Shifting Demographics

Birth rates continue to decline while populations age, creating acute talent shortages and reduced labor force participation in many countries. Skills shortages are concentrating in growth sectors, and more Gen Z workers are raising the bar for issues that matter to them, from DEIB (Diversity, Equity, Inclusion, and Belonging) to climate change.

TREND 1

A Generational Shift in Employment Expectations

Across every global issue—from Diversity, Equity, Inclusion, and Belonging (DEIB) to Climate Change to the LGBTQ movement—Gen Zs are demanding more from their employers. On the environment, 52% say companies are not doing enough.

The role and expectation for business has never been greater, and organizations need to have a clear and genuine purpose if they want to attract, develop, and retain Gen Z talent.

Gen Z will make up 27% of the workforce by 2025 and they feel strongly about DEIB.
68% of Gen Z workers are not satisfied with their organization’s progress in creating a diverse and inclusive work environment and 56% would not accept a role without diverse leadership.
Younger generations will be four to seven times more exposed to heatwaves in their lifetimes than older generations.

TREND 2

A Priority Issue for Workers: The Issues They Care About

More than ever before, workers want to know where companies stand on issues they feel passionately about. Employers need to demonstrate their social and environmental impact with a more science-based approach.

They need to focus on creating “Net Positive” employment – broadening diversity, equity, inclusion, and belonging, increasing individual employability, and giving workers greater control of their prosperity so they can feel confident they have the skills for today— and tomorrow.

People and Prosperity levers are a priority, and organizations will need to build multi-disciplinary capabilities to address the S of ESG.

On the environment, workers will seek new opportunities and skills in green growth industries.

The pace of ‘green collar’ job creation is set to accelerate in 2023 as is the definition: from jobs in green sectors to those that reduce the consumption of energy and raw materials, limit greenhouse gas emissions, minimize waste and pollution, protect and restore ecosystems, and enable enterprises and communities to adapt to climate change.
About 6 in 10 Europeans believe that policies to fight climate change will create more new jobs than they eliminate.
75% of investors say companies should address ESG issues, even if doing so reduces short-term profitability.

TREND 3

To What Degree Should You Consider A College Degree?

Degree requirements have long been used to filter candidates, and the rise of resume parsing technology only accelerated that trend.

But there’s a downside—many candidates without college degrees are prevented from accessing better jobs, despite having skills and experience that make them eminently qualified.

Now the tight labor market is prompting employers to reduce or eliminate degree requirements. Google, Delta Air Lines and IBM are just a few of the companies shifting to data and insights—not just academic performance—to better gauge a candidate’s employment potential.

TREND 4

It’s Time to Retire Our Concepts of Retirement

With labor shortages growing, employers need to find talent wherever they can. And what better place to look than among the millions of capable and highly motivated retirees? People with a lifetime of work experience who are willing and able to make a contribution—and a difference.

Employers need to re-educate themselves to identify how they can best use older workers. People working longer helps them live longer. Being socially integrated contributes to their longevity.

Joseph Chamie, Demographer and Former Director, United Nations Population Division

Populations are aging rapidly in developed countries — in France, President Emmanuel Macron is preparing to raise the minimum retirement from 62 to 65.
A record 3.2 million U.S. workers retired in 2020, and 10,000 workers will retire every day until 2029.
There will be a global worker shortage of 85 million by 2030 (roughly equivalent to the total population of Germany).
Rising costs of living and desire for connection are bringing retirees back to work.