Imagen cabecera noticia

Next employment trends according to the report "The Future of Work 2023" by the International Labour Organization (ILO).
08 May 2023

  • Twitter logo

In the report "The Future of Work 2023", the International Labor Organization (ILO) establishes some important trends regarding work in the coming years. The report discusses the enormous challenges facing labor markets in 2023. The global outlook for labor markets has deteriorated significantly during 2022 due to emerging geopolitical tensions, conflicts in Ukraine, an uneven recovery from the pandemic, and bottlenecks in supply chains. All of this has set the stage for an episode of stagflation, the first time since the 1970s that a period of high inflation and low growth has occurred simultaneously. Policymakers face a difficult balancing act as they grapple with high inflation in an environment of incomplete job recovery. Most countries have not yet returned to the levels of employment and hours worked seen in late 2019, before the outbreak of the COVID-19 health crisis. However, a series of supply shocks, mainly in food and commodity markets, have raised producer prices, leading to spikes in consumer price inflation and prompting major central banks to adopt a tighter policy stance. In the absence of corresponding increases in labor incomes, the cost-of-living crisis directly threatens household livelihoods and risks depressing aggregate demand. Many countries have accumulated a significant amount of debt, in part to address the severe consequences of the pandemic, and the risk of a global debt crisis is high, jeopardizing the fragile recovery in many frontier markets.

In this context, significant decent work deficits persist around the world, undermining social justice. Hundreds of millions of people do not have access to paid jobs and those who are employed often lack access to social protection and fundamental rights at work. Most workers are informal or unable to express their interests through social dialogue. Income is distributed very unequally, so that many workers are unable to lift themselves out of poverty. Labor market prospects are highly unequal, not only between but also within countries. Gender gaps exist in all areas of the world of work and young people face particular challenges.
 
Informality and working poverty increased further with the COVID-19 crisis. Despite the recovery that began in 2021, the continued shortage of better job opportunities is likely to worsen with the projected slowdown, driving workers into poorer quality jobs and depriving others of adequate social protection. Real labor incomes decline as prices outpace nominal incomes. The resulting downward pressure on demand in high-income countries impacts low-income countries.
 
Some external points on which the report is based: 

1. The importance of technology: Technology will continue to be a determining factor in the world of work, as more and more tasks will be automated and digital skills will be required to perform in the labor market. In addition, technology is expected to have an impact on the creation and destruction of jobs.

2. Demographic changes: The aging of the population and the decrease in the birth rate are two factors that will influence the labor market in the coming years. This may generate a smaller supply of workers and a greater demand for specific skills, which could impact job creation.

3. Economic inequality: Economic inequality will continue to be a major issue in the future, and is expected to continue to increase. This may generate social and political tensions and affect people's quality of life.

4. Changes in the organization of work: Work is expected to be organized more flexibly in the future, with the possibility of working from anywhere with an internet connection. In addition, self-employment is expected to increase and job stability to decrease.

5. Changes in training and education: Training and education will be critical to adapt to changes in the labor market. Continuing education is expected to become increasingly important to stay current and acquire new skills.

6. Changes in social protection: Social protection will have to adapt to changes in the labor market, as many workers will be in more precarious situations. Public policies will be required to ensure adequate social security for all workers.

In summary, the ILO report shows that the labor market will continue to change in the coming years. Technology, demographic changes, economic inequality, work organization, training and education, and social protection will be important issues to consider for individuals, companies and governments. In this context, it will be essential to adapt to change, acquire new skills and be prepared for the new forms of work that will arise.

The year 2023 presents itself as a period of great opportunities for skills development. Companies, organizations and governments are increasingly aware of the importance of having highly trained personnel with adequate skills to meet the challenges of the current and future labor market.
 
That is why the development and training of people in terms of skills and competencies becomes a key aspect for the success of any company or institution. In this sense, 2023 is expected to be a year of major investments in training programs and personnel training.
 
The demand for digital and technological skills continues to grow, and this has led to an increased need for education and training in these areas. Skills development in artificial intelligence, data analytics, cybersecurity and programming are just a few examples of key areas that are expected to be developed in 2023.
 
But there are also other skills that will be increasingly valued in 2023, such as creativity, innovation, leadership, problem solving and decision making. These skills are especially relevant in an ever-changing world with new challenges constantly emerging.
 
In short, 2023 will be a year in which skills development will be a priority for companies, organizations and governments. This represents a great opportunity for people who want to improve their skills and acquire new competencies to stand out in the current and future job market. In addition, skills development can be a key tool for talent retention and productivity improvement in companies.
 

related content