The World Economic Forum conducted research showing that 83 million jobs globally could be at risk of automation, big data, and economic pressures by 2027. Sectors such as accommodation, wholesale, and arts could be severely impacted, with AI playing a significant role in driving these changes. Despite the potential loss of jobs, the research also suggests that up to 69 million new positions could be created by the same year. McKinsey’s study on the Future of Work in Europe predicts that 94 million European workers may need retraining by 2030 due to advances in automation, with certain sectors like accommodation, food services, and arts facing high percentages of potential job displacement.
The McKinsey report also highlights the potential challenges faced by Europe in terms of job distribution and productivity. It suggests that a significant number of European workers could reside in regions with shrinking labor markets, and calls for the encouragement of remote work as a solution to keep these regions economically afloat. Currently, Europe’s productivity is heavily concentrated in key job markets such as Amsterdam, Copenhagen, London, Madrid, Munich, and Paris, which account for a disproportionate share of the region’s GDP, net job growth, and population growth. In contrast, there are 438 shrinking regions in eastern and southern Europe with declining workforces, older populations, and lower educational attainment.
The need for retraining and upskilling is a major theme in both the World Economic Forum and McKinsey research, with both reports emphasizing the importance of preparing workers for the changing job landscape brought about by automation and other technological advancements. McKinsey suggests that around 21 million workers may need to change occupations by 2030, particularly those without tertiary education. However, the reports also highlight the potential for substantial job growth in certain sectors, with the World Economic Forum forecasting the creation of around 69 million new positions by 2027.
The reports underscore the importance of addressing the challenges posed by automation and economic pressures in order to ensure the long-term stability of the global job market. While there are concerns about job displacement and the unequal distribution of job growth in Europe, there are also opportunities for innovation and adaptation. Encouraging remote work, investing in digital infrastructure, and providing incentives for companies to support workers in transitioning to new roles are among the proposed solutions to these challenges. By focusing on retraining, upskilling, and creating new job opportunities, policymakers and businesses can better prepare for the future of work and mitigate the potential negative impacts of automation on the global workforce.
