Why is the world of work changing and how?
For part of our research programme, a series of future labour market projections were producediv to estimate how the world of work will be reshaped by the megatrends.
These projections reveal the economy is changing slowly but steadily and inexorably. By 2035, the structure of the labour market will have changed substantially.
Of particular importance, and as mentioned above, there will be more women in work. Of the 2.6 million new jobs there are projected to be by 2035, the majority are forecast to be filled by women. Conversely, the jobs most vulnerable to automation are currently mainly held by men.
Two million jobs are likely to be displaced due to the adoption of new technologies in the labour market by 2035. Those that are most vulnerable to displacement are those in lower skilled roles. This is, therefore, a key group who are likely to need re-skilling or upskilling so they can find jobs elsewhere.
However, far from being all doom and gloom, faster technological change and improving the provision of social services will also create many more job opportunities. Most new jobs created by 2035 — nearly 90 per cent — will be higher skilled jobs in professional and associate professional occupations.
The level of replacement demand will continue to grow (17.1 million job openings created by workers leaving the workforce for reasons such as retirement, caring, etc.) so there will be job openings even in areas which are expected to see significant job losses. The future labour market will continue to be very dynamic, creating new employment opportunities even in declining sectors and occupations.
More young people are forecast to stay in education longer and acquire more / higher level qualifications. By 2035, the number of economically active people with a postgraduate degree level and equivalent (QCF level 7-8) will almost double to 8.3 million.