The World Economic Forum recently released its Future of Jobs report, which highlights that the Indian job market is estimated to witness 22% churn over the next five years. This article will analyze the report’s findings and their implications for the Indian job market.
Introduction
The Indian job market is set to witness significant churn in the next five years, with top emerging roles coming from AI, machine learning, and data segments, according to a new report released by the World Economic Forum. The report estimates the job market churn to be 22% over the next five years, with 69 million new jobs expected to be created and 83 million jobs eliminated by 2027 globally. This article examines the implications of the report’s findings for the Indian job market.
Green transition, ESG standards, and localization of supply chains are the leading drivers of job growth globally, while economic challenges such as high inflation, slower economic growth, and supply shortages pose the greatest threat, according to the report. Advancing technology adoption and increasing digitization will cause significant labor market churn, with an overall net positive in job creation.
The Indian Job Market in Numbers
According to the estimates of the 803 companies surveyed for the report, employers anticipate 69 million new jobs to be created and 83 million eliminated among the 673 million jobs corresponding to the dataset, a net decrease of 14 million jobs, or 2% of current employment.
In India, 61% of companies think broader applications of ESG (environment, social, and governance) standards will drive job growth, followed by increased adoption of new technologies (59%) and broadening digital access (55%). The top roles for industry transformation in India would be AI (artificial intelligence) and machine learning specialists, and data analysts and scientists.
India, China, the US, and Finland are featured at the top of the list for the oil and gas sector while manufacturing and oil and gas sectors have the highest level of green skill intensity globally. On the other hand, India figured among the seven countries where job growth was slower for social jobs than non-social jobs.
97% of Indian respondents said that the preferred source of funding for training was ‘funded by the organization’ as against the global average of 87%.
The Future of Jobs in India
The report highlights that advancing technology adoption and increasing digitization will cause significant labor market churn, with an overall net positive in job creation. Artificial intelligence, a key driver of potential algorithmic displacement, is expected to be adopted by nearly 75% of surveyed companies and is expected to lead to high churn – with 50% of organizations expecting it to create job growth and 25% anticipating it to result in job losses.
The fastest-growing roles are being driven by technology and digitalization. Big data ranks at the top among technologies seen to create jobs. The employment of data analysts and scientists, big data specialists, AI machine learning specialists, and cybersecurity professionals is expected to grow on average by 30% by 2027.
The report found that jobs in the education industry are expected to grow by about 10%, leading to 3 million additional jobs for vocational education teachers and university and higher education teachers. Jobs for agricultural professionals, especially agricultural equipment operators, graders, and sorters, are expected to see a 15-30% increase, leading to an additional 4 million jobs.
Globally, six in ten workers will require training before 2027, but only half of the employees are seen to have access to adequate training opportunities today. The report estimates that, on average, 44% of an individual worker’s skills will need to be updated.
Key Takeaways
1. Automation and Artificial Intelligence will Displace Workers
The report predicts that automation and artificial intelligence will displace around 10 crore workers in India, leading to a churn rate of 22% in the next five years. Automation and AI will have the most significant impact on the manufacturing, construction, and textile industries.
2. Future Jobs will Require New Skills
The report suggests that the future job market will require new skills such as analytical thinking, creativity, complex problem-solving, emotional intelligence, and technology use. The workforce will have to adapt to these new skills to remain competitive in the job market.
3. Reskilling and Upskilling is Critical
The report emphasizes that reskilling and upskilling are essential for the workforce to remain relevant in the job market. The government, private sector, and education institutions must collaborate to develop training programs to prepare the workforce for the future job market.
4. Gender Gap in the Job Market
The report highlights the gender gap in the Indian job market. The female workforce participation rate in India is lower than the global average, and women are underrepresented in leadership positions. The report suggests that bridging the gender gap is critical to ensuring inclusive economic growth.
5. Importance of Soft Skills
The report suggests that soft skills such as communication, teamwork, leadership, and creativity will become more critical in the future job market. Employers will seek candidates who possess these skills in addition to technical skills.
Conclusion
The World Economic Forum’s report on the future of jobs in India predicts significant changes in the Indian job market due to automation and AI. The report suggests that the future job market will require new skills and that reskilling and upskilling are critical for the workforce to remain competitive. Bridging the gender gap is also crucial to ensuring inclusive economic growth.
Source: NDTV
