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14 million jobs to be lost worldwide by 2027 due to AI and ESG standards: WEF

14 million jobs to be lost worldwide by 2027 due to AI and ESG standards: WEF

Written by Katabella Roberts via The Epoch Times (emphasis ours),

The World Economic Forum (WEF) has warned The workplace landscape will change dramatically over the next five years amid the increasingly widespread use of artificial intelligence (AI), the transition to green energy, environmental, social and governance (ESG) standards and a slower economic growth.

A cameraman works in front of a World Economic Forum logo in Davos, eastern Switzerland, on January 20, 2019. (Fabrice Coffrini/AFP via Getty Images)

According to the WEF’s “Future of Jobs Report 2023”, about 23 percent of jobs are expected to change by 2027, with around 69 million new jobs to be created and 83 million eliminated, which will mean a decrease of 14 million jobs, or 2 percent. of current employment.

The report (pdf) surveyed 803 companies that collectively employ more than 11.3 million workers in 27 industry clusters and 45 economies around the world on macro and technology trends and their impact on jobs and skills, as well as the “workforce transformation strategies” that companies plan to implement between now and 2027.

He found that Clerical or clerical positions, including bank tellers, cashiers and cashiers, data entry clerks, postal service clerks, and administrative and executive secretaries will likely see the fastest decline in duties during the next five years. from its current size, with approximately 26 million fewer jobs by 2027.

Meanwhile, certain technology jobs, including those focused on AI and machine learning, sustainability specialists, business intelligence analysts, information security specialists and fintech engineers, are expected to see increased employment.

Overall, the largest job growth will likely be in the fields of education (up 10 percent, resulting in 3 million additional jobs), agriculture (up 30 percent, or 3 million of additional jobs) and digital trade and commerce (4 million additional jobs). , according to the report.

In this illustration taken on February 23, 2023, a smartphone with the ChatGPT logo is placed on the motherboard of a computer. (Dado Ruvic/Reuters)

Renewable energies, ESG driving labor changes

The WEF cites trends such as the transition to renewable energy, ESG standards, which are used by companies in the investment decision-making process to measure sustainable and ethical impacts, advancing technology adoption and the location of supply chains as the “primary drivers of employment”. growth,” while economic challenges such as continued high inflation, slower economic growth and supply shortages pose “the biggest threat” to job creation.

“The largest job creation and destruction effects come from environmental, technological and economic trends. Among the macro trends listed, companies predict that the strongest net job creation effect will be driven by investments that ease the transition companies’ greening, the wider application of ESG standards and increasingly localized supply chains, although employment growth is offset by part-time displacement in each case,” the report states.

US Republican lawmakers have repeatedly warned that companies adopting ESG standards risk reducing investment returns and hindering economic growth, which could have ripple effects across the economy.

Adaptation to climate change and the demographic dividend in emerging and developing economies also rate highly as net job creators“, the WEF report adds. “Technological advancement through increased adoption of new and frontier technologies and increased digital access is expected to drive job growth in more than half of the companies surveyed, offset by the displacement of jobs expected in a fifth of the companies,” he continues.

The report also cites the rising cost of living for consumers as another factor that will likely pose the biggest threat to the labor market in the next five years and significantly displace jobs.

Attendees take photos and interact with the Engineered Arts Ameca humanoid robot with artificial intelligence, as demonstrated during the Consumer Electronics Show (CES) in Las Vegas, Nevada on January 5, 2022. (Patrick T. Fallon /AFP via Getty Images )

Businesses “must be prepared for future disruptions”

Elsewhere, the WEF found that the current impact of the COVID-19 pandemic, increasing geopolitical divisions and demographic dividends in emerging and developing economies ranked lower as drivers of the business evolution of the respondents.

The latest report comes shortly after Goldman Sachs economists forecast that two-thirds of jobs across America could be partially automated by artificial intelligence, which has surged in use in recent years despite concerns about its potential risks. for society and humanity.

However, economists also noted that its use in both business and society could lead to a nearly $7 trillion increase in global GDP due to increased productivity and manufacturing, among other factors.

According to the WEF report, nearly 75 percent of companies surveyed plan to adopt AI, big data and cloud computing in the next five years, which around 50 percent of companies believe will create job growth and 25 percent expect it will lead to job losses.

Elsewhere, the report found that organizations estimate that approximately 34 percent of all business-related tasks are currently performed by machines, with the remaining 66 percent performed by humans.

“The latest findings of the Future of Employment Report renew calls for action from all labor market stakeholders,” said Sander van ‘t Noordende, CEO of HR consultancy Randstad.

“Accelerating digitization, artificial intelligence and automation are creating enormous opportunities for the global workforce, but employers, governments and other organizations must be prepared for future disruptions. Offering collectively more skilling resources, more efficiently connecting talent to jobs and advocating for a well-regulated labor market, we can protect and prepare workers for a more skilled and equitable future of work,” he added.

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