Tech change, geopolitical tensions, demographic shifts, and the green transition
will transform the global labour market.
As we enter 2025, the landscape of work continues to evolve at a rapid pace. Against this backdrop, the World Economic Forum’s Future of Jobs Report 2025 provides a comprehensive analysis of the interconnected trends shaping global and national labour markets. Drawing on insights from over 1,000 employers representing more than 14 million workers across 55 economies, the report identifies the major forces expected to redefine the global labour market by 2030.
According to the report, broadening digital access is predicted to be the most transformative trend, with 60% of employers expecting it to impact their business by 2030. Within this trend, artificial intelligence (AI) and information processing are expected to be the most transformative technologies, with 86% of businesses anticipating their influence to be significant, followed by robotics and automation at 58%. These advancements will create demand for roles in AI, big data, and cybersecurity, with technological literacy emerging as one of the fastest-growing skills. However, for some roles nearly 40% of existing skills could become outdated by 2030, underscoring the urgency of upskilling and reskilling initiatives.
Chart 1: Trends likely to drive business transformation
Source: World Economic Forum, Future of Jobs Survey 2024.
Economic pressures, including the rising cost of living, rank as the second-most transformative trend, with half of businesses highlighting its impact. While inflation is expected to ease, slower economic growth puts the growth potential of some sectors at risk. These challenges are increasing the focus on resilience, creativity, and adaptability as essential workforce attributes.
The green transition is also a major driver of change, with climate-change mitigation and adaptation influencing nearly half of businesses. This trend is driving demand for renewable energy engineers, environmental scientists, and electric vehicle specialists. In Australia, mandatory Environmental, Social and Governance (ESG) reporting requirements being phased in from 2025 will place a larger emphasis on environmental stewardship.
Demographic shifts are reshaping labour markets, with ageing populations in higher-income economies like Australia increasing demand for non-market sector roles, particularly in health care and social assistance.
Geoeconomic fragmentation is expected to transform 34% of businesses over the next five years. Geopolitical tensions and trade restrictions are reshaping global supply chains, prompting many businesses and indeed countries to consider reshoring or ‘friendshoring’ strategies. This trend is driving demand for cybersecurity expertise, strategic thinking, and leadership skills as organisations navigate a more fragmented global economy.
The report found Australia’s business leaders are particularly focused on addressing critical skills shortages, with 65% of employers identifying skills gaps as a key barrier to business transformation, just above the global average of 63%.
Additionally, 45% of Australian employers cite their inability to attract talent to the industry as another major challenge , higher than the global average of 37%. To address the increasing need for skilled talent, 45% of Australian respondents indicated they are hoping for changes to immigration policies to attract more global talent, compared to a global average of 26%.
The report’s findings are in line with The Australian Financial Review’s annual Chanticleer CEO Poll, which reveals that the country’s top chief executives are urging the government to overhaul its skilled migration program to meet labour market demands. This sentiment, however, stands in contrast to the platforms of both major political parties in the lead-up to the election.
As global megatrends unfold, Australia’s labour market will undergo significant transformation over the next five years. Businesses that prioritise innovation, flexibility, and collaboration may be best positioned to navigate these challenges.
This newsletter was distributed on 23rd January 2025. For any questions/comments on this week's newsletter, please contact our authors:
This blog was co-authored by Naasha Kermani, Senior Economist at Deloitte Access Economics
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