If there is one report that I believe business leaders, politicians and policy-makers need to engage with to understand how key changes are going to affect the economy, then it’s the Future of Jobs Report 2025 from the World Economic Forum.
Drawing on insights from more than 1,000 global employers representing more than 14 million workers, it identifies a series of powerful forces shaping the global labour market, from generative AI to demographic shifts, the green transition, economic uncertainty and increasing geopolitical fragmentation.
While we constantly worry about the way new technologies such as AI are going to destroy jobs over the next few years, perhaps the most striking finding is the forecast that 170 million new jobs will be created by 2030, while 92 million jobs will be displaced.
Initially, this net effect of 78 million jobs is great news, but it’s not necessarily the numbers that are important but how sectoral churn will demand specific skills transformation in the workplace.
According to the report, technology-related roles will grow fastest, led by demand for big data specialists, fintech engineers, AI and machine learning experts, and software developers.
Green jobs also feature strongly, particularly roles linked to renewable energy, environmental engineering and electric vehicles.
These roles are not just growing in relative terms but also represent how economies will generate value and respond to societal challenges.
In contrast, the occupations that will be hit hardest will be clerical and secretarial jobs, including data-entry clerks, administrative assistants and bank tellers.
This is not surprising, as these are roles increasingly being automated or augmented by artificial intelligence and digital technologies.
Yet there is also evidence that automation will not immediately change the world of work.
By 2030, it is expected that only a third of workplace tasks will be performed entirely by humans, with another third handled by machines and the remaining third shared collaboratively between the two.
This growing collaboration between human workers and technology is where the greatest opportunity lies and will require businesses to focus not just on replacing tasks, but on designing jobs and systems that enhance the capabilities of their workforce.
While changes in technology are important, there are also key demographic shifts that will affect different economies across the globe.
For example, shrinking and ageing populations are creating demand for healthcare roles in higher-income countries, while in lower-income economies the challenge will be to create enough meaningful employment for a fast-growing youth population.
As we have all seen, another key trend is the growing economic pressure driven by the cost of living and inflation.
Despite signs that global inflation is easing, half of all employers say that rising costs will be one of the most transformative factors shaping their business by 2030.
This is not just about pricing and wages but reflects deeper concerns about consumer demand, labour supply, and long-term competitiveness.
Similarly, climate change is no longer just an environmental issue but is a major economic driver, with nearly half of employers expecting efforts to reduce carbon emissions to fundamentally reshape their business models, which is helping to fuel the demand for green skills and sustainable job roles.
But perhaps the most important finding, especially in developing clear strategies for growth, is that nearly 40% of workers’ current skillsets are expected to become outdated by 2030.
Analytical thinking remains the most in-demand skill, followed by resilience, flexibility, leadership and technological literacy, while softer skills such as curiosity, lifelong learning and creative thinking are also rising in importance, indicating a growing recognition that adaptability – not just technical ability – will define success in the future workplace.
The good news is that businesses are beginning to respond to these challenges. Eighty-five per cent of employers plan to prioritise upskilling their workforce over the next five years, and 70% expect to recruit staff with new skills.
Such changes also mean that 40% of employers plan to reduce staff whose skills no longer align with business needs.
And while 59% of global workers are projected to need training by 2030, 11% are unlikely to receive it, highlighting the risk of a growing group left behind by workplace transformation.
With businesses all vying to attract the best people to work for them, there are a range of different measures being implemented to give firms a competitive advantage in this area.
For example, supporting employee wellbeing is now considered the top strategy for improving talent availability, followed closely by internal mobility and career progression. Interestingly (and despite the influence of the new administration in Washington) more employers are now identifying diverse talent pools as a critical workforce strategy than did just two years ago.
Therefore, while the challenges of AI, demographic shifts and climate change are significant, the report shows there are also enormous opportunities to reshape the future of work in ways that are more inclusive, sustainable and productive.
With many universities now facing an existential challenge because of failed business models, responding to the skills needs of businesses in both formal and informal training could revitalise the higher education sector.
For businesses themselves, the changes being driven by key trends are already transforming the economy. Those who invest in people, redesign roles, embed new technologies and embrace a broader view of talent will be in pole position to succeed in this brave new world.
