Indeed, the data suggests that a workforce “mismatch” problem, not AI, could be causing a labor crisis.
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When you think about the future of work, the big question that seems to be at the top of everyone’s mind these days: How will artificial intelligence affect jobs, specifically my job?
New report from Indeed Hiring Lab suggests that the job market threat is far more complex than AI disrupting industries and causing massive job losses across sectors. The real crisis, the Indeed analysis suggests, could arise from a mismatch between the jobs that are growing and the skills and status of available workers. The problem, according to the data, is due to the convergence of three big trends: the departure of baby boomers, slower immigration and artificial intelligence reshaping white-collar work.
“There are basically two forces colliding at the same time,” says Indeed Hiring Lab economist Laura Ullrich. “One is the changes in AI technology and the other is the massive demographic change that we’ve all been hearing about for many years.” If these factors are not addressed, Indeed predicts that unemployment could nearly double to nearly 8% by 2040.
Here’s what Indeed’s experts say employers and employees can do now to prepare for and hopefully prevent this crisis.
What employers can do
Reevaluate job requirements and credential expectations
Priya Rathod, workplace expert at Indeed, says her biggest tip for employers is to not wait to think about future workforce planning. First, he says leaders need to review the language they use in job descriptions to see if it helps or hurts their chances of getting the best talent to apply.
“Are the credentials you’re asking for really necessary right now, or is it just how the role was always written because that’s really important,” he says. “Instead of thinking, ‘This is how we’ve always done it.’ Think, “What will serve us best in the future?”
This means getting rid of unnecessary degree requirements, prioritizing transferable skills over rigid career paths, and regularly reviewing job descriptions to ensure they match what your company needs not only now, but in the future.
Invest in the training of existing employees
One of the most important things Rathod says employers can do right now is think about what their workforce will need and figure out how to invest in and develop the people they already have.
“A lot of employees invest and upgrade on their own, but it’s better if an employer can guide some of that,” he says. “When you do that, it’s faster and less expensive than finding someone new.”
Data shows that recruiting new talent can easily cost employers thousands of dollars when factoring in job postings, recruiting tools, and lost productivity to fill a role.
Recruitment expansion
Looking at demographic change and the impact of AI in the coming years, Ullrich says sectors such as education, healthcare, manufacturing and government have a high population of workers who will soon retire and a low likelihood of job loss from AI. But when we look at the flow of new professionals entering the workforce, many are looking to enter fields like information, technology, business and professional services that will be hit hardest by AI disruption.
“[This creates] a corresponding problem where there are enough jobs and there are enough workers, but they are not in the right sectors,” says Ullrich.
To address this, employers, particularly those in high-growth industries, should consider how they can recruit employees who are adjacent to their industry. This means employers should focus more on skill overlap than exact experience or degree history.
“There are some fields that are declining and may have more transferable skills than you expect,” says Rathod. “So don’t be so clingy when you think about who might be right for a role.”
What can employees do?
Focus on human skills that AI can’t replace
“What we’re seeing right now is that people skills travel in a way that sometimes purely technical skills don’t,” says Rathod. “We hear over and over again that things like communication and critical thinking, leadership and empathy are the skills that are valued right now in many industries.”
Even with all the talk around artificial intelligence, Rathod says Indeed’s research shows that skills similar to those listed above appear in nearly three-quarters of all U.S. job postings. Therefore, he says, workers should highlight these skills on their resumes and in job interviews to show that they can do a job effectively despite the impact of technology.
Don’t overwhelm yourself with AI knowledge
Rathod says workers don’t need to become AI experts overnight, but they should familiarize themselves with new technology tools that can complement the work they’re already doing.
“Simply upgrading or re-skilling isn’t always helpful advice for someone who’s already lean,” he says. “There are a lot of people right now who are working multiple jobs or are parents and carers and are dealing with a lot of things in addition to working one full-time job.”
If you want to upgrade your skills, particularly around AI, Rathod advises workers to start with tools they have experience using, rather than brand new ones. “Start with the tools you use, because AI is already starting to show up in everyday things like your email and spreadsheets and job search platforms,” he says. This way, AI knowledge is more manageable and you can gradually expand your knowledge of how to use different tools.
Stay open to industries you may not have considered
While it’s hard to know definitively how to protect your career, one way to increase your chances of staying employed is to open yourself up to different fields you might not have considered. In a time of uneven job growth, Rathod says it’s wise for professionals to explore whether their current skills provide a path to enter a hot field or whether they need to acquire new skills.
For example, if you want to transition into nursing from an outside field, then you will obviously need to acquire the appropriate training and credentials. But if you’re someone who has a cyber or UX design background in technology, then you can easily transfer those skills to a role in healthcare.
The bottom line, Ullrich explains, is that she doesn’t want people to think that economists are predicting a “doomsday scenario” when they discuss the potential labor crisis. “This is a situation where if we know what’s coming, we can do a lot to make sure that 8% doesn’t happen,” he says.
