The World Economic Forum released their latest report The Future of Jobs with some fascinating findings. This week we tackle the section on labor (or labour) churn.
Here’s an excerpt from the executive summary:
“Employers anticipate a structural labour market churn of 23% of jobs in the next five years. This
can be interpreted as an aggregate measure of disruption, constituting a mixture of emerging jobs added and declining jobs eliminated. Respondents to this year’s Future of Jobs Survey expect a higher-than-average churn in the Supply Chain and Transportation and Media, Entertainment and Sports industries, and lower-than-average churn in Manufacturing as well as Retail and Wholesale of Consumer Goods. Of the 673 million jobs reflected in the dataset in this report, respondents expect structural job growth of 69 million jobs and a decline of 83 million jobs. This corresponds to a net decrease of 14 million jobs, or 2% of current employment.”
Download the full report, or visit the World Economic Forum website for more information.
Future of Jobs Report – 23% Churn!
This projection took our breath away. 23% churn is a staggering number. We’ve all seen headlines that imply literally everyone in the workforce is looking for a new job. “This year, more workers are seeking new jobs than in 2022: More than half (56 percent) of the workforce is likely to look for a new job in the next 12 months, up from 51 percent in 2022, according to Bankrate’s 2023 job seeker survey.”
But the actual number of employees who leave is far less.
The average employee turnover per location in 2022 is 9.3%. The maximum turnover rate is 13.67%, while the minimum is 6.94%.
Employee turnover costs real dollars in a number of meaningful was including: Recruitment and Onboarding Costs, Productivity Loss, Decreased Morale and Engagement, Customer Impact… the list goes on.
The World Economic Report is forecasting 23% churn in a structural way meaning that 23% of the jobs will be different. Employees will need different skills than they have today.
Is there any company truly ready for this? We think not.
To read more about the skills need for the Future of Work, Download the full report now!
Or if you are ready to learn more about Jobspeaker and how we can help ensure you hire employees with the right skills, schedule a demo today.
