Demographic, Technological Shifts are Reshaping Jobs: WEF 2025

The labor market is undergoing significant transformations driven by demographic changes, technological advances, economic pressures, and the green transition, according to the World Economic Forum’s (WEF) Future of Jobs Report 2025.

Ageing populations in high-income economies are creating worker shortages, while younger populations in lower-income regions are entering the labor market in large numbers. This demographic imbalance is shaping demand for skilled labor across regions and sectors.

Technology is also altering employment patterns. Expanding digital access and the adoption of AI are increasing the need for expertise in big data, cybersecurity, and other tech-driven roles. Companies are investing in these areas to remain competitive as automation and AI change the nature of work.

Economic uncertainty is adding pressure on wages and employment. Rising costs of living and slowing growth are creating demand for adaptability and resilience among workers, as job creation becomes more constrained.

The shift toward sustainable economies is generating new roles in renewable energy, EVs, and environmental management, while traditional industries are adjusting to climate-related requirements. Geoeconomic factors, including trade restrictions, industrial subsidies, and evolving supply chains, are further influencing hiring priorities and skills requirements, particularly in security and cybersecurity.

Flexible and remote work remain key priorities for many employees, reshaping participation in the labor market. Yet, overall labor participation remains uneven. Research from McKinsey and Company highlights that low unemployment rates can mask gaps in employment, particularly among women, young adults, and older workers.

The WEF report underscores the need for companies, governments, and workers to anticipate these shifts and invest in reskilling and strategic workforce planning to address evolving demands and opportunities.