The Information and Decision Support Center (IDSC) at the Egyptian Cabinet has released a new analysis on the future of employment, highlighting the profound impact of technology and globalization on the labor market. This analysis builds upon research conducted since the World Economic Forum’s initial report on the future of work.
Key Findings: A Mix of Opportunity and Disruption
The analysis reveals a complex landscape, characterized by both significant challenges and emerging opportunities. While technological advancements, such as artificial intelligence and automation, are poised to disrupt traditional job roles, they are also creating new avenues for employment across various sectors.
The Rise of New Roles and the Decline of Traditional Occupations
Between 2007 and 2018 in the United States, the adoption of technology led to the displacement of approximately 2.6 million jobs, primarily in roles involving routine tasks, such as data entry and administrative support. However, this period also witnessed the emergence of new, non-routine jobs that demand analytical and critical thinking skills.
Accelerating Technological Adoption
The past two years have seen a rapid acceleration in the adoption of advanced technologies by companies worldwide. Cloud computing, big data analytics, and e-commerce remain prominent drivers.
- Artificial Intelligence (AI): Leading the charge in sectors like finance, healthcare, and transportation.
- Big Data & Internet of Things (IoT): Widely utilized in industries such as mining.
- Robotics & Automation: Increasingly integrated across various sectors.
- Encryption Technologies: Gaining significant importance due to growing cybersecurity concerns.
Reshaping the Workforce
The 2020 “Future of Jobs” survey by the World Economic Forum highlights how companies are adapting to these technological shifts:
- Restructuring Value Chains: 55% of companies are re-evaluating their operational models.
- Increasing Automation: 43% are investing in automation technologies.
- Expanding Workforces: 34% plan to increase their workforce to leverage new technological capabilities.
- Outsourcing Specialized Tasks: 41% intend to outsource specialized functions to third-party providers.
The Evolving Job Market
By 2025, it is estimated that 85 million jobs globally will be displaced due to automation. However, this period is also expected to witness the emergence of 97 million new roles, spanning 15 industries and 26 economies.
Emerging Roles in Demand:
- Data Analysts & Scientists
- Artificial Intelligence Specialists
- Robotics Engineers
- Software Developers
- Digital Transformation Experts
- Cybersecurity Professionals
- Process Automation Specialists
- IoT Specialists
Sector-Specific Roles:
- Automotive: Material Engineers
- Consumer: E-commerce Specialists
- Energy: Renewable Energy Engineers
- Healthcare: Biologists
Addressing the Challenges
To effectively navigate this period of transition, the IDSC analysis recommends several key strategies:
- Upskilling & Reskilling Programs: Equip the existing workforce with the necessary skills for emerging roles.
- Education Reform: Align educational curricula with the evolving demands of the labor market.
- Data Security & Cybersecurity: Strengthen measures to protect data and mitigate cyber threats.
- Innovation in Emerging Sectors: Foster growth in sectors such as healthcare, fintech, and renewable energy.
- Social Safety Nets: Implement robust social safety nets to mitigate economic disparities and support displaced workers.
- Effective Governance: Ensure responsible and ethical development and deployment of new technologies.
The IDSC analysis highlights a complex future of work, characterized by both significant job displacement and the emergence of new opportunities. While automation technologies are expected to displace 85 million jobs globally by 2025, it is also projected that 97 million new roles will emerge. The analysis emphasizes the need for proactive measures, including comprehensive reskilling programs, education reform, and robust social safety nets, to ensure a smooth transition and mitigate the potential negative impacts of these changes
