ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Concerned About AI Taking Away Jobs? Here are the Real Reasons Behind Layoffs

HSBC's report suggests that there are 4 macroeconomic factors playing a bigger role than AI in job displacement.
PUBLISHED MAR 25, 2024
Cover Image Source: Pexels | Ivan Samkov
Cover Image Source: Pexels | Ivan Samkov

The rise of AI has triggered a lot of hysteria about the technology taking away jobs from human beings at a time when layoffs aren't slowing down. The widespread popularity of ChatGPT towards the end of 2022 highlighted the growing popularity of AI, sparking a heated discussion about its potential impact on the workforce.

Cover Image Source: Getty Images | Leon Neal  Staff
Image Source: Leon Neal Staff/Getty Images

But contrary to existing fears, a recent HSBC report suggests that technological developments like the growth of AI might not even be the primary factor contributing to job displacement in the future.

Based on data from the World Economic Forum's "Report on Jobs 2023," HSBC highlights that four main macroeconomic trends are predicted to cause job displacement. The primary factor anticipated by companies to lead to job losses is slower economic growth. In fact, the World Bank recently projected a significant decrease in global economic growth with expectations of 2.1% for 2023 compared to last year's 3.1%.

Image Source: : Pexels/Liza Summer
Image Source: : Liza Summer/Pexels

"The challenges are evident - due to the weakened economic growth and overall shortages in supply or demand, numerous firms anticipate operating with a reduced workforce," stated analysts at HSBC in their report. The challenges are common as weaker economic growth and shortages in supply or demand prompt many firms to anticipate operating with a reduced workforce. “But it’s important to remember that not all changes in the economy are expected to mean fewer workers,” the report also mentioned. For instance, companies expect the green transition and the adoption of Environmental, Social and Governance (ESG) standards to lead to an increase in job opportunities.

Among the patterns foreseen by companies to result in job creation, the "increased adoption of new technologies" stands out and Artificial Intelligence (AI) is a significant part of this trend. According to data from the World Economic Forum, over 20% of companies expect AI to create jobs instead of replacing them. However, there are two tech-related factors that are likely to lead to roles becoming obsolete: the emergence of both humanoid and non-humanoid robots.

Image Source: Pexels/Pavel Danilyuk
Image Source: Pexels/Pavel Danilyuk

"While AI receives much of the current attention, it's essential to thoroughly consider the impact that a wide range of technologies could have on the labor market," remarked HSBC. Particularly, in the realm of technology, the impact of new developments may extend beyond merely replacing jobs. HSBC raised an important question about whether there will be an adequate number of workers with the right skills to fulfill these new requirements.

In addition to slower economic growth causing job losses, HSBC identified several other factors affecting businesses such as supply shortages and rising business costs. Consumers are also facing higher living expenses and the ongoing impacts of the Coronavirus pandemic. 

In an evolving tech landscape, continuous learning, upskilling and reskilling are becoming essential for individuals to remain competitive and secure their career prospects. Analytical and creative thinking, resilience, flexibility and agility, motivation and self-awareness, curiosity, life-long learning and technological literacy are among the most in-demand skills in 2023, per WEF's "Future of Jobs Report 2023" report. Staying aware ad agile in the face of technological disruptions can hence help workers navigate potential job uncertainties and embrace the new opportunities that emerge.



 

MORE ON MARKET REALIST
Seacrest was so astonished that he had to test the contestant's strength right then and there.
11 hours ago
Drew Carey is quite a sensation when it comes to performing viral dance trends.
12 hours ago
The guest initially expected her grandmother's painting to be worth a couple hundred dollars.
13 hours ago
The creators of the show apparently went too far with the joke but tried to make up for it too.
1 day ago
The TikTok creator claimed that the recalled products are widely used by low-income and middle-class families.
1 day ago
The star was stopped midway by his partner while fans loved the look.
1 day ago
Viewers couldn't believe what they saw and some even suggested it could be a prank.
1 day ago
Cuban offered the entrepreneur a "geek to geek" offer that he couldn't refuse.
1 day ago
Reports suggest that the anti-theft measures are causing hostility between shoppers and workers.
2 days ago
Seemed like inflation has been eating into the nuggets sold by Walmart under Great Value.
2 days ago
The entrepreneur shared that it was a habit of his to reward the people who worked hard for him.
3 days ago
Pointing at the shelf full of Great Value Orange Juice, the creator said that the brand is trying to fool people.
3 days ago
For the contestant named Linda, the deal was further sweetened as she got to meet a celebrity.
4 days ago
When it was her turn to play, Mama Doris went blank on the fifth answer costing her team.
4 days ago
She herself couldn't believe that she had come up with a solution that seemed impossible.
4 days ago
Carey called the aspiring actor a 'future star' while celebrating his win on the show.
4 days ago
Kimmel successfully bagged a multimillion dollar deal as well.
4 days ago
He got too close to the contestant but she played along while the audience laughed awkwardly.
5 days ago