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The Future of Jobs - World Economic Forum

Global Challenge Insight report The Future of jobs Employment, Skills and Workforce Strategy for the Fourth Industrial Revolution January 2016. Global Challenge Insight report The Future of jobs Employment, Skills and Workforce Strategy for the Fourth Industrial Revolution January 2016. TERMS OF USE AND DISCLAIMER. The Future of jobs report (herein: report ) presents information and data that were compiled and/or collected by the World Economic Forum (all information and data referred herein as Data ). Data in this report is subject to change without notice. The terms country and nation as used in this report do not in all cases refer to a territorial entity that is a state as understood by international law and practice. The term covers well-defined, geographically self-contained Economic areas that may not be states but for which statistical data are maintained on a separate and independent basis.

The Future of Jobs The Future of Jobs Employment, Skills and Workforce Strategy for the Fourth Industrial Revolution January 2016 Global Challenge Insight Report

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1 Global Challenge Insight report The Future of jobs Employment, Skills and Workforce Strategy for the Fourth Industrial Revolution January 2016. Global Challenge Insight report The Future of jobs Employment, Skills and Workforce Strategy for the Fourth Industrial Revolution January 2016. TERMS OF USE AND DISCLAIMER. The Future of jobs report (herein: report ) presents information and data that were compiled and/or collected by the World Economic Forum (all information and data referred herein as Data ). Data in this report is subject to change without notice. The terms country and nation as used in this report do not in all cases refer to a territorial entity that is a state as understood by international law and practice. The term covers well-defined, geographically self-contained Economic areas that may not be states but for which statistical data are maintained on a separate and independent basis.

2 Although the World Economic Forum takes every reasonable step to ensure that the Data thus compiled and/or collected is accurately reflected in this report , the World Economic Forum , its agents, officers, and employees: (i) provide the Data as is, as available and without warranty of any kind, either express or implied, including, without limitation, warranties of merchantability, fitness for a particular purpose and non-infringement; (ii) make no representations, express or implied, as to the accuracy of the Data contained in this report or its suitability for any particular purpose; (iii) accept no liability for any use of the said Data or reliance placed on it, in particular, for any interpretation, decisions, or actions based on the Data in this report . Other parties may have ownership interests in some of the Data contained in this report .

3 The World Economic Forum in no way represents or warrants that it owns or controls all rights in all Data, and the World Economic Forum will not be liable to users for any claims brought against users by third parties in connection with their use of any Data. The World Economic Forum , its agents, officers, and employees do not endorse or in any respect warrant any third-party products or services by virtue of any Data, material, or content referred to or included in this report . Users shall not infringe upon the integrity of the Data and in particular shall refrain from any act of alteration of the Data that intentionally affects its nature or accuracy. If the Data is materially transformed by the user, this must be stated explicitly along with the required source citation. For Data compiled by parties other than the World Economic Forum , users must refer to these parties' terms of use, in particular concerning the attribution, distribution, and reproduction of the Data.

4 When Data for which the World Economic Forum is the source (herein World Economic Forum ) is distributed or reproduced, it must appear accurately and be attributed to the World Economic Forum . This source attribution requirement is attached to any use of Data, whether obtained directly from the World Economic Forum or from a user. Users who make World Economic Forum Data available to other users through any type of distribution or download environment agree to make reasonable efforts to communicate and promote compliance by their end users with these terms. Users who intend to sell World Economic Forum Data as part of a database or as a standalone product must first obtain the permission from the World Economic Forum 2016 World Economic Forum All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system.

5 REF 010116. Contents v Preface 1 PART 1: PREPARING FOR THE WORKFORCE OF THE FOURTH INDUSTRIAL. REVOLUTION. 3 Chapter 1: The Future of jobs and Skills 3 Introduction 5 Drivers of Change 10 Employment Trends 19 Skills Stability 26 Future Workforce Strategy 33 Chapter 2: The Industry Gender Gap 34 The Business Case for Change 36 Gaps in the Female Talent Pipeline 37 Barriers to Change 39 Women and Work in the Fourth Industrial Revolution 40 Approaches to Leveraging Female Talent 43 Endnotes 45 References and Further Reading 49 Appendix A: report Methodology 57 Appendix B: Industry and Regional Classifications 59 PART 2: INDUSTRY, REGIONAL AND GENDER GAP PROFILES. 61 User's Guide: How to Read the Industry, Regional and Gender Gap Profiles 69 List of Industry, Regional and Gender Gap Profiles 71 Industry Profiles 91 Country and Regional Profiles 123 Industry Gender Gap Profiles 143 Acknowledgements 145 Contributors 147 Global Challenge Partners The Future of jobs report | iii iv | The Future of jobs report Preface KLAUS SCHWAB.

