May 2023 Future of Jobs Report 2023 2 Drivers of labour market transformation The green transition, technological change, supply- 27 industry clusters and 45 economies from all chain transformations and changing consumer world regions. The Survey covers questions of expectations are all generating demand for new macrotrends and technology trends, their impact jobs across industries and regions. However, these on jobs, their impact on skills, and the workforce positive drivers are offset by growing geoeconomic transformation strategies businesses plan to use. 34 tensions and a cost-of-living crisis. This chapter analyses findings from the World The Future of Jobs Survey was conducted in Economic Forum’s Future of Jobs Survey to late 2022 and early 2023 bringing together the explore how businesses expect macrotrends and perspective of 803 companies – collectively technology adoption to drive industry transformation employing more than 11.3 million workers – across and employment. 2.1 Expected impact of macrotrends on business transformation and employment Results from the survey provide a picture of how Employers also forecast the expected impact businesses expect several macrotrends to impact of these macrotrends on employment within their operations. Trends ranging from technology their organizations. Figure 2.2 suggests that adoption to macroeconomic and geopolitical employers expect most of the disruptions to have outlook, the green transition, demographics and a net positive effect on employment, with most consumer preferences are expected to drive macrotrends expected to drive net job growth. industry transformation in the next five years. Among the macrotrends listed, businesses predict As illustrated in Figure 2.1, businesses identify the strongest net job-creation effect to be driven increased adoption of new and frontier technologies by investments that facilitate the green transition and broadening digital access as the trends which of businesses, the broader application of ESG are most likely to drive transformation in their standards and supply chains becoming more organization, these are expected to drive trends in localized, albeit with job growth offset by partial over 85% of the organizations surveyed. Broader job displacement in each case. Climate change application of Environmental, Social and Governance adaptation and the demographic dividend in (ESG) standards within their organizations will also developing and emerging economies also rate high have a significant impact. The next most-impactful as net job creators. trends are macroeconomic: the rising cost of living and slow economic growth. The impact of Technological advancement through increased investments to drive the green transition was judged adoption of new and frontier technologies and to be the sixth-most impactful macrotrend. Supply increased digital access – the two macrotrends shortages and consumer expectations around social judged by businesses to be most impactful on and environmental issues follow next. Though still their organization in the next five years – are expected to drive the transformation of almost half of also expected to drive job growth in more than companies in the next five years, the ongoing impact half of surveyed companies. However, this is of the COVID-19 pandemic, increased geopolitical offset by expected job displacement in one-fifth divisions and demographic dividends in developing of companies, with the remaining respondents and emerging economies were placed lower as expecting the impact on employment to be roughly drivers of business evolution by respondents. neutral. The net job creation effect places these Future of Jobs Report 2023 20