1.4 million people have left their jobs in the manufacturing industry since the start of the pandemic

Job churn is rising globally

• The green transition, increasing technological adoption and geoeconomic shifts are transforming labour markets worldwide, increasing job churn globally.
• Additionally, wages are a growing concern for workers as COVID-19 put downward pressure on real wages for many workers around the world.

Quality of work is an issue

• Issues around the quality of work have come to the fore
• Job quality is also affecting employee retention
• 60% of respondents to a McKinsey survey expressed a desire to leave their jobs
• Around the world, employees are renegotiating their relationship with work

Introducing the Jobs Consortium

• The World Economic Forum's Jobs Consortium is a coalition of CEOs, government ministers, and other leaders with a common vision for a better future of work for all.
• They promote alignment and action on three key areas
• Boost foresight on labour market trends to prepare for the future
• Identify investments in key sectors leading to good job creation
• Support high job quality, fair wages and dynamic job transitions
• UNI Global Union is tackling unfair wages and poor working conditions by ensuring the minimum wage is a living wage and putting in place mechanisms to guarantee the rights of workers