Pakistan Can Expect Massive Job Cuts in Next 5 Years: WEF

The World Economic Forum (WEF) has released a report on trends and technologies that may affect the global job market, including Pakistan, and predicts that artificial intelligence (AI) and big data will be critical for companies’ skill strategies across the globe.

The World Economic Forum in its Future of Jobs Report 2023 predicted that 83 million jobs will be eliminated in the next 5 years across the world, stating that some jobs such as bank tellers, data entry clerks, and accountants, may become obsolete.

Released on Monday, The Future of Jobs report is a comprehensive analysis of the changing landcape of employment, focusing on emerging trends, technologies, and skills required for the workforce in the coming years.

Global

The Report predicts that 23 percent of jobs are expected to change by 2027, with 69 million new jobs created and 83 million eliminated, and the green transition and localization of supply chains will lead to net job growth. The report further estimates that cognitive skills such as analytical and creative thinking will be the most important for workers in 2023 and the next five years, and companies’ skills strategies will focus on AI and big data specifically.

The report suggests that while reskilling and upskilling towards green skills is growing, it is not keeping pace with climate targets.

Pakistan

The report gives a comprehensive evaluation of Pakistan’s and other countries’ performance and data related to the Future of Jobs in 2023 and how the job market will unfold in the next 5-7 years.

Pakistan has the most negative outlook in the world, with lower skill stability than the global average. The Republic of Korea and Switzerland consider the completion of short courses and online certificates at a rate of less than 5 percent, compared to more than twice the global average of 19 percent in Pakistan (41 percent) and Finland (40 percent). The fraction of employers who consider micro-credentials may indeed be expected to increase, given that 82% of companies plan to adopt education and workforce development technologies in the next five years.

45 percent of respondents have a positive outlook for talent development in the next five years. This is in line with the finding that Pakistan has a lower skills stability, 44 percent, compared with the global average of 56 percent, read the report.

Almost half of the companies believe that deploying education and workforce development technologies will have a knock-on effect to create jobs – optimism which rises to 70 percent in geographies such as Egypt and Pakistan.

The working-age population in Pakistan is a notable 85.78 million, which signifies a vast pool of potential talent. The country’s labor force participation rate stand at 57 percent, with 55 percent of the workforce in vulnerable employment. However, the unemployment rate remains relatively low at 5 percent.

The report identifies several global trends and technologies that impact Pakistan’s job market, such as digital platforms and apps, big-data analytics, and education and workforce development technologies. These trends and technologies play a crucial role in driving industry transformation and creating new employment opportunities.

“For people around the world, the past three years have been filled with upheaval 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 Saadia Zahidi, Managing Director, 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 shift to the jobs of the future through the education, reskilling, and social support structures that can ensure individuals are at the heart of the future of work”.

Mishal Pakistan, the Country Partner Institute of the Center for New Economy and Societies Platform, World Economic Forum, also announced plans to develop a comprehensive report on the Future of Jobs for Pakistan in the third quarter of 2023.

Amir Jahangir, Chief Executive Officer of Mishal Pakistan said, “Pakistan has immense potential to contribute to the global workforce. By focusing on strengthening our education system, investing in vocational and technical training, and nurturing a culture of innovation, we can better equip our population to excel in the global job market, he added.

Source: Pro Pakistani

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