Will AI slow down hiring?

In its latest research "Future of Jobs", the World Economic Forum predicts disruption for approximately 23 % jobs. Of course, this does not mean that all these jobs will disappear, some will be eliminated and others will appear anew. Crucially, the World Economic Forum expects a total of 14 million job losses over five years, with 83 million job losses and only 69 million new jobs, according to their estimates.

"In general, the rate of change is quite high,” she told CNBC Saadia Zahidi, Director General at the World Economic Forum. The report's findings are largely based on a survey of 803 companies employing a total of 11.3 million workers in 45 different economies around the world.

According to the WEF, the aforementioned disruptions will be influenced by many factors, from technological developments such as artificial intelligence to climate change.

Concerns about technological change negatively affecting jobs have been growing, especially since generative artificial intelligence, especially here we are targeting tools like ChatGPT, entered the general public. The research "Future of Jobs" showed that technology is one of the main factors when we talk about the loss of jobs.

"The biggest cuts are expected in administrative roles and in traditional security, factory and sales roles," the report states, while it is explained that the decline in administrative roles in particular "will mainly be the result of digitization and automation.”

However, the surveyed companies generally do not see technological changes as negative.

"We expect that the impact of most technologies on jobs in the next five years will be net positive. Among the biggest drivers of job growth will be data analytics, climate change and technologies related to environmental management. In addition, encryption and cyber security," they wrote in the report.

Some of the sectors in which the greatest potential for growth could occur. new jobs related to technology are education, agriculture and healthcare, explained Zahidi. "This is not happening because these are dangerous, low-paid and low-skilled jobs all over the world. These are highly qualified jobs with a higher dogiven the value made possible by technology," she said.

Artificial intelligence is described in the report as a "key driver of potential algorithmic replacement" of roles, and nearly 75 % surveyed companies are expected to adopt the technology. Approximately 50 % companies expect jobs to be created as a result, while 25 % expect job losses.

In fact, technology is only sixth on the list of factors leading to net job creation or elimination. "There is also economic growth, which is currently quite slow, then also sustainability and the rise of the green economy, changes in supply chains and changes in a new era of 'deglobalization',” said Zahidi.

The surveyed companies still show that the biggest driver of job creation is the green transition, the adoption of higher environmental, social and management standards. On the other hand, it is the slow economic growth that contributes the most to the loss of jobs.

Other factors that are also likely to cause job losses in the coming years include the effects of the Covid-19 pandemic, supply shortages and the global cost of living crisis.