Vantage | Shifting landscape of global job market

The year 2023 has been marked by disappointments in the job market, with reduced increments, fewer vacancies and rampant layoffs affecting thousands of individuals. As we stand on the brink of 2024, the trend of economic challenges and job market uncertainties seems set to continue.

Paytm layoffs In a recent development, Paytm, an Indian fintech and payments giant, has made headlines by laying off 1,000 employees. The reason behind this strategic move is to boost efficiency by integrating artificial intelligence (AI) tools to handle repetitive and mundane tasks. According to Paytm, AI has proven to be more effective than human counterparts in certain job functions. This move by Paytm reflects a broader trend seen across industries, where companies are focusing on cutting expenses, maximising savings and doing more with less. The wave of austerity is evident in major global banks including UBS, Credit Suisse, Wells Fargo, Citigroup, Morgan Stanley, Bank of America and Goldman Sachs, which collectively cut 60,000 jobs in 2023. Challenges in the banking sector The banking sector, facing difficult times, has witnessed a decline in earnings over the past two years. Investment bankers, in particular, have experienced reduced income due to a decrease in deal-making and public listings. With fewer companies going public and investors opting for safer bets, banks are resorting to laying off employees to protect their profit margins. A recent report highlights the challenges faced by major global banks, emphasizing a trend of plummeting fees and the need for cost-cutting measures to maintain profitability. This transformation is not limited to the banking sector; it extends across various industries and is characterised by a global effort to protect profit margins by reducing headcounts. Impact on different sectors The tech sector stands out as one of the hardest-hit industries, with over 4,00,000 employees worldwide losing their jobs. Non-essential goods sellers, such as car companies like Ford and furniture retailers like IKEA, have also faced significant layoffs. Even the healthcare sector has not been spared, with companies slashing over 20 per cent of their staff on average. In a surprising development, the Big Four accounting firms – Deloitte, EY, KPMG, and Pricewaterhouse Coopers – have collectively let go of over 3,00,000 employees in 2023. This mass exodus is attributed to a changing job market landscape with firms responding to economic slowdown and advancements in technology. The job market transformation is a result of two key events – the economic slowdown and the rise of new technologies like artificial intelligence. These factors have led to significant changes and churn in the job market leaving fewer opportunities for human employment. Future of jobs A survey conducted by the World Economic Forum involving 800 companies across 27 industries and 45 economies reveals a complex picture. While these companies plan to create 69 million new jobs by 2027, they also anticipate eliminating 83 million positions, resulting in a net reduction of 14 million jobs. As we navigate through 2024, the job market is expected to become more competitive. Companies will prioritise versatile skillsets and individuals are urged to adapt, acquire new skills, and position themselves as valuable assets in the evolving workplace. Roles in artificial intelligence and machine learning, sustainability, business intelligence analysis, information security analysis and renewable energy engineering are expected to be in high demand. The job market is evolving and individuals with expertise in these areas will be sought after in the changing landscape. The job market of 2024 is characterised by challenges, transformations and a growing reliance on technology. While the wave of layoffs initiated in 2023 may persist, individuals can navigate these changes by embracing skill development and staying adaptable in the face of evolving job market dynamics. Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect Firstpost’s views. Read all the Latest News, Trending News, Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.