Equity Amidst Transition Is The Need For Future of Work:Experts At Davos

Nearly 40 million full-time work hours have been lost in middle-income countries, according to a data shared by Geoff Cutmore, English Financial Journalist on CNBC, who was moderating a panel of significant dignitaries at the World Economic Forum 2023 on ‘Future of Work’. 

The year 2023 is again an important consecutive year in terms of revival and revitalisation of the different industries after the pandemic, especially the service sector across the globe which is facing layoffs and quitting on a large scale.

Sharing views on the behalf of International Labour Organisation (ILO), Gilbert Houngbo, Director General of ILO said, “Globally, we know we are picking up, we have a shortage of labour. The low-income countries and emerging economies are still recovering from Covid. In the beginning of 2022 the recovery was going well but the impact of multiple crises like the war in Ukraine and inflation wiped it out”

Houngbo also added that compared to the Q4 of 2019 to Q3 of 2022, we have lost 1.5 per cent of the working hours.  He informed that the projection of 2023 for global employment growth is just 1 per cent and surprisingly this rate could be expanded up to 3 per cent in the area of Africa and the Middle-East. He further went on to add that Covid also impacted the pace of formalisation rate of informal sector across the globe. 

Talking about the recent dissatisfaction among the employees working in the United States of America, which is one of the largest employment hubs for people across the globe, the United States Secretary of Labour Marty Walsh informed that the current unemployment rate in America is 3.5 per cent and the labour participation rate is roughly 62 to 63 per cent.

Walsh said, “We are doubling the apprenticeship, we are doubling down on workforce job training, we are making sure of the system which is out there recruiting people in the new industries, we are working with the mayors and governors and local government.”

Walsh mentioned that his government is more focused on apprenticeship so that people working in low-wage jobs can be part of green jobs. 

Moving forward to the solution to the low-income jobs in the countries, Executive Director of the International Trade Centre Pamela Coke-Hamilton said that this can be done by making the kind of investment in new technology, digital upskilling and sustainable green growth. 

Pamela raised a significant issue of equity in the age of green transition. She mentioned, "we are talking of green growth and EVs, the countries which are providing us with the materials and components to establish this new trend are in serious trouble." 

She added, “We have to make sure that green growth will not make these developing countries worst after the pandemic.” 

Later, she also talked about the issue of connectivity of developing countries in terms of the digital world and said, “Only 35 per cent of the developing world is connected while it is only 18 per cent in Africa.” 

Talking from the world of corporate and job providers, Chief Executive officer of Telefónica José María Álvarez-Pallete López, said that the changes that will take place in the next five years have already taken place in midst of the pandemic and technology is playing a crucial role in it.

Álvarez said, “Technology is creating inequality and this way of technology is pushing away millions of jobs and if we will not handle this transition in the right way, this would further create social unrest which is the most dangerous for society.” 

He also pointed out that Public Private Partnership (PPP) model is essential in implementing this transition. “Economy, Environment and Society are the three pillars and all of these three need to run side by side then only we can achieve what we want”, said, Houngbo while concluding his statement.