41% of global firms plan layoffs by 2030 due to AI

According to a World Economic Forum survey, 41% of global firms plan to implement workforce reductions by 2030 as a result of advancements in artificial intelligence (AI). The survey indicates a trend toward significant workforce changes as companies look to integrate AI into their strategies between 2025 and 2030.

The World Economic Forum’s Future of Jobs Report reveals that 77% of the surveyed companies intend to retrain and upskill their existing workforce to work alongside AI systems. Unlike prior reports, this year’s findings do not forecast AI as a net positive for job creation.

Approximately 70% of companies are seeking to hire employees with expertise in AI tool design and development, while 62% aim to recruit individuals capable of effectively interacting with AI technologies. The report highlights the impact of generative AI on the job market, particularly affecting administrative and creative roles.

Tech industry became plagued with ghost jobs

Positions such as postal service clerks, executive secretaries, and payroll clerks are expected to see the most significant declines due to AI integration. Notably, graphic designers and legal secretaries are mentioned for the first time as among the fastest-declining job roles, attributed to AI’s increasing capacity to perform knowledge-based tasks.

The report underlines that companies are focusing on creating an AI-augmented workplace that enhances human capabilities rather than fully replacing human workers. Emphasis is placed on human-machine collaboration, showcasing the continued relevance of human-centered skills.

Macroeconomic trends:

• Five key drivers of labor market transformation:
  • Technological change: Broadening digital access (60% of employers), AI and information processing (86%), and robotics (58%) are top transformative trends.
  • Green transition: Climate change mitigation and adaptation are influencing business transformation, driving roles in renewable energy and environmental engineering.
  • Geoeconomic fragmentation: Increased trade restrictions and subsidies impact 34% of businesses globally, especially in industries like mining and automotive.
  • Demographic shifts: Aging populations are creating demand for healthcare roles, while growing working-age populations in lower-income economies boost education-related roles.
  • Economic uncertainty: Inflation and cost of living remain key concerns, impacting 50% of surveyed businesses.

Job growth and decline:

• Net job growth projected at 78 million jobs by 2030, with 170 million new jobs created but 92 million displaced.
• Fastest-growing roles include:
  • Technology-related: AI specialists, data analysts, software developers.
  • Green transition roles: Renewable energy engineers, environmental engineers.
• Largest-declining roles:
  • Clerical roles: Administrative assistants, cashiers, data entry clerks.
  • Knowledge-based roles: Legal secretaries and graphic designers due to automation and generative AI.

Skills outlook:

• Fastest-growing skills: AI and big data, cybersecurity, technological literacy, resilience, flexibility, and creative thinking.
• Skill instability: 39% of current skills are projected to become outdated by 2030.
• Reskilling and upskilling: 59% of the global workforce needs training, with significant emphasis on digital and green skills.

Workforce strategies:

• Barriers: Skill gaps are the top barrier to transformation, cited by 63% of employers.
• Talent attraction: 64% of employers prioritize employee health and well-being, along with effective reskilling initiatives.
• Diversity and Inclusion: DEI initiatives have risen, with 83% of employers adopting them globally, compared to 67% in 2023.

Technological change and AI:

• Generative AI adoption has surged eightfold since 2022, leading to demand for skills in prompt engineering and AI integration.
• Automation will reduce human task involvement from 47% in 2025 to 33% by 2030, shifting the human-machine collaboration frontier.

Green transition:

• Green jobs show resilience, with significant hiring in renewable energy and climate-related roles.
• Demand for green skills outpaces supply, necessitating prioritization of sustainable expertise and training.

Demographic and regional variances:

• Lower-income economies are experiencing higher labor force participation growth, driven by younger working-age populations.
• High-income countries face challenges from aging populations, pushing automation and workforce augmentation.

Featured image credit: Tim Trad/Unsplash