Indian job market to see 22% churn in 5 yrs: World Economic Forum

New Delhi: The Indian job market is estimated 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, the job market churn is estimated at 23 per cent, with 69 million new jobs expected to be created and 83 million eliminated by 2027, the World Economic Forum said in its latest Future of Jobs report.

“Almost a quarter of jobs (23 per cent) are expected to change in the next five years through growth of 10.2 per cent and decline of 12.3 per cent (globally),” the WEF said. 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 per cent of current employment.

Regarding India, it said 61 per cent of companies think broader applications of ESG (environment, social and governance) standards will drive job growth, followed by increased adoption of new technologies (59 per cent) and broadening digital access (55 per cent). Top roles for industry transformation in India would be AI (artificial intelligence) and machine learning specialists, and data analysts and scientists, it added.

The report also found that manufacturing and oil and gas sectors have the highest level of green skill intensity globally, with India, the US and Finland featuring at the top of the list for the oil and gas sector.

Also, more populous economies such as India and China were more positive than the global average when compared with countries’ viewpoints on talent availability while hiring.

On the other hand, India figured among the seven countries where job growth was slower for social jobs than non-social jobs.

In India, 97 per cent of respondents said that the preferred source of funding for training was ‘funded by organisation’ as against the global average of 87 per cent.

The WEF said that macro trends, including the green transition, ESG standards and localisation of supply chains are the leading drivers of job growth globally, with economic challenges, including high inflation, slower economic growth and supply shortages, posing the greatest threat. Advancing technology adoption and increasing digitisation will cause significant labour market churn, with an overall net positive in job creation, it added. “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,” she added.

The survey covered 803 companies collectively employing more than 11.3 million workers in 27 industry clusters and 45 economies from all world regions. The WEF said technology continues to pose both challenges and opportunities to labour markets, but employers expect most technologies to contribute positively to job creation.