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1.4 million US jobs to be disrupted by technology by 2026; reskilling vital

January 23, 2018

A new report released by the World Economic Forum found 1.4 million US jobs will be disrupted by technology and other factors between now and 2026, and 57% of those jobs belong to women. However, 95% of workers most at risk would find good-quality, higher wage work if they had adequate reskilling.

The report came out Monday before the start today of the World Economic Forum’s 48th annual meeting in Davos-Klosters, Switzerland, with more than 3,000 global leaders. Separately, ManpowerGroup (NYSE: MAN) Chairman and CEO Jonas Prising was also scheduled to speak at the event today on a panel with Will.i.am, an entrepreneur as well as founder and frontman of hip hop group The Black Eyed Peas.

The report on job disruption and reskilling, titled, “Towards a Reskilling Revolution: A Future of Jobs for All,” analyzed more than 1,000 job types and was produced in collaboration with The Boston Consulting Group.

It noted only 2% of workers would have an optimal opportunity to transition to new jobs while 16% would have none at all. However, at-risk workers who retrain for an average of two years could receive an average annual salary increase of $15,000, and businesses would be able to find talent for jobs that may otherwise remain unfilled.

“The only limiting factor in a world of opportunities for people is the willingness of leaders to make investments in re-skilling that will bridge workers onto new jobs,” said Klaus Schwab, founder and executive chairman of the World Economic Forum. “This report shows that this investment has very high returns for businesses as well as economies — and ensures that workers find a purpose in their lives.”

People who will do best in transitions, according to the report, are those with transferrable skills such as collaboration and critical thinking.

Separately at the annual meeting today, Prising and Will.i.am were scheduled to speak on a panel titled, “From C-Suite to Digital Suite, How to lead Through Digital Transformation.” Others on the panel were to include Dow Chairman and CEO Andrew Liveris, Cognizant CEO Francisco D’Souza, KPMG Head of People Susan Ferrier, IBM Watson Chief David Kenney and WPP CEO Sir Martin Sorrell. Financial Times US Managing Editor Gillian Tett was slated to moderate.

Almost nine out of 10 HR leaders do not believe they have the leadership talent to drive success in the digital era, according to ManpowerGroup data. Leaders need to lead differently to stay relevant.

“What got us here won’t get us there. Current and future leaders in the digital age must be open to change and ready to take calculated risks,” Prising said in a statement released before the panel. “The good news is leading through digital transformation does not mean a complete replacement of the makeup of strong leadership. Instead the 80/20 rule applies.”

Prising continued: “Foundational leadership skills like endurance and adaptability continue to be critical. Yet in the digital age, effective leaders must also nurture the additional 20% — unleashing talent, daring to lead, and at times failing, fast; all to accelerate performance. We are pleased to be joined by such diverse and expert speakers to discuss how to keep businesses running smoothly with one hand, while preparing for a different and uncertain future with the other.”

The World Economic Forum’s annual meeting runs through Friday.