14 Million Jobs Will Be Slashed Globally By 2027 Owing To AI And ESG Standards: WEF

Written by Katabella Roberson via The Epoch Times

(emphasis ours),

The World Economic Forum has issued a warning.

The employment landscape is expected to change dramatically over the next five year due to the increasing use of artificial intelligence, the transition from fossil fuels, the adoption of environmental, social and governance standards (ESG), and the slower economic growth.

A cameraman stands in front of a logo for the World Economic Forum at Davos in eastern Switzerland on January 20, 2019. (Fabrice Coffrini/AFP through Getty Images).

According to WEF’s ‘The Future of Jobs Report, 2023’, approximately 23 percent of the jobs will change by 2027. Around 69 million new positions will be created, and 83 millions eliminated. This results in a reduction of 14 million or 2 percent of employment.

The Report (

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() surveyed 803 companies employing over 11.3 million people in 45 countries and 27 industry clusters, about macro- and technology trends, their impact on skills and jobs, and the "workforce transformation strategies" that businesses are planning to implement from now until 2027.

The findings of the study are as follows:

The fastest-declining roles will be those in clerical and secretarial jobs, such as bank tellers, ticket clerks and cashiers, data entry clerks and postal service clerks. Administrative and executive secretaries, administrative assistants and secretaries, are also likely to see the most rapid declines over the next five year.

By 2027, the number of jobs will be roughly 26 millions less than today.

Among the tech-related jobs that are expected to grow, there will be an increase in the number of fintech engineers and sustainability specialists.

According to the report, education will see the largest job growth, with 3 million new jobs, followed by agriculture (30%, or 3,000,000 additional jobs), digital commerce and trade (4,000,000 additional jobs).

This illustration was taken on February 23, 2023. It shows a smartphone with the ChatGPT Logo displayed on it. (Dado Ruvic/Reuters)

Renewable Energy and ESG Drive Job Changes

The WEF states that the transition to renewable energies, ESG (Environmental, Social and Governance) standards, which are used to assess the impact of investments on sustainability and ethics, as well as the adoption of new technologies and the localization of supply chain, are the "leading drivers" of job creation, while the economic challenges of high inflation, slow economic growth and supply shortages represent the "greatest threat" to the creation of jobs.

The biggest job creation and destruction impacts come from economic, technological, and environmental trends. Businesses predict that among the macro-trends listed, investments to facilitate green transition of business, the wider application of ESG Standards, and the localization of supply chains will have the greatest net job creation effect. However, this growth is offset by some job displacement.

The Republican Congress has repeatedly criticized the U.S.

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Companies that adopt ESG standards run the risk of reducing investment returns, and stifling economic growth. This could have a ripple effect on the entire economy.

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Net job creation is also a high priority for climate change adaptation, and demographic dividends in emerging and developing economies.

The WEF report continues. The WEF report continues: 'Technological advances through adoption of new and emerging technologies, and greater digital access, are expected to drive employment growth in over half of the companies surveyed, offsetting expected job displacements in a fifth of companies.

The report cites an increase in consumer costs as a factor that is likely to pose the biggest threat to the employment market over the next five-year period and cause significant job displacement.

The Engineered Arts Ameca robot with artificial intelligence is shown at the Consumer Electronics Show in Las Vegas on January 5, 2022. Patrick T. Fallon/AFP via Getty Images

Businesses 'Need To Be Prepared for Disruptions'

The WEF also found that respondents rated the COVID-19 pandemic impact, increasing geopolitical divides, and demographic dividends as less important drivers of business development.

Goldman Sachs economists released a report shortly after the latest one.

Forecast

AI has been used in a blitz in the last few years, and it is now being considered for two-thirds (or more) of all occupations in America. This has led to concerns about its possible risks, both to society and humankind.

The economists noted, however, that the use of this technology in business and in society could result in an increase in global GDP of almost $7 trillion due to factors such as increased productivity and manufacturing.

According to the WEF Report, almost 75 percent of the companies surveyed intend to adopt AI and big data within the next five year period. Around 50 percent of the firms expect that this will result in job growth, while 25 percent anticipate job loss.

The report also found that, according to organizations, approximately 34 percent of business-related tasks today are performed by machines. The remaining 66 percent is performed by people.

"The new findings of the Future of Jobs Report are a call to action for all stakeholders on the labor market," said Sander van ’t Noordende CEO of Randstad, a human resource consulting company.

The acceleration of digitalization, AI and automation is creating enormous opportunities for the global work force, but employers and governments need to be prepared for the disruptions that lie ahead. He added that by offering more skilling resources and connecting talent more efficiently to jobs and advocating a well-regulated labour market, we could protect and prepare workers for an equitable and specialized future of work.