The rapid integration of generative AI (gen AI) and automation is set to reshape the labour market by 2030, potentially automating up to 30% of current work hours.
McKinsey Global Institute
Key drivers such as net-zero emission goals, an ageing workforce, and economic growth will further influence employment demand. This transformation necessitates significant workforce transitions, with Europe and the U.S. potentially requiring up to 12 million occupational changes. The demand for technological and social-emotional skills will rise, while lower-wage occupations may face reductions.
The Future Workforce Landscape
Amid tightening labour markets and slowing productivity growth, deploying AI and automation will shift labour demand. High-skill professions in STEM and healthcare are expected to grow, while office support, production, and customer service roles will likely decline. This shift will require workers to transition to new roles, especially in Europe, where up to 12 million occupational changes may be needed by 2030.
A McKinsey report highlights that by 2030, Europe could see significant employment shifts driven by AI, an ageing workforce, e-commerce growth, and infrastructure spending. The demand for technological and social-emotional skills will increase, with companies prioritizing retraining over hiring to address skill mismatches. Lower-wage workers will face the greatest challenges, needing to acquire new skills to transition to higher-paying jobs.
Implications for Leadership and Business Strategies
- Workforce Redeployment: Organizations must proactively manage workforce transitions, ensuring employees have the necessary skills for new roles. For example, companies like Siemens invest heavily in reskilling programs to prepare their workforce for future demands.
- Skill Development Focus: A significant focus will be developing technological and soft skills such as critical thinking and creativity. IBM’s initiatives to upskill AI and data analytics employees reflect this trend.
Actionable Recommendations
- Individuals can adapt and thrive by embracing lifelong learning, which involves continuously updating their skills, particularly in technology and social-emotional areas. Online platforms like Coursera and edX offer courses to enhance these skills.
- Businesses and organizations should leverage Trends in Strategic Workforce Planning to assess their future skill needs and develop comprehensive retraining programs. Google’s reskilling programs focus on technical and leadership skills.
- Governments should support Transformations by creating policy initiatives that support skill development and workforce transitions. For example, The European Commission’s Digital Education Action Plan aims to enhance digital skills across the EU.
Integrating AI and automation will significantly alter the employment landscape by 2030. Proactively addressing these changes through skill development and strategic workforce planning will be crucial for organizations and individuals to succeed in the future.
