After the first week back at work, we’ve already heard about so many changes. The hybrid-remote-return-to-office topic remains hot, especially with some big giants enforcing RTO mandates this week. As our Future Work alumnus Brian Elliott aptly said, ​“Leaders who are focusing on how people work, not where, aren't just doing it because their employees want flexibility.”​ I still believe in that, but it’s worth considering if there are hidden perspectives we need to hear—both from leadership and employees.

We’re hosting an upcoming event, ​The Great Debate​, on 29th January, where this exact topic will be explored. Let me know if you’d like to be part of this important discussion.

On another note, this week’s highlight is the Future of Jobs Report 2025 from the World Economic Forum. It’s fascinating to see how workplaces are evolving and how much has shifted since the last report two years ago. The report dives into key forces like AI and Big Data, Upskilling and Continuous Learning, and Adoption. Let’s unpack these findings and explore what they mean for HR together!

WORLD ECONOMIC FORUM: The Future of Jobs Report 2025. What does it mean to HR?

The Future of Jobs Report 2025, published by the World Economic Forum, provides a comprehensive analysis of the evolving landscape of work as we approach the end of the decade. This edition explores the major shifts reshaping industries and jobs, driven by advancements in generative AI and broader technological innovation. It highlights five key forces transforming the global labor market:

• Technological change (AI/automation reshaping jobs)
• Economic uncertainty (market-driven workforce adjustments)
• Geoeconomic fragmentation (trade and labor mobility shifts)
• Green transition (demand for sustainable practices/jobs)
• Demographic shifts (aging populations and workforce changes)

Macrotrends Shaping Business Transformation

• Key macro trends driving business transformation include digital transformation (60% of employers view it as pivotal), the rising cost of living, higher prices, and inflation (50%), and sustainability efforts as prioritizing carbon reduction (47%).
• From 2025 to 2030, 86% of employers expect AI and information processing to drive transformation, while 58% anticipate significant impacts from robots and autonomous systems. 41% see advancements in energy technologies as key.

Job Market Projection

• The global labor market is projected to see a net loss of 14 million jobs by 2030, with 69 million jobs created and 83 million displaced. Growth is expected in technology, healthcare, and green jobs, with roles like AI specialists, data analysts, and sustainability experts thriving. Meanwhile, jobs in manufacturing, administration, and roles like cashiers and assembly workers are set to decline due to automation.
• The report stresses the need for a balanced human-machine collaboration, urging businesses to invest in reskilling and upskilling to prepare workers for a tech-driven future.

Skills in Demand

• The workforce is rapidly evolving, with surging demand for skills like AI and Big Data, driven by data strategies and automation. Networks and Cybersecurity are critical as organizations prioritize digital security, while Technological Literacy is now essential across all sectors. Other growing skills include creative thinking for innovative problem-solving, resilience and flexibility to adapt to rapid changes, and curiosity and lifelong learning to stay competitive in a fast-paced job market.
• The ten core skills for 2025 emphasize key competencies to meet evolving labor demands. These include analytical thinking for data-driven decisions, resilience and flexibility to adapt to change, and leadership to drive collaboration. Creative thinking fosters innovation, while motivation, self-awareness, and technological literacy enhance personal and technical proficiency. Interpersonal skills like empathy and active listening improve communication, and curiosity and lifelong learning support ongoing development. Talent management strengthens workforce growth, while a strong service orientation ensures customer satisfaction.
• Stable skills such as dependability, attention to detail, and global citizenship remain relevant but may see slight declines. Meanwhile, automation is diminishing the need for skills like manual dexterity, endurance, and quality control, reflecting the shift toward mechanization.
• To address these shifting demands, 86% of employers plan to self-fund workforce training, 27% will leverage free resources, and 20% seek government funding. Training investments are aimed at boosting productivity (77%), improving competitiveness (70%), and retaining skilled talent (65%). Employers also prioritize transitioning employees into evolving roles (52%), enhancing talent mobility (48%), and attracting diverse talent (19%).

Workforce Development Strategies and AI Adoption

• Barriers to transformation in the workforce highlight critical challenges, with 66% of employers citing skills gaps in the labor market as a key issue, followed by 46% pointing to resistance to change within organizational culture. Regulatory frameworks (40%), economic uncertainty (34%), and geopolitical factors (30%) further complicate efforts.
• To address talent availability, businesses are focusing on supporting employee health and well-being (37%) and providing effective reskilling and upskilling opportunities (27%). Improvements in talent progression and promotion processes (26%), offering higher wages (25%), and tapping into diverse talent pools (24%) are also prioritized as strategies to build a resilient and adaptable workforce.
• Workforce strategies are evolving rapidly, with 85% of employers prioritizing upskilling to meet the demands of a tech-driven environment, while 73% focus on automating tasks and 63% aim to augment human capabilities with technology.
• Barriers such as skill gaps (63%) and resistance to change complicate implementation. AI adoption is driving reskilling (77%) and new hires (62%), with 49% of employers shifting business models to capitalize on AI opportunities. However, 41% expect workforce downsizing due to AI, highlighting the need for careful planning. Challenges to AI adoption include skill shortages (50%), leadership vision (43%), and high costs (29%).

⁉️ What's Your Take?

Below are my recommendations for HR priorities after reading the report. What are your thoughts?

1. Upskilling and Reskilling: Prioritize comprehensive programs to address skills gaps, particularly in AI and technology.
2. Diversity and Inclusion: Implement strategies to tap into diverse talent pools and integrate DEI into recruitment and retention practices.
3. Employee Well-being: Focus on enhancing employee health and well-being to attract and retain talent.
4. Flexible Work Arrangements: Develop policies that support remote work and accommodations for employees with caregiving responsibilities.
5. Talent Progression: Improve progression and promotion processes, ensuring clear advancement pathways.
6. Cultural Transformation: Foster a culture of change, innovation, and adaptability to overcome resistance.
7. Technology Integration: Invest in technology that enhances workforce capabilities, particularly AI and emerging technologies.
8. Data-Driven Decision Making: Use data analytics to inform HR strategies, focusing on employee needs and performance metrics.
9. Leadership Development: Enhance programs to ensure leaders can effectively guide teams through change.
10. Employee Engagement and Retention: Develop strategies to improve engagement and align practices with employee expectations.

Read the FULL Report HERE →