5 Key Factors Rapidly Transforming the Future Job Market
In this blog, we explore five key themes that are shaping the future of the job market. We will explore what career opportunities are turning out to be important for businesses and individuals to consider as they look into future strategies.
With existing global economic transformation and employment trends as per 2023 research study published by McKinsey. Many of us are experiencing major transformations in the job industry. This has been going over since the past ten to fifteen years, but specifically the last three-years, there has been an acceleration of dynamic changes within industries and workforces due to:
Accelerated technological advancement
Rise in Artificial Intelligence/Machine Learning (AI/ML) tools leading to:
Movement of traditional jobs to automated business model
Outsourcing may increase with improved AI automated control measures
Continued globalization and/or deglobalization led by geopolitical changes
Side effects in supply chain and other industries since 2021, the post pandemic period
There is a rise in new jobs being created in fields such as technology, sustainability portfolio themes, healthcare, and renewable energy projects. On the other hand, rapidly changing economic stability, migration policies and recessionary trends in countries is causing chaos or organizational economic challenges for businesses.
There has also been an enormous shift towards flexible and remote work arrangements to back to onsite work, each business is responding to current changes differently. As per 2023 survey published by Harvard Business, there has been growing tensions due to conflicting perspectives on remote work. Technology related projects were outsourced since 2008, so nothing new there, it is the effects on all other businesses across all industries which brought significant changes in the economy since 2021.
We also observed an increased demand for skills such as problem-solving, creativity, and communication sectors and also the need to upskill from time to time. For those who weren’t forced into new career decisions due to the pandemic disruption in 2020-21, some of us were given an opportunity to reflect and evaluate career choices, work-life balance and overall happiness in life. Work from home jobs are undoubtedly becoming the new favorite among the people.
Few others in various business sectors are now challenged with recessionary trends causing job loss. Some of us experienced creating some breathing room and opportunity to make meaningful career changes in the last three years.
Key Factor #1: The workforce is decentralizing
One of the major changes probably since the industrial revolution in the post pandemic period of 2021 has been decentralization of the workforce. Many large and medium size organizations were forced to adopt remote work arrangements in order to continue operating during the crisis. This has resulted in a major shift away from traditional office-based work towards hybrid and employee-friendly work arrangements. This has also promoted a sense of digital nomad lifestyle among people.
The increased use of technology and online platforms has driven this decentralization, allowing teams to meet virtually and tasks to be completed remotely.
The pandemic years were beginning of new cycle, highlighted the benefits of remote work:
Lower commute time and cost for employees:
Increased leisure and family time. While few young parents may differ as they struggle juggling between online meetings and kids’ school work. Others needed daycare help and break from the kids. Some others loved that extra family time.
Lower cost of living due to negligible day care cost for parents with young or special needs children.
Substantial reduction in travel cost for consultancy work for private and public organizations.
Many in the IT industry were already used to remote working, however a pandemic changed the business operational model for many other industries.
The pandemic is long over, we see many business sectors want their employees on site now. However it’s clear that decentralization is likely to continue. Global organizations and employees have adapted to remote work and have seen the benefits of flexible working arrangements.
As long as we have solid internet connection this trend will continue. If you observed lots of telecommunication towers/infrastructure has been built post pandemic to amplify and match accelerated technological needs. Many businesses reported that workforce productivity has improved. Additionally some employees are happier due to more work-life balance, autonomy and trust with their employers.
There have been mass-movements in the workforce in the post pandemic period and now due to geopolitical and economic recession. These changes are here to continue to change the future job opportunities.
Key Factor #2: The gig economy meets the rise of the entrepreneur
With the continued advancement of technology, many business strategists are anticipating an evolution of the technological advanced economy. This may come with its own challenges as AI and a wide network of new products and services. Short term contractors and freelance work has been on increase since the past 10 years , however the cost is now being questioned by few large organizations.
Quite similar to what happened after 2005 when large organizations went through Business Process Outsourcing (BPO), then to KPO (knowledge process outsourcing). The challenge will now be in Data Science and IT resources with a constructively constrained approach to safeguard identity theft across worldwide economies due to geopolitical shifts and increased costs.
Reality check is required to secure data using more advanced technology as all global economies are now using the data science for not just digital marketing and financial operations, supply chain but increasingly for online medical services improvements, discoveries and Artificial Intelligence research purposes.
With digital market solutions diluting supply and demand across a much wider network of product and service providers, traditional employee arrangements that offer short-term contracts and freelance work are being replaced by the rise of entrepreneurship.
While technology is supporting this movement, few economies recognize and encourage small entrepreneurs as they are the backbone of the economy. It is now simpler and more affordable than ever to set up a business, however government support will remain a key factor for future economic growth and self reliant economies.
Digital platform development has seen huge advancements in recent years, making it easier than ever to set-up and run your own enterprise, allowing individuals to reduce the risk of starting-up and growing a company, developing and marketing their own products or services, either as a part-time hustle or full-time career move.
There is however some overlap between the gig economy and entrepreneurialism, as many gig workers are choosing to retain paid work alongside setting up entrepreneurial endeavors, as lucrative side hustles to generate more income, as cost of living continues to rise.
