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Future of Jobs Report 2025 points to shifting worker training, economic development priorities

January 23, 2025
By: Jerry Coughter

The Future of Jobs Report 2025 by the World Economic Forum (WEF) explores how labor markets are being shaped by emerging technologies, demographic shifts, and environmental pressures. The report analyzes the evolving trends in employment, identifying both the risks of job displacement and the opportunities for job creation in a rapidly changing global economy. It also discusses the need for workers to adapt their skills to remain competitive in an increasingly automated and digital job market. The report primarily focuses on the impact of automation, artificial intelligence (AI), and energy-related technologies on future industry employment patterns.

The report suggests that emerging technologies will lead to both job creation and job displacement, but the scale and nature of these shifts will vary across sectors.

  • Job Creation: Advances in AI and its rapid deployment along with an aging population are among the greatest drivers for job growth in fields such as energy, technology, and healthcare. The sectors with the highest growth potential may not be the first that typically come to mind for most TBED practitioners, but perhaps should be. For instance, AI and automation in agriculture technology will have significant impacts on the training needs of the ag workforce and producers. The healthcare needs of an aging workforce is another area under the radar of many medical, life science and engineering programs.

Job Displacement: Conversely, jobs in sectors such as manufacturing, routine administrative support, and traditional retail are expected to see significant declines globally, according to the WEF, primarily due to automation. Tasks that are repetitive or require lower levels of skill are being increasingly handled by AI and robotics, which will reduce the demand for human labor in these areas. The report finds that demand for specialized skills will grow, particularly in digital literacy, data science, AI, cybersecurity, and advanced manufacturing. As more industries adopt automation and digital technologies, employers will seek proficiency in advanced technical skills. At the same time, the demand for soft skills such as critical thinking, creativity, and emotional intelligence will grow as automation takes over more routine tasks. This trend underscores the need for a holistic skillset combining technical know-how and human-centered capabilities.

Another major finding of the report is the need for reskilling and upskilling. The World Economic Forum estimates that over one-third of workers must learn new skills to remain relevant in the job market by 2025. WEF argues that workers displaced by automation and other technological changes must be provided with accessible training programs to facilitate their transition into new roles. Older workers may face more barriers in adapting to new technologies but bring valuable experience and institutional knowledge. Conversely, younger workers may be more adept at navigating digital tools but may face greater challenges in securing long-term, stable employment unless they acquire the right soft skills.

Based on the WEF findings, states should, over the next five years (2025–2030), prioritize developing a workforce capable of thriving in an increasingly technology-driven economy. By focusing on education and training aligned with emerging industries, reskilling displaced workers, and fostering innovation-centered job creation, states can create a more competitive economy. Fostering collaboration among government, academia, and the private sector will ensure that workforce strategies are responsive and forward-looking.

Among the strategic priorities SSTI recommends states and regions consider are:

  • strengthening education systems and workforce development programs to align with the growing demand for technology and aging-related skills with a particular focus on digital literacy, coding, AI, cybersecurity, and data science;
  • building partnerships with local industries to develop industry-specific STEM training programs and create more apprenticeship and internship programs in emerging fields, particularly for high school graduates and non-degree holders;
  • establishing public-private initiatives for the reskilling and upskilling of workers displaced by automation and AI in sectors such as manufacturing, retail, and administrative support to prepare them for new opportunities in high-demand fields while ensuring economic stability during transitions;
  • expanding access to online, on-demand courses and modular training programs for workers in both urban and rural areas, with flexible learning schedules to accommodate those with existing jobs;
  • providing financial incentives to companies that sponsor worker retraining programs, particularly for those in sectors at high risk of automation;
  • investing in programs to support emerging and established sectors beyond the usual suspects to ensure drivers of your state economy, such as agtech and frontier technologies (e.g., quantum);
  • supporting research and development in universities and technical schools to drive innovation in emerging sectors that will drive the competitiveness of your industrial and business sectors; and
  • creating strategies for economic diversification to reduce dependence on declining industries and foster resilience in the face of technological disruptions and global challenges, such as offering tax breaks or innovation grants to startups and supporting the development of regional economic resilience plans that identify potential vulnerabilities in local economies.

The Future of Jobs Report 2025 underscores the urgency of preparing the workforce for significant changes driven by automation, AI, and aging. State governments, academia, and industry must work together to ensure that workers acquire the necessary skills for the future while supporting those who are displaced by technological advancements. By investing in education, retraining, and inclusive policies, states can help their populations effectively navigate the challenges and opportunities posed by rapid technological change.

This article was prepared by SSTI using Federal funds under award ED22HDQ3070129 from the Economic Development Administration, U.S. Department of Commerce. The statements, findings, conclusions, and recommendations are those of the author(s) and do not necessarily reflect the views of the Economic Development Administration or the U.S. Department of Commerce.

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