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Workplace trends that will transform the labour market in 2024
Editorial by Christian Saint Cyr
National Director / Canadian Job Development Network
By the year 2027, just three years from now, it's predicted almost half (44%) of workers’ core skills will be disrupted. We are in the midst of a skills revolution and not only are the skills employers are looking for changing; so are the skills we use every day in our work.
This trend is explored in the 'Future of Jobs Report' recently released by the World Economic Forum.
Artificial Intelligence (AI) is widely reported to be a key disrupter, but other factors, including the green transition and geo-economic conditions, will also see "churn" for almost a quarter of jobs by 2027 – a measure of disruption that includes both emerging and declining jobs. In other words, we can expect nearly one in four workers to change jobs in the next three years.
In the report, the Forum identifies six trends that are expected to have a major impact on the labour market, both in Canada and around the world, in the year 2024.
1. Generative AI boosts productivity, unevenly
Similar to the wide adoption of the internet the late 1990s and early 2000s, artificial intelligence is expected to transform a multitude of organizations and yet this transition is expected to more positively impact developed countries. Almost three-quarters (73%) of chief economists surveyed "do not foresee a net positive impact on employment in low-income economies".
Workers’ ability to work with AI will be a key factor in determining future employment. According to one commentator, “it’s not as though AI will replace you but it’s possible someone who is better at working with AI will.”
2. Digital jobs keep growing
By 2030, the number of global digital jobs is expected to rise to around 92 million. These are generally higher-paid roles, according to the Forum's white paper, ‘The Rise of Digital Jobs’.
Employment transformation involves two-sides of the same coin. On one side, as we bring in more technology and automation, we’re creating new higher skilled jobs. But to grow the economy and increase profitability, we will simultaneously eliminate many more low-skilled, low-paid jobs. Over the next three years, it will be essential to better prepare entry-level job seekers for more skilled employment outcomes.
3. Unemployment levels could rise
Unemployment in much of the developed world is at levels not seen before and yet, unemployment is forecast to increase this year. Data released by the International Labour Organization in January suggests the global unemployment rate could rise from 5.1% to 5.2% in 2024, with an extra two million workers expected to be looking for jobs.
Whether our economy dips into recession or not, we are in a precarious employment climate where employers are reluctant to proceed with unnecessary hiring. Job seekers will need to be better prepared on how to articulate their value to employers.
4. Growth in non-traditional employment opportunities
LinkedIn has seen a drop in the number of fully remote job postings, from a peak of 20% in April 2022, to just 8% in December 2023. This speaks to an economy where employers are able to require more workers to be in-house, given greater competition for available jobs.
Nevertheless, employee interest in taking remote or hybrid jobs remains high, at around 46% of applications. We can expect for flexible work arrangements in the year to come where workers with the more comprehensive skill set are accommodated. We can expect more traditional workplaces to down-size and jobs requiring straightforward tasks to be continually automated.
5. Skills will become even more important
We’ve been saying workers should expect to work with multiple employers and possibly in multiple occupations throughout their career, but this trend is growing as employers look to just acquire the skills that are necessary rather than an employee with a particular grouping of education, skills and experience.
With 23% of workers expected to change jobs in the next five years, millions of people will need to move between declining and growing jobs. The next three years will be a period of rapid transition and workers who are more adaptable will enjoy greater success.
6. More women entering the workforce
In 2020, the World Bank found potential gains from closing economic gender gaps could unlock a “gender dividend” of $172 trillion for the global economy.
Reshma Saujani, Founder and CEO of Moms First said, “there are 606 million women of working age in the world who are not working because of their unpaid care responsibilities, compared to 40 million men."
In terms of salary, benefits, opportunities for advancement and multiple other factors, women are under-represented in the Canadian labour market and the data suggests in the coming years we will see more proactive recruitment and retention policies that will begin to correct this imbalance.
In reviewing this report, we come to see that many of the challenges we face in Canada are mirrored throughout the world.
As a nation, Canada will need to be more proactive and responsive to this rapidly changing employment environment to ensure we maintain low-unemployment, a healthy economy and a favorable trade balance with other nations.
Similarly, the local employers we work with every day will need to be open to modifying who and how they recruit; the steps they take to build a committed workforce; and how they shape their enterprise to be successful in this changing world. There will be employers who resist these changes and there will be financial and organizational challenges they will face as a result. Employers who embrace the transition will not only enjoy a more successful enterprise, they will also be better situated to flourish in this new economic and technological reality.
We’ll be discussing these transformative trends at our #MotivatingMondays meeting of the Canadian Job Development Network, Tuesday February 20th at 8:30am Pacific; 9:30am Mountain; 10:30am Central; 11:30am Eastern; 12:30pm Atlantic and at 1pm in Newfoundland. Visit: www.MotivatingMondays.ca to join the session LIVE.
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