As 2025 unfolds, global labor markets are grappling with the compounded effects of the COVID-19 pandemic, elevated cost-of-living, geopolitical conflicts, climate emergencies, and economic downturns. While global inflation is projected to ease to 3.5% by the end of the year—below the average of the first two decades of the 21st century—the cost-of-living remains a persistent challenge worldwide.
The World Economic Forum (WEF) Future of Jobs Report 2025 outlines the key macro trends shaping labor markets in 2025. Based on insights from over 1,000 global employers representing more than 14 million workers across 22 industries and 55 economies, the report sheds light on how these trends are driving job transformations, skill demands, and workforce strategies for the coming years.
Five Key Macro Trends Transforming the Labor Market
1. Broadening Digital Access
The most transformative trend is the expansion of digital access, expected to reshape 60% of businesses by 2030. Advances in technologies such as artificial intelligence (AI), information processing (86%), robotics and automation (58%), and energy-related innovations (41%) are at the forefront of this transformation.
These advancements are set to create divergent impacts, with some roles rapidly growing while others decline. Demand for technology-related skills will surge, making this trend a critical driver of workforce change.
2. Increasing Cost-of-Living and Slower Economic Growth
Economic conditions, particularly rising living costs and slower growth, rank as the second most transformative factor, with half of businesses expecting significant impacts by 2030. Although global inflation is easing, economic slowdowns are anticipated to displace 1.6 million jobs globally.
This trend underscores the growing importance of skills such as creative thinking, resilience, flexibility, and agility to navigate economic challenges.
3. Climate-Change Mitigation
As the third-most transformative trend, climate-change mitigation leads the green transition, with 47% of employers prioritizing this focus in the next five years. Roles in renewable energy, environmental engineering, and electric/autonomous vehicle development rank among the fastest-growing professions.
Environmental stewardship has emerged as a top skill, reflecting the increasing integration of sustainability into business practices.
4. Demographic Shifts in Workforce Populations
Global labor markets are experiencing two contrasting demographic trends: aging and declining working-age populations in higher-income economies, and expanding working-age populations in lower-income economies.
These shifts are fueling demand for talent management, teaching, mentoring, and healthcare roles like nursing professionals. Simultaneously, growing working-age populations are driving growth in education-related professions, such as higher education instructors.
5. Geoeconomic Fragmentation and Geopolitical Tensions
Geopolitical and geoeconomic trends are projected to reshape one-third of global businesses over the next five years. These dynamics include increased trade restrictions, industrial policies, and shifts in global trade relationships, particularly with the United States and China.
Employers responding to these trends are likely to offshore or reshore operations. The demand for security-related roles and skills in network and cybersecurity is rising, alongside human-centered skills like leadership, social influence, resilience, and adaptability.
The trends outlined in the WEF report emphasize the complex interplay between technology, economics, climate, demographics, and geopolitics in shaping the future of work. Businesses must adopt strategies that integrate digital innovation, sustainability, and inclusivity to thrive in this evolving landscape.
As these changes unfold, the focus on reskilling and upskilling the workforce will remain paramount, enabling workers to adapt to shifting demands and seize opportunities in emerging sectors.
