When you think of the future of work are you excited or worried? 37 % of over 10,029 members of the general population based in China, Germany, India, the UK and the US surveyed by professional service firm, PricewaterhouseCoopers said they were excited. 18% expressed worry over the future of work.
Regardless of whether you are worried or excited, below are top five forces PwC says will drive the future of work.
Technological breakthroughs
Characterised by rapid advances in technological innovation including in automation, robotics and Artificial Intelligence are advancing quickly, dramatically changing the nature and number of jobs available.
“Automation, machines are replacing so many jobs. Many people think that only the poor and uneducated are being displaced. I’m afraid that in a few years everyone will be replaceable,” says a respondent.
Technology has the power to improve lives, raising productivity, living standards and average life span, and free people to focus on personal fulfilment. But it also brings the threat of social unrest and political upheaval if economic advantages are not shared equitably
Demographic shifts
The changing size, distribution and age profile of the world’s population would also be critical factor. With a few regional exceptions the world’s population is ageing, putting pressure on business, social institutions and economies.
A long life span will affect business models, talent ambitions and pension costs. Older workers will need to learn new skills and work for longer. ‘Re-tooling’ will become the norm. The shortage of a human workforce in a number of rapidly-ageing economies will drive the need for automation and productivity enhancements.
Rapid urbanisation
Significant increase in the world’s population moving to live in cities will continue the study says. By 2030, the UN projects that 4.9 billion people will be urban dwellers and, by 2050, the world’s urban population will have increased by some 72%1 . Already, many of the largest cities have GDPs larger than mid-size countries. In this new world, cities will become important agents for job creation.
Shifts in global economic power
The rapidly developing nations, particularly those with a large working-age population, that embrace a business ethos, attract investment and improve their education system will gain the most says PwC.
Emerging nations face the biggest challenge as technology increases the gulf with the developed world; unemployment and migration will continue to be rampant without significant, sustained investment. The erosion of the middle class, wealth disparity and job losses due to large-scale automation will increase the risk of social unrest in developed countries.
Resource scarcity and climate change
Depleted fossil fuels, extreme weather, rising sea levels and water shortages will be factors shaping businesses. Demand for energy and water is forecast to increase by as much as 50% and 40% respectively by 20302.
New types of jobs in alternative energy, new engineering processes, product design and waste management and re-use will need to be created to deal with these needs. Traditional energy industries, and the millions of people employed by them, will see a rapid restructuring.
What does these mean for the future of work?
PwC now forecasts that four worlds for work by 2030 marked by the effect of collectivism versus individualism, and integration versus fragmentation.
Will ‘me first’ prevail, or will societies work together through a sense of collective responsibility? What is the role of government in balancing a strong economy with the interests of its people? Regions and countries – and even cities – will inevitably take a different view on the level of state intervention needed?
Will digital technology inevitably mark the end for large companies? Technology has allowed tiny businesses to tap into a vast reservoir of information, skills and financing that used to be available only to large organisations. Through the use of technology, small has become powerful.
Below are the characteristics of the four worlds:
Yellow world – where humans come first
It will be characterised by social-first and community businesses prosper. Crowdfunded capital flows towards ethical and blameless brands. There is a search for meaning and relevance with a social heart. Artisans, makers and ‘new Worker Guilds’ thrive. Humanness is highly valued.
In the Yellow World, workers and companies seek out greater meaning and relevance in what they do. A strong desire for ‘fairness’ in the distribution of wealth, resources and privilege drives public policy, leading to increased government intervention and consumers and workers voting with their feet.
Red world – where innovation rules
This is characterised by organisations and individuals racing to give consumers what they want. Innovation outpaces regulation. Digital platforms give outsized reach and influence to those with a winning idea. Specialists and niche profitmakers flourish.
New products and business models develop at lightning speed, far more quickly than regulators can control. Technology encourages the creation of powerful, like-minded, cross-border social ‘bubbles’. Businesses innovate to create personalisation and find new ways to serve these niches
Green world – where companies care
This is marked by social responsibility and trust dominating the corporate agenda with concerns about demographic changes, climate and sustainability becoming key drivers of business.
In the Green World, corporate responsibility isn’t just a nice-to-have – it’s a business imperative. Companies are open, collaborative organisations that see themselves as playing an essential role in developing their employees and supporting local communities
Blue world – where corporate is king
Here the big company capitalism rules as organisations continue to grow bigger and individual preferences trump beliefs about social responsibility.
In the Blue World, companies see their size and influence as the best way to protect their prized profit margins against intense competition from their peers and aggressive new market entrants. Corporations grow to such a scale, and exert such influence, that some become more powerful than nation states. Success depends on a productive workforce as large companies compete for the best talent.
