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JIMMY MOYAHA: We’re delving into the future of employment as discussed by the World Economic Forum. In anticipation of their upcoming conference next week in Davos, they released a Future of Jobs report that we’ll analyze and discuss.
I’m joined by economist and founder of Pan African Investments, Dr. Iraj Abedian, for this discussion. Dr. Iraj, thank you for being here. The insights in the World Economic Forum’s report are quite fascinating. What key takeaways does it offer about the labor market both locally and globally?
IRAJ ABEDIAN: First and foremost, Jimmy, happy new year to you and our listeners. It’s important to note that the World Economic Forum isn’t alone in providing predictions about the future of job markets worldwide.
Almost all research organizations share a unified message, highlighting that the traditional job classifications—spanning low-skilled to highly skilled positions—are becoming increasingly obsolete.
Nonetheless, every job category will face substantial impacts from digitalization, generative technologies, and artificial intelligence [AI], in addition to the transformation of the workplace.
During the COVID-19 pandemic, we adapted to remote work; this is just the beginning.
Many positions—potentially 40-45% of conventional roles—such as administrative and clerical jobs, could be entirely eliminated, much like typewriters have disappeared and typist roles have diminished as we once knew them. This is the central theme.
To envision the future of jobs, we must adopt systemic thinking, explore applications, prioritize automation, and, importantly, acknowledge the digitalization and structuring of job markets.
This represents a substantial challenge for everyone, particularly for the younger generation. There are other facets we can explore.
JIMMY MOYAHA: One of those facets is the skills required. What does this transformation entail for the skills that will be in demand? As you pointed out, typewriters are no longer relevant, and automation is on the rise, suggesting new skill sets are essential. What skills should we expect to see in the future?
IRAJ ABEDIAN: At its heart, this transition calls for analytical skills, the ability to develop applications, and the re-automation of processes. It encompasses skills in software development, data integration, management of large datasets, and a global outlook on database usage. Furthermore, the capability to leverage big data across diverse sectors—such as healthcare, marketing, production, etc.—will be vital.
Thus, the shift, as I see it, will transition from low-skilled, frontline roles to skill-intensive, knowledge-driven, and analytics-focused positions.
This indicates a dramatic change in income distribution and significantly affects the age demographics of the employable workforce.
Additionally, people may remain in the workforce longer; the conventional retirement age of 55 to 65 could very well extend beyond that. Hence, we might see a rise in entry-level unemployment, which will have socio-economic and political implications.
JIMMY MOYAHA: Dr. Iraj, how can a nation prepare for this? As an economist, you analyze economic growth and development. How can economies, such as South Africa’s, prepare for the acknowledged shifts driven by AI, given that new sectors and markets need to be cultivated? What strategies can be implemented to ensure that the economy adapts and flourishes in this evolving employment landscape?
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IRAJ ABEDIAN: Honestly, I wish I had all the answers …
Let me be completely frank: the pace of change is so swift that we will witness more transformations in the next five years than we have seen in the last 50 or even 20 years.
The velocity of these changes complicates our ability to forecast the future, as it necessitates an understanding of what the next five years will look like—something we currently lack. With a great deal of humility, I recognize that very few, if anyone, can assert that they have a clear understanding.
Moreover, we need to fundamentally rethink our education system, shifting from traditional schooling methods that emerged during the Industrial Revolution to a model that focuses on developing human resources.
This requires us to prepare younger generations for a drastically different approach to acquiring knowledge, applying it, and connecting what they know with what they do not.
This reimagining of education is essential in countries like ours, where the educational system faces distinct challenges. I underline that I’m not merely discussing philosophical concepts. Politicians and policymakers are currently preoccupied with basic necessities, such as proper sanitation in schools, rather than transforming our education systems into comprehensive human-resource development frameworks aimed at lifelong learning, effectively equipping our youth for analytical thinking from an early age—not just through six or seven hours of formal school time.
This signifies a substantial overhaul of our human-resource development strategy during and after formal education, as well as through life post-employment.
Personally, I’ve had to continuously reinvent my skills over the past decade. With each technological leap, my field is impacted, requiring me to adapt or risk obsolescence.
This presents a significant challenge for countries like South Africa—we must shift the conversation. Acknowledging the urgency of the situation is essential, and we need to seek immediate interventions that facilitate human-resource development, such as enhancing broadband access, among other factors. Thus, this stands at the forefront of our challenges.
JIMMY MOYAHA: Indeed, the only constant in life is change [chuckles], and that is exactly what the report suggests.
We’ll need to conclude our discussion here. Dr. Iraj, I greatly appreciate your time and valuable insights.
Iraj Abedian, an economist and founder of Pan African Investments, has been contemplating the World Economic Forum’s recent Future of Jobs report, which underlines several ongoing transformations and the necessity for reevaluation as we approach the future of employment.
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