Download our report, The Future of Jobs in the Era of AI
This report, co-authored by Faethm and the Boston Consulting Group (BCG), combines BCG's world-leading capabilities in strategic workforce planning, with the most advanced analytics available, on the impact of new technologies on jobs and work from Faethm.
The report focuses on three different markets - the USA, Germany and Australia - and takes into account a range of different scenarios from the impact of COVID-19.
The increasing adoption of automation, artificial intelligence (AI), and other technologies suggests that the role of humans in the economy will shrink drastically, wiping out millions of jobs in the process. COVID-19 accelerated this effect in 2020 and will likely boost digitization, and perhaps establish it permanently, in some areas.
However, the real picture is more nuanced: though these technologies will eliminate some jobs, they will create many others. Governments, companies, and individuals all need to understand these shifts when they plan for the future.
Talent shortfalls in key occupations, such as computer and mathematics, for the midrange scenario is set to soar from 571,000 in 2020 to 6.1 million by 2030. The deficit in supply of architecture and engineering workers is also set to rise sharply, from 60,000 in 2020 to 1.3 million in 2030. So even though the country's overall supply of labor is projected to rise, the US will face significant deficits in crucial fields. In fact, the sum of all job family groups with a shortfall is 17.6 million. Technology and automation will also drive people out of work in the US, particularly in office and administrative support, where the surplus of workers will rise from 1.4 million in 2020 to 3.0 million in 2030.
Germany is also projected to have a shortfall of talent in computer and mathematics by 2030: 1.1 million. The next most severely affected job family groups are educational instruction and library occupations (346,000) as well as health care practitioners and technical occupations (254,000). Yet Germany's overall shortfall of talent does not preclude workforce surpluses: productions occupations, for example, are expected to rise from 764,000 in 2020 to 801,000 by 2030. This is a very good example of the shift from jobs with repetitive tasks in production lines to those in the programming and maintenance of production technology - and thus the need for significant reskilling (teaching employees entirely new skills needed for a different job or sector) and upskilling (giving employees upgraded skills to stay relevant in a current occupation).
Australia will experience difficulties in filling jobs in certain sectors, although the overall workforce supply looks less stretched. The greatest shortfall by far exists again in computer and mathematics, where the figure will rise to 333,000 by 2030. The three job family groups with the next most significant shortfalls are management; health care practitioners and technical support; and business and financial operations.
Faethm AI is the world's data source to understand the impact of automation on economies, industries, companies, jobs, tasks, skills and people.
Faethm's SaaS AI platform was launched in 2017 and has grown rapidly to now serve governments and companies in 21 industries and 26 countries from offices in Sydney, London and Austin. A sophisticated knowledge graph and multiple AIs underpin platform modules that deliver data and insights about automation, reskilling and redploying workers for new jobs, economic and investment scenario modelling and COVID-19 resilience and remote working.
In 2018, Faethm was one of the first companies globally to be invited to join the World Economic Forum's Centre for the Fourth Industrial Revolution. Awards since include the Tech Rocketship award for AI from the UK Government's Department for International Trade, and EU HR Excellence award for the Government of Luxembourg Skills Bridge program and Best New Tech Platform from the Australian Computer Society.