Continuing our coverage of the @WEF annual meeting, the focus shifts to the second theme at Davos: "Creating Growth and Jobs for a New Era." Labor markets, globally, are impacted by periods when industries undergo transformations driven by increased adoption of technology, the green transition, and the value chain restructuring. Especially, given the current challenging global macro-economic conditions, global job creation is a critical concern, according to the World Economic Forum, globally 214 million workers are in working poverty, and over 60% of workers are in the informal economy.
IMPACTS OF GLOBAL JOB CREATION
As of August 2023, the U.S. Bureau of Labor Statistics reported that the number of unemployed persons increased by 514,000 to 6.4 million. Increasing the creation of jobs has become a necessity as the rates continue to rise. Aside from reducing poverty and stimulating economic growth, there are many more benefits to be reaped from developing global job creation. Firstly, high levels of unemployment can lead to social unrest and instability. By promoting global job creation, we can enhance social stability by providing individuals with economic security and inclusion in society. Global job creation can help reduce income inequality, both within countries and between them. Access to employment opportunities can promote social mobility and decrease disparities in wealth and income distribution. The UN’s Sustainable Development Goals (SDGs) include several targets related to job creation and decent work for all (SDG 8). Achieving these goals is essential for promoting sustainable economic development and global prosperity.
STIMULATING GLOBAL ACTION
Stimulating global action is a complex and multifaceted challenge that requires coordinated efforts from governments, businesses, and international organizations. Efforts can begin from the very start, outside of businesses, investing in education and skills development, for example, a well educated and skilled workforce is essential for job creation within a globalized economy. Governments should invest in education and training programs to equip people with the skills needed for emerging industries and technologies. In line with the UN’s SDGs, promoting gender equality in the workforce can address issues related to both participation and contribution to job creation, as well as barriers like unequal pay and lack of access to opportunities. Most importantly, collaboration on a global level to address economic changes. International cooperation can lead to policies that promote job creation and reduce any trade tensions that may hinder employment opportunities.
Addressing the necessity for better jobs is what will, in the long term, enable industries to grow and thrive. It is not solely about creating jobs within a single country but also about understanding and addressing the global dynamics that impact employment opportunities worldwide. A balanced approach that considers the interplay of economic, technological, and social factors is essential for promoting sustainable job growth on a global scale.