How businesses and policymakers can address the future demand for digital skills in the labor market

The nature of work and traditional jobs is changing as a result of digital technologies like cloud computing, artificial intelligence, and the internet of things.

The world of work is fundamentally changing as a result of digital innovations like cloud computing, artificial intelligence (AI), and the internet of things (IoT).

The future jobs we will perform are being influenced by the digitization of business in terms of how and where we will work. Automation will completely replace some traditional jobs, while AI and machine learning will be used in other cases to increase human productivity and insight.

However, there is already a tons of evidence demonstrating how digital technology is changing the workplace, even though some jobs of the future may not yet exist.

A new report from the Organization for Economic Co-operation and Development and Randstad is titled Digital Skills Opportunity for All (OECD). In order to identify the jobs and skills that are most in demand on the labor market, it examines more than 400 million job postings that have been published online in the last ten years.

The need for digital expertise is growing.

In the 10 countries covered by the report, jobs requiring digital skills make up 6-12% of all online job postings, and this share is steadily rising.

For example, a quick analysis of the data reveals that between 2018 and 2021, job postings for digital roles in the US increased by 24%, driven primarily by a 116% increase in postings for data engineers.

The shift to a digital workplace offers both employers and employees a wealth of opportunities, but there are also clear obstacles to face and overcome.

Business executives will have to compete fiercely to attract and keep the best talent. It will be crucial to monitor changes in the labor market that are related to digital skills and technology.

Governments and regulators, on the other hand, must invest in helping the workforce acquire the digital skills necessary to prosper in the future labour markets by identifying the most crucial skills and the jobs that need them. To ensure that a workforce that is prepared for the digital age emerges from schools, colleges, and universities, education systems will also need to adapt.

Digital skills will be important in at least five areas, according to the analysis of online job postings:

1. Cutting-edge data analysis

More frequently than ten years ago, advanced data skills like machine learning and big data analytics are mentioned in job postings and listed as a requirement in a much wider range of job and work contexts. These skills are in high demand and are spreading throughout the labor market 15.5 times faster than the average skill in the US, across a variety of industries and occupations.

2. Online safety

The number of job postings for cybersecurity experts has increased as the threat of cyberattacks has grown. However, expertise in cybersecurity is necessary for a variety of jobs, from analyst positions to managerial ones.

3. Programming The widespread demand for programming skills is a result of business adoption of the cloud and other digital technologies. Increasing demand is being observed across the employment spectrum for particular scripting languages like JavaScript or Python as well as software development principles.

4. IoT and automation

The demand for expertise in automation and IoT is being driven by manufacturers of wearable technology and smart home products. As IoT adoption spreads into new business sectors, there will be a continuing increase in demand for knowledge of computer-aided engineering software.

5. Knowledge of digital sales and business

Although the demand for social media skills has been growing quickly, many in-demand digital jobs also require other digital skills, such as web analytics or online marketing.

The way we employ people right now needs to change.

Businesses, employers, and employees will all need to make significant investments in reskilling initiatives and adjustments to work practices if they want to succeed in the AI and IoT era. Employees will need to change from declining roles to new, thriving positions at the heart of the digital workplace.

The mapping of declining and emerging roles, as well as the transition of workers from the former to the latter, will be a crucial component of the transition process. The new report uses the specific data found in online job postings to forge a path from declining occupations to others that are flourishing in the labour market.

For instance, the skills necessary to transition between them are highlighted in the chart below.

Although some career paths may be simpler than others, organizations must develop reskilling and upskilling strategies that cover the entire career of an employee due to the rapid pace of technological change in the workplace.

Individuals will need support from policymakers, educators, and businesses as they develop their skills and, as needed, make career transitions.

For instance, micro-credentials and short, focused training paths can offer adults learning opportunities that are specifically suited to their requirements. It's critical to be aware of the time and financial obstacles that many people may experience when retraining.

Companies must provide more to employees than just a desk and a paycheck in order to attract and keep talent. Today's workers demand a more all-encompassing career experience, one that includes meaningful work consistent with their values. A schedule that enables them to maintain their health and spend time with their loved ones is also something they demand.

The pandemic-era remote working practises, made possible by digital technology, will continue to develop. Companies must make sure they develop and keep up with these new trends in a labor market where digital skills are becoming more and more important.