6 Founder and Executive Chairman RICHARD SAMANS. Member of the Managing Board Today, we are at the beginning of a Fourth Industrial instability result in most businesses currently facing major Revolution. Developments in genetics, artificial intelligence, recruitment challenges and talent shortages, a pattern robotics, nanotechnology, 3D printing and biotechnology, already evident in the results and set to get worse over the to name just a few, are all building on and amplifying one next five years. another. This will lay the foundation for a revolution more The question, then, is how business, government and comprehensive and all-encompassing than anything we individuals will react to these developments. To prevent a have ever seen. Smart systems homes, factories, farms, worst-case scenario technological change accompanied grids or cities will help tackle problems ranging from by talent shortages, mass unemployment and growing supply chain management to climate change.

7 The rise of the inequality reskilling and upskilling of today's workers will sharing economy will allow people to monetize everything be critical. While much has been said about the need from their empty house to their car. for reform in basic education, it is simply not possible to While the impending change holds great promise, weather the current technological revolution by waiting for the patterns of consumption, production and employment the next generation's workforce to become better prepared. created by it also pose major challenges requiring proactive Instead it is critical that businesses take an active role in adaptation by corporations, governments and individuals. supporting their current workforces through re-training, Concurrent to the technological revolution are a set of that individuals take a proactive approach to their own broader socio- Economic , geopolitical and demographic lifelong learning and that governments create the enabling drivers of change, each interacting in multiple directions environment, rapidly and creatively, to assist these efforts.

8 In and intensifying one another. As entire industries adjust, particular, business collaboration within industries to create most occupations are undergoing a fundamental larger pools of skilled talent will become indispensable, transformation. While some jobs are threatened by as will multi-sector skilling partnerships that leverage the redundancy and others grow rapidly, existing jobs are also very same collaborative models that underpin many of going through a change in the skill sets required to do them. the technology-driven business changes underway today. The debate on these transformations is often polarized Additionally, better data and planning metrics, such as between those who foresee limitless new opportunities those in this report , are critical in helping to anticipate and and those that foresee massive dislocation of jobs .

9 In fact, proactively manage the current transition in labour markets. the reality is highly specific to the industry, region and We are grateful for the leadership of Jeffrey Joerres, occupation in question as well as the ability of various Executive Chairman Emeritus, ManpowerGroup and Chair stakeholders to manage change. of the Global Agenda Council on the Future of jobs ; Jamie The Future of jobs report is a first step in becoming McAuliffe, President and CEO, Education for Employment specific about the changes at hand. It taps into the and Vice-Chair of the Global Agenda Council on the Future knowledge of those who are best placed to observe the of jobs ; J. Frank Brown, Managing Director and Chief dynamics of workforces Chief Human Resources and Operating Officer, General Atlantic LLC and Chair of the Strategy Officers by asking them what the current shifts Global Agenda Council on Gender Parity and Mara Swan, mean, specifically for employment, skills and recruitment Executive Vice-President, Global Strategy and Talent, across industries and geographies.

10 In particular, we have ManpowerGroup and Vice-Chair of the Global Agenda introduced a new measure skills stability to quantify the Council on Gender Parity. degree of skills disruption within an occupation, a We would also like to express our appreciation to Till job family or an entire industry. We have also been able Leopold, Project Lead, Employment, Skills and Human to provide an outlook on the gender dynamics of the Capital Initiative; Vesselina Ratcheva, Data Analyst, changes underway, a key element in understanding how Employment and Gender Initiatives; and Saadia Zahidi, the benefits and burdens of the Fourth Industrial Revolution Head of Employment and Gender Initiatives, for their will be distributed. dedication to this report . We would like to thank Yasmina Overall, there is a modestly positive outlook for Bekhouche, Kristin Keveloh, Paulina Padilla Ugarte, Valerie employment across most industries, with jobs growth Peyre, Pearl Samandari and Susan Wilkinson for their expected in several sectors.


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