4 ways to help workers transition to the digital economy | مركز سمت للدراسات

4 ways to help workers transition to the digital economy

Date & time : Sunday, 3 November 2024

Simon Torkington

Advanced technology including AI and machine learning is changing the world at an unprecedented pace. As these changes accelerate, the future of work is shifting fundamentally and the ability to transition into new jobs is more critical than ever.

The World Economic Forum’s own research shows that 23% of all jobs will be changed by technology and automation by 2027, with 69 million new job roles expected to be created and 83 million job roles expected to be displaced.

Almost a quarter of all workers face the challenge of ensuring they have the relevant skills to thrive in an increasingly digital global economy.

To help workers and businesses adapt to the jobs of tomorrow, the World Economic Forum’s Unlocking Opportunity report outlines four key pillars to smooth the pathway into successful employment in the digital economy.

Here’s a look at the framework that can guide these transitions.

1. Reskilling and upskilling for new opportunities

The days of learning one trade for a lifetime are gone. To stay relevant in today’s job market, workers need to embrace continuous learning and reskilling. With 44% of job skills expected to change within five years, it’s essential that both individuals and companies invest in lifelong learning.

One example of this is the Randstad Boot Camp Training programme in Japan. This initiative provides intensive training for workers from non-technical fields, enabling them to transition into high-demand digital roles. Through courses blending hands-on experience with digital skills, participants are prepared to enter roles in IT, bridging significant skills gaps and supporting career growth.

2. Improving employee-employer matching

As the job market evolves, so must the way workers and employers connect. Flexible working arrangements and alternative employment models, such as remote work and gig jobs, allow companies to access a broader talent pool, while workers can find roles that fit their needs.

In Indonesia, the government’s Sekolah Menengah Kejuruan – Pusat Keunggulan (SMK-PK) programme is revitalizing the country’s vocational schools by better aligning skills training with market demand. By fostering close relationships between industries and educators, students are gaining relevant skills and finding smoother transitions into jobs that are in high demand. This focus on improving the match between workers and employers is helping to reduce unemployment and ensuring better job satisfaction.

3. Worker safety nets

Job transitions aren’t always seamless, which is why strong worker protections are essential. Governments and businesses must work together to create safety nets that can ease the burden of job displacement. These protections could take the form of unemployment insurance, subsidized severance packages, or labour laws that protect against unfair dismissal.

A strong example comes from Germany, where a proactive approach to the energy transition ensured that workers displaced from the coal industry received support. Through reskilling programmes and assistance in finding new employment, Germany managed to soften the impact of large-scale industry shifts, giving workers the chance to move into stable, future-focused jobs.

4. Multistakeholder collaboration to break through industry barriers

Some of the most effective workforce transitions happen when industries collaborate. By pooling resources, sharing training programmes and creating cross-industry partnerships, companies can ensure their workers are prepared for new roles, even in different fields.

In South Africa, the Skills Initiative for Africa (SIFA) has brought together governments, educational institutions and industries to develop technical skills for young workers. This multistakeholder approach is not only helping to combat unemployment, but it’s also creating a more adaptable workforce that’s ready to thrive in a changing economy.

The Forum’s Unlocking Opportunity framework provides a clear path forward for both workers and employers to navigate the changing world of work.

By focusing on continuous learning, improving job matching, ensuring strong worker protections and fostering collaboration, we can build a resilient workforce ready to meet the demands of the future.

As industries continue to evolve, these strategies will be crucial in helping workers secure stable, rewarding roles in growth sectors.

Source: World Economic Forum

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