The future of jobs across industries and global regions is fascinating. As the Fourth Industrial Revolution unfolds, we see both common and differentiated characteristics across countries and regions of the world.
What are the factors determining job location decisions through 2022 on overall industries?
The Future of Jobs report from WEF cites the availability of skilled local talent is the foremost consideration of the survey’s respondents, with 74% providing this factor. On the second place comes in the labor cost followed by production cost, and with less importance factors such as the flexibility of local labor laws, industry agglomeration effects or proximity of raw materials.
Expected to be in demand: Financial and Investment Advisers in East Asia and the Pacific and Western Europe; Information Security Analysts in Eastern Europe; Assembly and Factory Workers in Latin America and the Caribbean, Middle East and North Africa, South Asia and Sub-Saharan Africa; and Electrotechnology Engineers in North America.
The link between labor costs, skills, and investment in automation technologies
According to one recent study, manufacturing added-value per dollar of labor cost in 1997 was twice as high in Mexico than in the United States. By 2013, this gap had shrunk to less than 15%.
It’s expected that simultaneous investment in automation technology and labor augmentation in advanced economies continues through 2022. As a result, shifting the comparative advantage in labor costs will affect the industrial structure of economies such as Vietnam through re-shoring of work tasks in sectors such as textiles, apparel, footwear or electronics assembly.
This is why we see emerging economies increasingly shifting toward a domestic consumption-driven growth model, with rising local middle-classes generating increased demand for goods and services traditionally intended for export.
How optimistic are you about finding local talent in your branch areas in the future?
At SourceMatch, we’ve had the privilege to work with many of our clients who wanted to expand into new countries. We’d love to hear about your plans! Reach out to us at email@example.com.