By Chinenye Anuforo
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The global labour market is in the middle of a major shift accentuated by technological input that is rapidly revolutionising its functionalities.
From automating repetitive tasks to enabling entirely new forms of work, Artificial Intelligence (AI) is driving unprecedented changes in how people work, learn, and adapt in the 21st century.
The recent Global Labour Market Conference (GLMC) held in Riyadh, Saudi Arabia, brought together stakeholders from around the world to address these pressing issues, highlighting the need for collaborative solutions.
A key theme of the conference was the rapid pace of technological disruption, particularly the rise of artificial intelligence and digital economy. While AI presents the potential for increased productivity and the creation of new jobs, it also poses a threat to existing roles. Experts emphasized the importance of adapting to this change, with individuals needing to upskill and reskill to remain relevant in the evolving job market. The message was clear: those who embrace and learn to use AI will thrive, while those who resist it risk being left behind.
The conference also highlighted the significant demographic shifts occurring globally. While some countries face a shrinking workforce due to aging populations, others, particularly in Africa, are experiencing a surge in young people entering the labour market. This presents both a challenge and an opportunity.
According to Dennis Pennel, Past Executive Director of World Employment Confederation (WEC) on the sideline of GLMC, “Africa has the potential to become a hub for future talent, but realizing this potential requires significant investment in education and skills development.” The need to address the large informal sector in many African economies was also emphasized, with calls for greater regulation and formalization to ensure decent work and economic growth.
Another major topic he discussed was the evolving relationship between employers and employees in the post-COVID world. “The rise of remote work and hybrid models has created a “great mismatch” between employee expectations and company practices”, he stated. Employees increasingly value flexibility in work arrangements, while some employers remain reluctant to fully embrace remote work.
Pennel emphasized the need for a balanced approach, recognizing the benefits of remote work while also preserving the social and collaborative aspects of traditional office environments. He suggested a hybrid model as a potential solution, allowing for a mix of remote and in-office work to maximize both flexibility and collaboration.
Discussing with the Secretary-General of the International Organization of Employers (IOE), Roberto Suárez Santo, he highlighted both the opportunities and challenges presented by this shift, particularly for developing economies in Africa.
The IOE, a century-old organization representing businesses worldwide, emphasized the importance of a tripartite approach involving employers, workers, and governments in navigating these changes. “A key focus is addressing the informal sector, which constitutes a significant portion of many African economies. The IOE is actively seeking innovative solutions to formalize these economies, creating decent jobs for young people. Africa’s youth demographic presents a unique advantage, but harnessing this potential requires equipping young people with the right skills”, Santos stated.
The discussion underscored the critical need for stronger collaboration between the private sector and educational institutions. “Bridging the gap between the skills being taught and the demands of the labor market is essential. This includes not only technical skills but also crucial human skills. A robust institutional framework that fosters this collaboration is vital for creating more jobs, particularly in Africa.”
Continuing, Santos said the digital economy presents immense opportunities for young people, offering access to new markets, increased productivity, and enhanced connectivity. “However, realizing this potential requires addressing key challenges, including infrastructure development, improved internet access, and enhanced educational and vocational training systems. Overcoming resistance to adopting digital technologies, particularly among older generations, is also crucial.
The IOE Secretary emphasized a holistic approach to navigating these changes, focusing on the opportunities rather than succumbing to fear. By addressing the challenges related to skills development, infrastructure, and inclusivity, the global labor market can harness the power of technology to create a more prosperous and equitable future for all.
Also, the World Bank report, “Making Labor Markets Work for the Youth,” released at the conference showed that as countries develop and adopt new technologies, the demand for skilled labor increases. “This means education and training systems need to adapt to provide young people with the relevant technical and soft skills to thrive in this changing landscape.”
The report highlighted a mismatch between the skills employers need and those possessed by young job seekers, emphasizing the need for better quality and more relevant education and training programs.
The report acknowledged the growing importance of digital platforms in connecting workers with global opportunities, particularly in the gig economy. This can provide new avenues for young people to access employment, especially where traditional opportunities are scarce. It suggests that this trend could be particularly beneficial for youth in developing countries.
The report also emphasizes the importance of embracing digital innovation to enhance the effectiveness and reach of youth employment programs. “This could involve using technology for outreach, profiling, training, and job matching services. It suggests that technology can help cut costs and improve efficiency in delivering crucial support to young people.”
While the report only briefly touches on these points, it’s clear that technology is recognized as a significant factor shaping the future of work and impacting youth employment. The report suggested harnessing the power of technology will be essential for addressing the challenges facing young people in the labour market and creating a more inclusive and prosperous future.
Looking ahead, experts are optimistic that technology will continue to reshape the labour market in profound ways. Governments, businesses and workers must work together to ensure that the benefits of technological progress are shared broadly and that no one is left behind. This will require investments in education and training, as well as policies that support workers in transition and ensure that everyone has access to the opportunities of the digital economy.