Jobs for the Future Claudia Pompa – Private Sector and Markets Team October 2014

We are currently preparing students for jobs that don’t yet exist…using technologies that haven’t yet been invented…in order to solve problems we don’t even know are problems yet Richard Riley, Secretary of Education under Clinton

The great mismatch… 4 75 million young people worldwide are out of work 1 billion workers without secondary education are expected to be part of the labour force by 2020 Global shortage of 38 to 40 million highly skilled workers – needed to raise productivity and drive growth – by 2020 The inability to secure talent with the right skills is not only a major constraint to businesses’ bottom lines, but also prevents firms from scaling up operations, meeting demand in new locations and launching new products and services.

The question…. The underlying question: What skills will be needed for the jobs of the future and how do we make sure individuals are trained in these skills 5

Trends that will shape the future of jobs Global drivers Demographic change and migration –High mobility of labour –Multi-generational workforce –Growing role of women in the workforce Global integration –Emerging economies playing globally, increasing competition –Development of new business models –The shrinking middle 6

Trends that will shape the future of jobs Global drivers Technological innovation –Digitalisation of production –Big data –Digital economy Shift to Asia Collaboration and cross-disciplinary –Convergence of disciplines –Collaborative business models – crowdsourcing economy? Scarcity of natural resources 7

Trends that will shape the future of jobs Regional drivers Agriculture – Has great potential but…. Shit to Asia – Yes…but away from China Green growth – Clear opportunities to benefit from first comer advantages Trade agreements – ASEAN Economic Community – Trans Pacific Partnership – Economic Community of West African States (ECOWAS) Economic Partnership Agreement (EPA) 8

Key sectors The Sectors seem the same… Health and care Services IT Education …but look very different from the inside Manufacturing Creative industry Construction 9

The future… The new normal: Too few high-skill workers and not enough jobs for medium and low- skill workers unless… We equip a growing young workforce with skills required for the jobs of the future Re-equip the current workforce with the skills required to keep up with a changing world The greatest challenge lies in the technology- and knowledge intensive sectors that also have the highest potential for economic growth and employment. We still need to understand better which practices and interventions work and which ones can be scaled up. Most skills initiatives today serve a few hundred or perhaps a few thousand young people, we must be thinking in terms of millions. 10

“The illiterate of the 21 st century will not be those who cannot read and write, but those who cannot learn, unlearn and relearn” Alvin Toffler

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