The World Economic Forum’s Future of Jobs Report 2023 analyses how jobs and skills are projected to evolve over the next five years. The report, accessible here, brings together insights from over 800 companies across 45 economies and 27 industry clusters, offering a comprehensive view of the socio-economic and technological trends shaping the future workplace.
Key Findings of the Report
The 2023 edition of the Future of Jobs Report highlights several significant trends and challenges. Labour market outcomes diverge globally, with high-income countries experiencing tight labour markets while low—and lower-middle-income countries face higher unemployment levels. The report identifies technology adoption, environmental standards, and macroeconomic factors such as rising living costs and slow economic growth as major drivers of business transformation.
Technology and Job Market Transformation:
- Technology Adoption: Over 85% of surveyed organisations anticipate increased adoption of new technologies such as big data, cloud computing, and AI. These advancements are expected to create jobs in digital and green sectors while displacing roles in more traditional fields.
- Skills Disruption: Employers predict a 23% job churn, reflecting a mix of emerging roles and declining ones. Jobs in technology, sustainability, and digital commerce are set to grow, while clerical and secretarial positions are expected to decline.
Skill Development Needs:
- Analytical and Creative Thinking: These remain the top skills required, with employers significantly emphasising cognitive and self-efficacy skills.
- Training Gaps: Although 60% of workers will need retraining by 2027, only half currently have adequate training opportunities.
Addressing Skills Gaps through TVET Programmes
Technical and Vocational Education and Training (TVET) programmes can be essential in addressing these evolving needs. TVET provides practical skills and knowledge that align with industry demands, bridging the skills gap and enhancing workforce readiness.
How TVET Can Improve Workforce Readiness:
- Relevant Skill Training: TVET programmes can be tailored to meet the specific needs of industries, ensuring that workers are equipped with the latest skills in technology, sustainability, and digital literacy.
- Flexible Learning Paths: TVET offers modular and stackable credentials, which allows workers to continuously update their skills in response to changing job market demands.
- Work-Based Learning: TVET programmes often include apprenticeships and on-the-job training, which provide hands-on experience and facilitate smoother transitions into employment.
Examples of Effective Apprenticeship Programmes
Several countries have successfully implemented apprenticeship programmes to mitigate skills gaps and improve employment outcomes. Here are three notable examples:
1. United Kingdom:
The UK has a robust apprenticeship system that combines practical training with classroom instruction. Employers across various sectors, from engineering to digital marketing, actively participate in these programmes, providing apprentices with real-world experience and industry-relevant skills. The government’s commitment to apprenticeships is evident through its financial incentives for businesses that hire apprentices.
2. Germany:
Germany’s dual education system is renowned for its effectiveness in vocational training. The programme integrates theoretical education with practical training in companies, covering a wide range of occupations. This approach ensures that students gain valuable work experience while studying, leading to high employment rates among graduates.
3. Australia:
Australia’s apprenticeship and traineeship system is designed to cater to the needs of both traditional trades and emerging industries. The country offers a flexible framework that allows apprentices to gain qualifications at different levels, from certificates to advanced diplomas. This system supports lifelong learning and helps workers adapt to new roles in a dynamic job market.
4. South Africa:
South Africa has a well-established system of apprenticeships and leadership to develop the skills necessary for various industries. The country’s Sector Education and Training Authorities (SETAs) manage these programmes, ensuring they align with industry needs and national skills development strategies. Apprenticeships focus on trades such as plumbing, electrical work, and carpentry, combining on-the-job training with classroom instruction. The National Skills Development Strategy prioritises these programmes, contributing to higher employment rates, relevant skills development, and economic growth.
Conclusion
The Future of Jobs Report 2023 underscores the need for strategic investments in skills development to navigate the evolving job market. TVET programmes, focusing on practical and industry-specific training, are essential in addressing these skills gaps. By looking at successful models from countries like the UK, Germany, and Australia, other nations can develop effective apprenticeship programmes to enhance workforce readiness and encourage economic growth. For a more detailed exploration of the report’s findings, visit the World Economic Forum’s website.