Entrepreneurs are also more likely to delve into offerings that they are passionate about, which creates a sense of value, satisfaction and the feel-good factor of doing something that they love. The rise of entrepreneurialism will undoubtedly continue to be an important part of the job market, as individuals gain confidence to seek out new opportunities to start and grow their own businesses.
“Your life expands in proportion to your courage. Fear limits a leader.”
~ John C. Maxwell
Key Factor #3: The power of choice and personal values
Personal values, ethics, and ideas that excite people are becoming increasingly important factors that can influence career choices. For a growing number of people, predominantly millennials and Gen Z, finding a career that aligns with your values and allows you to make a positive impact in the world is of top priority. They may be drawn to careers in fields such as social work, education, or environmental conservation because it allows them to make a difference.
There is a growing culture of support that encourages young people to be motivated by careers that allow them to pursue their passions and interests, rather than just chasing money or career stability. These strong ethics and ideals are also playing a role in career choices, with many job seekers evaluating organizations based on strong ethical standards who are committed to making a positive impact.
This, along with rapid economic expansion and digital advancement, is creating an increasing talent gap for some of the more traditional industries, making it a candidates’ market when it comes to recruitment. Businesses need to align to these growing needs by considering how they contribute to DE&I and ESG initiatives, as well as how they compensate employees and commit to learning and development opportunities. By creating career offerings that align more to personal values, employees will feel they are working within a company culture that’s meaningful, leading to greater job satisfaction and fulfillment.
Key Factor #4: ‘We culture’ versus ‘Me culture’ in the job market
People care about their environment and community engagement more than ever before. With greater emphasis placed on teamwork and collaboration in recent years, individuals and businesses alike are recognizing the importance of identifying collective goals for teams to work towards. Businesses are seeking job candidates not only by their tangible and academic skill sets, but also by their personality traits and emotional intelligence, understanding the importance a diverse team has on enhancing performance and productivity. This shift has been driven by a number of factors, including the increasing complexity of problems, systems and solutions, particularly within the digital technology industry. Put simply, diverse perspectives and ideas can lead to better outcomes.
'We culture' creates a sense of community and collaboration, which is particularly important for young people, who have experienced isolation and lack of connection. This feeling of togetherness and belonging within an organization can lead to greater job satisfaction and productivity. It can also help to create a positive working environment in which people feel supported and valued for their contributions, through individual and collective achievement.
“You must do the thing you think you cannot do”
~ Eleanor Roosevelt
Key Factor #5: Health is Wealth
Although employee wellbeing has been a key area of focus for many organizations, post-pandemic has placed huge emphasis on the importance of nurturing the workforce and creating environments that support, rather than deplete, an individual’s physical and mental health.
Within the past three years, we have all experienced widespread stress due to the pandemic, anxiety due to uncertainty about the future, concerns about the health and safety of ourselves and our loved ones and disruptions to daily life. Employees are prioritizing healthy lifestyles and wellbeing more than ever before – and are more likely to be drawn to organizations that provide a broad range of health benefits, including mental health resources, self-care activities, flexible working and a safe working environment.
There is a growing consensus that total employee wellbeing is important for the success of both the individual employee and the company as a whole. It can lead to increased productivity, improved employee retention, and a positive work environment, whilst staff feel more connected to the company and more willing to go above and beyond in their work.
In Summary
While it is difficult to predict the future job market, it will continue to be shaped by:
Technological advancements, with digitally enhanced society
Rapidly changing economic conditions
Adjusting to environment - political and geographical
Mass migration driven by disturbing events in global economies driven by geopolitical changes
This in turn will shift and change the types of jobs that are available and in-demand. Given the themes we have identified in this blog, it’s clear that there has been a surge in creation of new industries and job roles, as well as changes in the way that work is performed within existing industries.
For high school and university graduates or anyone considering a job or career change, the job market is an exciting challenging space. This period of rapid change is dynamic, fluid and undefined – and unpredictable at times. Career paths are no longer linear and will require individuals to adapt, be open to new opportunities and to learning new skills. The way the job market is changing, people need to up their job search skills as well.
We will all need to:
Stay informed about the changing job market scenarios
Invest in our own professional development to get the best from the opportunities
Be pragmatic in our approach for finding new opportunities
Stay brave and resilient as Individuals
Sometimes ok to be unapologetic while pursuing sectors of our own interest - like what inspires and excites us.
If you are interested in pursuing a new career or are entering the job market for the first time, it is important to take advice and guidance from trusted sources, such as career counselors, educators, and industry professionals, who can provide more personalized and accurate information about different career paths. If you are interested in business coaching, then a BG5® Career Design Overview may be what you need. It is the perfect way to start learning about your innate talents and interests , as well as discern where to invest your time, effort and energy to lead a more fulfilling life.
To get started with Shining Compass Business Coaching, follow the simple steps below:
Book a free 15-minute discovery call with Shining Compass. We offer global online coaching, so location is no problem – just find a time that works for you!
During our discovery call, we will get to know each other to see if we are a good fit
If we match, select your preferred coaching option and schedule a time with your Shining Compass coach
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