The Future of Jobs Report 2025 by the World Economic Forum identifies five megatrends that will transform the global labour market by 2030. These forces are interconnected and mutually reinforcing. Their combined effects are reshaping the what and how of our work, and altering our perspective on skills and employment in the current era.
While the net outlook for employment is cautiously optimistic, the labour market is entering a phase of non-linear transformation. Globally, new jobs will be created—particularly in digital, green, and care sectors—but large-scale displacement will continue. Skills obsolescence remains a key challenge, though the rise of upskilling and reskilling initiatives is starting to mitigate its pace.
Understanding the direction of change requires analysing the five dominant forces driving labour market transformation. Each megatrend captures a different dimension of the disruption—and together, they define the contours of the future of work.
- Technological Change
Digitalisation and AI are the most cited drivers of labour market change. Globally, 60% of employers expect major technological disruption, while in Europe this figure rises to 70%. European firms are slightly more likely to see robotics and autonomous systems as transformative (62% vs. 58% global), and nearly nine out of ten employers see AI and information technologies as key vectors of change.
Moreover, the pace of change is faster in Europe: 42% of core skills are expected to change in the next five years (vs. 39% globally). Roles such as AI specialists and data scientists are growing faster in Europe than elsewhere,with a projected net growth of 109%. This figure is notably higher than the global average for the same occupation, which stands at 82%.
But the challenge is less about identifying emerging occupations than ensuring the workforce can transition into them in time.
- Economic Uncertainty
The global economy faces a slow recovery, with inflation, energy volatility, and interest rate shocks affecting productivity and hiring. Employers worldwide are concerned—half expect inflation to disrupt operations.
Nonetheless, economic slowdowns remain a structural constraint. Globally, they are expected to cut 3 million jobs and create only 2 million. Economic growth remains slow in southern and eastern Europe, increasing the risk of worsening inequalities across the continent. In response, employers are shifting focus from expansion to efficiency—creating demand for supply chain optimization, business intelligence, and cross-functional roles.
- Green Transition
Globally, green jobs are growing by 12% annually, but the supply of skilled workers is lagging. Employers increasingly report a structural shortage of profiles such as environmental engineers, renewable energy specialists, and circular economy designers.
Although Europe sets ambitious regulations such as the Green Deal and Fit for 55, many member states struggle to align their training systems with these green objectives. This gap between policy goals and practical implementation threatens to create a labour shortage in the emerging climate economy unless significant investments are made in vocational training and lifelong learning.
- Demographic Shifts
While Europe is ageing rapidly—with rising demand for healthcare, care work, and automation—developing countries are experiencing a youth surge that far outpaces job creation. This global imbalance threatens to widen inequalities both within and between regions. In Europe, 54% of employers anticipate talent availability will worsen, far above the global average. This reflects both demographic shifts and persistent structural issues in talent acquisition and retention across key sectors. Internal labour market mobility remains low, and social models tend to prioritise employment protection over workforce agility.
- Geoeconomic Fragmentation
Rising geopolitical tensions and shifting trade dynamics are reconfiguring global labour flows. Worldwide, a third of companies are adapting their operations to new trade barriers and industrial policies. In Europe, the perception of this trend is more muted—but the impact is no less real. Supply chain reconfiguration, reshoring, and strategic autonomy debates are already affecting labour demand in manufacturing, cybersecurity, and critical infrastructure.
These five megatrends collectively illustrate the multifaceted nature of labour market transformation. To better contextualise Europe’s position within this evolving global landscape, the following table offers a comparative overview of key labour market dimensions.
| Dimension | Europe | Global |
| Perception of tech disruption | 70% of employers | 60% |
| Skills disruption (next 5 years) | 42% of core skills | 39% |
| Expectation of talent shortage | 54% of employers | <50% |
| Investment in reskilling | 57% of employers | 55% |
| Wage share increase projected | 49% of companies | 52% |
Note. Data adapted from Future of Jobs Report 2025, by World Economic Forum, 2025. Table created by the author.
Europe is ahead in recognising digital and ecological disruption, but lags slightly in projected wage growth and in mobilising untapped talent pools. Employers are adapting: 32% plan to upgrade workers in their current roles, while 19% will restructure internally. However, barriers persist—66% cite skills gaps as a major obstacle (vs. 63% globally), and nearly half struggle with cultural resistance to change.
In conclusion, while global job numbers are projected to grow by 2030, existing and emerging skills differences between growing and declining roles could exacerbate existing skills gaps. The from declining jobs are anticipated to comprise resilience, flexibility and agility; resource management and operations; quality control; programming and technological literacy.
Given these evolving skill demands, the scale of workforce upskilling and reskilling expected to be needed remains significant: if the world’s workforce was made up of 100 people, 59 would need training by 2030. Of these, employers foresee that 29 could be upskilled in their current roles and 19 could be upskilled and redeployed elsewhere within their organization. However, 11 would be unlikely to receive the reskilling or upskilling needed, leaving their employment prospects increasingly at risk.
EU ALMP Observatory (EU-ALMPO) stands as a critical answer to the profound shifts now reshaping global and European job markets. This initiative is designed to develop a central framework, leveraging sharp analysis, advanced AI, and a unified platform for policymakers, all aimed at drastically improving how we develop, apply, and evaluate Active Labour Market Policies (ALMPs). In a time of constant disruption, having shared, evidence-based tools to craft more inclusive and proactive ALMPs isn’t merely helpful – it’s absolutely essential for ensuring our future workforce can adapt and thrive.
References:
World Economic Forum. (2025). The future of jobs report 2025. World Economic Forum. https://www.weforum.org/publications/the-future-of-jobs-report-2025/