Indian job market: The survey covered 803 companies across world regions (Representational)
New Delhi:
The Indian job market is expected to witness 22 per cent churn over the next five years, with top emerging roles coming from AI, machine learning and data segments, a new study showed on Monday.
Globally, job market churn is estimated at 23 per cent, with 69 million new jobs expected to be created and 83 million eliminated, says the World Economic Forum in its latest Future of Jobs report.
“Nearly a quarter of jobs (23 per cent) are expected to change over the next five years through 10.2 per cent growth and 12.3 per cent through decline (globally),” the WEF said.
According to estimates from 803 companies surveyed for the report, employers anticipate the creation of 69 million new jobs and the elimination of 83 million of the 673 million jobs corresponding to the dataset, a net reduction of 14 million jobs, or an increase from the current 2 percent employment.
Regarding India, it said that 61 per cent of companies think that wider application of ESG (Environmental, Social and Governance) standards will lead to job growth, followed by increased adoption of new technologies (59 per cent) and digital access (59 per cent). 55 percent) will be made comprehensive.
It added that the top roles for industry transformation in India would be AI (artificial intelligence) and machine learning experts, and data analysts and scientists.
The report also found that the manufacturing and oil and gas sectors have the highest levels of green skills intensity globally, with India, the US and Finland topping the list in the oil and gas sector.
In addition, populous economies such as India and China were more positive than the global average in countries’ outlook on talent availability when recruiting.
On the other hand, India is among the seven countries where employment growth was slower for social jobs than for non-social jobs.
In India, 97 per cent of respondents said the preferred source of funding for training was ‘organization funded’ as against a global average of 87 per cent.
WEF said broader trends including green transition, ESG standards and localization of supply chains are key drivers of job growth globally, with economic challenges including high inflation, slowing economic growth and supply shortages posing the biggest threats.
It added that driving technology adoption and increasing digitization will lead to significant labor market churn with overall positive upside in job creation.
“For people around the world, the past three years have been filled with turmoil and uncertainty for their lives and livelihoods, with COVID-19, geopolitical and economic shifts, and the rapid advancement of AI and other technologies now risks adding more uncertainty,” said Sadia Zahidi, managing director of the World Economic Forum.
“The good news is that there is a clear way forward to ensure resilience. Governments and businesses must invest in supporting the transition to the jobs of the future through education, reskilling and social support structures that can ensure that Individuals are at the center. The future of work,” he added.
The survey covered 803 companies – collectively employing more than 11.3 million workers – in 27 industry groups and 45 economies from all world regions.
The WEF said technology continues to pose both challenges and opportunities for labor markets, but employers expect most technologies to contribute positively to job creation.
The fastest growing roles are being driven by technology and digitization. Big Data is at the top of job-creating technologies. Employment of data analysts and scientists, big data specialists, AI machine learning specialists, and cyber security professionals is expected to grow by an average of 30 percent through 2027.
At the same time, the most rapidly declining roles are also being driven by technology and digitization, with clerical or secretarial roles, including bank tellers, cashiers and data entry clerks, expected to decline most rapidly.
Also, while the displacement of manual and physical work by machines has waned, reasoning, communication and coordination – all qualities that humans have a comparative advantage with – are expected to become more automated in the future.
Artificial intelligence, a key driver of potential algorithmic displacement, is expected to be adopted by nearly 75 percent of companies surveyed and is expected to lead to higher churn — 50 percent of organizations expect it to lead to job growth and 25 percent expect This results in loss of job.
However, the largest absolute gains in jobs will come from education and agriculture. The report found that jobs in the education industry are expected to increase by about 10 percent, creating an additional 3 million jobs for vocational education teachers and university and higher education teachers.
Jobs for agriculture professionals, especially farm equipment operators, graders and sorters, are expected to see a growth of 15-30 per cent, adding up to an additional 40 lakh jobs.
Globally, six out of 10 workers will need training before 2027, but only half of workers today have adequate training opportunities.
At the same time, the report estimates that, on average, 44 percent of an individual worker’s skills will need to be updated.
In response to the cost-of-living crisis, 36 per cent of companies believe that offering higher salaries can help them attract talent. Nevertheless, companies are planning to combine both investment and displacement to make their workforce more productive and cost-effective.
Four out of five companies surveyed plan to invest in learning and on-the-job training as well as automating processes over the next five years.