43% of employers intend to reduce the number of jobs by 2025

43% of employers intend to reduce the number of jobs by 2025


IT NewsFacts and forecastsMarket analytics

Ekaterina Alexandrova | 21.10.2020

43% of employers intend to reduce the number of jobs by 2025

According to the report The Future of Jobs 2020, released by the World Economic Forum (WEF) and research partners – the Eurasian Institute of Competitiveness and
consulting company Strategy Partners, by 2025 43% of employers intend to reduce the number of jobs, 41% plan to expand the use of contractors to perform specialized
works, and only 34% will expand the staff.

The introduction of new technologies will lead to a change in business objectives, jobs and in-demand professional skills, while 40% of employees will require retraining. Poll in Russia
was held with the support of the developer of HRtech solutions TalentTech, a job search service and employees Rabota.ru, and the international staffing company ANCOR.

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The high rate of technology adoption will remain unchanged over the next five years, although it could accelerate in some areas, according to the report. Among the trends are cloud computing,
technologies related to big data and e-commerce. At the same time, interest in encryption has grown significantly, as well as in non-humanoid robots and artificial intelligence. In list
barriers to the introduction of new technologies companies highlight gaps in skills in the local labor market, inability to attract specialized personnel, and lack of leadership skills.

The current situation with the COVID-19 pandemic and digital technologies have created a situation of “double destruction” for workers. According to companies’ estimates, technological transformations in companies will lead to 2025
changes in business objectives, job structure and skills. Already today, thanks to the introduction of new technologies, 43% of the surveyed enterprises plan to reduce the number of active
vacancies.

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The introduction of new technologies, changes in the division of labor between people and machines will lead to the fact that 85 million jobs will be ousted from the labor market, and 97 million new ones will come to replace them. According to
employers, they will be more adapted to new technological realities in terms of the interaction between people, machines and algorithms. Despite the fact that the number of new jobs created
is estimated to exceed the number of reductions, the growth rate will slow down.

“The Russian labor market has already formed a request for specialists who will be in demand in the next five years,” added Aleksey Prazdnichnykh. – First of all, they are specialists in AI and machine
training, data analysts, software and application developers, process automation specialists, management and organizational analysts. ”

“In Russia, new technologies have penetrated many areas of everyday life. This leads to a global transformation of some professions and business processes. For example, large retailers have not been for the first year
use voice robotic assistants for the initial stage of interviews for mass professions. Technologies will replace routine tasks, including complex ones. At the same time, the role of specialists
especially with well-developed soft skills, will become more in demand in the future 5 years, it is such employees who will seek a balance between artificial intelligence technologies and traditional
approaches “, – added Vadim Shapovalov, CEO of the Rabota.ru service.

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New requirements for relevant professional skills will create a significant gap between the current and expected skill levels of workers. Some of the most in-demand skills will be:
critical thinking and ability to analyze; ability to solve problems; self-organization skills; ability to actively learn; psychological stability, stress resistance and flexibility.

“For Russian employers, the most important professional skill in the next five years will be the ability to comprehensively solve problems,” noted Aleksey Prazdnichnykh. – Problem-solving stops being
the prerogative of consultants and is part of the skill set required today in many new professions. The top five also includes skills such as the ability to think analytically and
innovation, emotional intelligence and two groups of skills that are becoming especially in demand in the “new reality” – readiness for self-development and active learning, stress resistance and
flexibility”.

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Companies estimate that over the next five years, 40% of employees will have to undergo retraining for 6 months or less, 94% of companies expect new employees to be acquired
skills at work. It is important that in 2018 this figure was only 65%.

The results of the analysis presented in the report show an increase in interest in education and vocational training in the online format both among workers and among the unemployed: by 4 times
the number of employees studying on their own initiative has increased; the number of employers providing such opportunities increased 5 times; 9 times – the number of students within
state programs. Moreover, if the unemployed are interested in gaining knowledge in the field of data analysis, computer science and information technology, then hired workers prefer personal courses.
development.

In the context of a changing labor market, the time for retraining and advanced training of workers is reduced. For those who will remain in their positions, the share of key professional skills,
which will change over the next five years is 40%, and 50% of all employees will require retraining.

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“The world will see big changes in employment: businesses are already accustomed to working with remote employees, now it will be much easier and more profitable to hire employees from other regions, including
freelance format. Uberization flywheel will create hundreds of millions of jobs in various fields. The labor shortage will be smoothed out by automation, robotization and machine learning. They are worth considering
not as a substitute for a person, but as a competence enhancer. Those companies that prepared and implemented digital tools, taught people the principles of remote work, as well as those specialists who
learned to be effective in the digital environment, win and remain competitive in the new reality, ”said Andrey Mityukov, managing partner of the IT holding TalentTech.

The vast majority of employers recognize the value of investing in human capital. On average, 66% of surveyed companies expect to receive a return on investment in
professional development and retraining of employees, while almost 17% of employers are not at all sure that they will be able to return their investments. Despite what employers believe
that by 2025, retraining and advanced training will be required for more than 70% of all workers, only 42% of workers are ready to take advantage of the opportunity for retraining. Today
a significant number of business leaders understand that retraining of employees is cost effective and provides high returns not only for the company, but also for society
generally. The companies hope that this will retain and reallocate nearly 50% of workers as a result of technology and automation expansion.

About 20% of companies answered that they use government support to implement competency development programs for their employees. Given the scale and importance of the changes, the government can
play an important role in creating incentives for corporate investment in tomorrow’s jobs, providing a more effective social support system for workers who have lost their jobs in
the search for new job opportunities; and the development of the education and training system.

“For Russia, the adaptation of the education system to new conditions is no less relevant than for other countries,” stressed Aleksey Prazdnichnykh. – There is still a fairly large gap with countries
leaders in terms of indicators characterizing the level of readiness of the education system, the work of companies in employee development and the effectiveness of employment promotion policies. It’s time to shape
new strategic vision and accelerate government initiatives ”.

The report uses a unique combination of qualitative and quantitative data from various sources, including big data, to form a holistic understanding of the current situation and key
trends in technological development, transformation of employment structure, competencies and the ecosystem of professional development. This report uses the results of a survey of senior executives
links responsible for human resources policy, strategy and innovation in companies operating in 26 countries in 15 separate economic and social sectors.

personnel, Robotization



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