Automation, digitisation and advances in artificial intelligence are transforming the nature of work, necessitating a shift in workforce skills. New technologies will automate 50% of tasks currently performed by humans, leading to a demand for new skills for the workforce of the future. Physical and manual skills will be less in demand, while technological, social and emotional, and higher cognitive skills will become more important.

The demand for technological skills, such as programming and digital design, will grow by 55% by 2030, leading to a significant increase in jobs requiring these skills. Social and emotional skills, including leadership and managing others, will also see a 24% increase in demand. Higher cognitive skills, such as critical thinking and information processing, will remain crucial, though the demand for these skills will grow at a slower pace.

Despite this shift, the demand for basic cognitive skills and physical and manual skills will not disappear entirely. However, the share of hours worked using these skills will decline by 14% and 15% respectively. This transition will require substantial investment in skill development and education to prepare workers for the future. The task is not solely the responsibility of the public sector; businesses also need to invest in their employees’ skills development to remain competitive.

The shift in skills will also have significant socio-economic implications. Without proper planning and investment, income inequality could increase, leading to social unrest. Therefore, it is crucial to ensure that the workforce is prepared for these changes to maintain social stability and economic growth.

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