Demand for Workforce Skills

  • Machines are getting smarter
  • High productivity, GDP growth, performance, propsperity
  • People will nee to be more social/emotional - soft skills are more important
  • Basic cognitive/physical/manual skills will decline
  • “creativity, critical thinking, decision making, and complex information processing, will grow through 2030, by 19 percent in the United States and by 14 percent in Europe, from sizable bases today.”
  • Data input tasks will be in the decline, machines can do these

Graphic on Skillset

Shifting skill requirements in five sectors

  • Banking/insurance - number crunching jobs will decline
  • Social/emootional skills will still be needed for customer interaction
  • Energy/mining - Manual work will be displaced as machines can easily run diagnostics, collect data, read metrics
  • Healthcare - office support staff will decrease, care providers will increase
  • Manufacturing - physical labor decrease, more leadership skills needed
  • Retail - predictable manual jobs like driving/packing/stocking will decline as they become productive
    • Sensors, robots, automated cashiers, etc.
    • Decrease human interaction

Mindshift

  • It’ll be a huage mind-set shift for companies
  • The way they work will be must faster and more dynamic
  • Might be a “new-collar” job that operates in between white and blue
    • People who don’t get cut will need to operate at a higher level because a lot of their tasks will be sped up
  • “Gig”/sharing economy will increase

Future Workforce

  • Retraining - in-house vs. outsourced learning opportunieis
  • Redeployment - unbundling/rebundling tasks
  • Hiring - sometimes less expensive than retraining
    • Europe is much more willing to retrain
    • US 35% of respondants said they would simply rehire or mainly rehire
    • Europe: 7% would rehire
  • Contracting - bring in contractors for very specific knowledge set for noncore/low-skill roles
    • Not for “high-skill talent”
  • Releasing - reducing work hours of some employees
    • Could result in a loss of culture, satisfaction

Sources

McKinsey

Posted in Life with Internship, Reflection