“The illiterate of the 21st century will not be those who cannot read and write but those who cannot learn, unlearn & unlearn” Alvin Toffler
For a “natural born technically challenged” HR person like me, to be asked to speak about AI’s impact on job landscape and the HR profession (Friend or Foe) is an irony. In my more than three decades of professional experience, the closest I’ve been a “techi” is how my computing tools are voice activated. (“Paki print….paki research, pakigawa, paki suyo and so many pakisuyo”).
When I transitioned into the BPO industry, I had to find my way through the intricacies of providing efficient support services to our clients & principals without the usual support & help from a battery of clerks, EAs or Assistants I had at my disposal. Since the goal is help customers become more focused on their core businesses & be more profitable, this is where AI conveniently comes in.
Last March 21, 2025 (Friday), I had the opportunity to knowledge share at the 8th National HR Summit held at the Clark Freeport Zone as one of their Plenary Speakers. More than 200 HR practioners from the National Capital Region, North of Luzon, Clark area and Metro Cebu converged to listen and learn. My assigned topic….Artificial Intelligence, HR’s Friend or Foe.
To prepare for this talk, aside from reflecting on my personal journey in using emerging technologies, I also read the “Future of Jobs Report” of the World Economic Forum on the emerging transformation of the jobs landscape in the next five (5) years or 2025-2030.
The insightful data came from 1,000 employers, that had more or less 14M workers, belonging to 22 Industry clusters & representing 55 economies. As I read through the report, it dawned on me that the jobs landscape from 2025 – 2030 will be real disruptive, scary it may seem but whoever is not ready will surely lose and those willing to adapt to the upcoming changes will win. The winners are companies that are able to compete and employees who are able to able to their keep jobs. HR professionals will be right smack in the eye of the storm.
The initial conclusion is jobs will truly transform. Of the 1,000 employers asked, 600 stated that they anticipate that the transformation of jobs to happen in the next five (5) years or from 2025 – 2030 will be due mainly to emerging technologies (Artificial Intelligence, robotics, automation etc). This shows that companies have recognized the role of emerging technologies in business transactions & related activities.
Half or 500 said the biggest impact will be due to inflation. This sentiment is indicative of the uncertainty of business leaders on the stability of market forces.
It is expected that level of prices for goods & services will drastically rise which disrupts economic stability like no other.
Some companies (470) mentioned “Green Transition” will greatly impact the jobs where there is expected growth in renewable energy sector and its commercial utilization such as electric cars, solar energy etc. Companies either have to comply with laws or have decided to make this part of their business strategy by contributing to environmental protection by buying carbon credits. The Paris Agreement and all its environmental goals is a business consideration & 2030 is definitely just around the corner. Buying carbon credits which is another path for companies is also becoming business model.
The same report also states that a little more than 400 employers surveyed during the World Economic Forum said that the expected economic slowdown will transform jobs because business have to cope with this unfavorable situation in order to survive.
Interestingly, only 387 companies said the demographic shift of the labor force will transform jobs too. Demographic shift is when the current work force starts to age but there will be less joining the labor market to replace them due to declining populations or skills. This forces the retirement age to be extended or the legal age to start working will be adjusted earlier. The phenomenal population decline among highly developed countries is also something that will be of big impact. Not only will it impact the time it takes to fill up jobs but the possibility of jobs being merged is a rational solution. This scenario does not only extend the retirement age but also stretches the job responsibilities of workers just to cope with the ensuing labor shortage.
Since this report was released late last year, a little earlier or coinciding with the US Presidential elections, Geo Ecopolitical reasons ranked the lowest, which was mentioned by a mere 350 global employers saying this will transform jobs. If this were conducted today, I personally feel that the result will be interesting because the seeming “trade war” & tariffs plus shifting alliances is already making a dent. It is all over the news that traditionally bullish stock markets are taking a hit, tourism is declining and the seeming distrust and rhetoric between traditional trade partners & market forces is becoming a trade intramural.
When looking for talent, the rise in importance of technology related skills is apparent but based on the report, it states as well that this skill should still be complemented with creative thinking, resilience, flexibility & agility, along with curiosity and lifelong learning.
Parallel to this, there will be a decrease in importance for manual dexterity, endurance & precision means a notable decline in demand for such skills in the next five years. The manufacturing sector workers will take much of the hit because manual jobs will be automated and robotics will be fully utilized.
Additionally, the report stated that 600 of the 1,000 companies will transform their companies or operations. Of the 600 that will transform in the next 5 years, 360 stated that their transformation is due to Artificial Intelligence (AI). 348 said robotics & automation will be their direction to remain competitive. 246 will be focused on energy generation and an equal number will transform due to storage & distribution as part of their transformation.
In the next five (5) years, the creation of new jobs equivalent to 14% of today’s total employment or 170 million jobs.
Frontline jobs will grow. Health & Care services and technology related jobs will continue to grow at a stable but continuous rate. Seems that the best degree to take right now would be medical related, engineering & IT related. Ventures into healthcare & laboratories, hospital & homecare, delivery services and technology related businesses are good to invest time & money in. Vocational skills might present a decline in job opportunities as AI, automation & robotics use will be widely implemented.
Based on the same report however, 92 million of current jobs will be displaced. Most impacted will be clerical & secretarial workers, data entry clerks, bank tellers, postal service, researchers etc. Displaced does not necessarily mean that these jobs will be automatically be but rather, I would like to believe that most will be transitioned to other roles similar, merged with other jobs or trained on other skills.
The net jobs growth from 2025-2030, 78 million new jobs created which is 7% of total employment. However, 92 million of current jobs will be displaced.
Looks worrisome not only from an HR perspective but to an employee specially. The good news it seems based on my understanding of the report, companies will not immediately opt to separate employees that are not adept with the emerging technologies.
850 out of the 1000 employers said they will definitely upskill their staff to make them more competitive though 700 said their immediate action would be to hire for new skills needed if they cannot find any internal suitable candidates.
Not to be surprised is 667 of the employers said they will also hire for specific AI skills which is an indication of their direction towards use of emerging technologies.
Fifty (50) percent or 500 indicated that they will seek to transition their current staff. Transitioning means either helping employees gains new skills to retain their jobs, or move them to another role which is better than replacement.
Note that the same number of employers said that they will just re-orient their businesses towards utilizing more AI. Consequently, this will mean a reduction of workforce to essentials. Employees whose jobs or skills can be taken over if not done better by Artificial Intelligence and work apps will sure be negatively impacted.
Sadly, 40% of the surveyed employers said that on the onset that irrelevant job be removed or merged with other functions. Though only 380 said they will only remove employees with outdated skills.
The changing jobs landscape will see AI & big data top the list of fastest-growing skills demanded by the job market, followed closely by networks & cyber security & technology literacy. A lot of opportunities will revolve around these technical skills but at the same time, the most sought after are traits like analytical thinking, resilience, flexibility & agility, along with leadership & social influence.
Though is still a very gloomy prospect, the job landscape in the next five (5) years will be interesting because while there are a lot of factors that will impact businesses and job opportunities either positively or negatively, there is still time to act. Companies & employees that will be left out struggling and barely surviving if they do not try to learn, re learn & unlearn.
GOOD MORNING HARDWORKING PEOPLE!For comments & suggestions, you may email author [email protected] & follow in Facebook Herrie Raymond Rivera.