Smart online platforms are increasingly making it easier to find a job. By 2025, they could add $2.7 trillion to global GDP and solve many problems.
Global labor markets have not kept pace with the rapid changes in the global economy, which is not good for efficiency. Millions of people can’t find work, having to fight for vacant positions. Many workers feel overqualified or undervalued. These problems are proving costly to the global economy. More importantly, there are hundreds of millions of unemployed, underemployed, underpaid and depressed people.
Smart online platforms can help solve many labor market problems by effectively connecting people and vacancies. Such platforms include sites like Monster.com and LinkedIn, bringing together individual resumes and job openings from traditional employers, as well as fast-growing digital new economy marketplaces like Uber and Upwork. They can bring significant benefits to the economy as a whole as well as to people.
What Is Digital Economic Growth?
Economic growth is the process of increasing and improving national production, so that a country can produce more goods and services and improve their quality. It changes growth in total GDP or per capita.
The McKinsey Global Institute report shows the following trends:
- Globally, 30 to 45 percent of the working-age population is unemployed, i.e., they are unemployed or underemployed. In Brazil, China, Germany, India, Japan, the United Kingdom and the United States that number reaches 850 million.
- Smart online platforms are growing, getting faster and more efficient. An analysis of the proposals shows that they could add $2.7 trillion, or 2% of global GDP in 2025.
- Up to 540 million people could successfully use smart online platforms by 2025.
- More than 230 million people will find jobs faster, reducing unemployment.
- 200 million unemployed or underemployed people will gain additional working hours through independent platforms.
60 million people will be able to find jobs that match their skills and preferences exactly
- 50 million people will move from illegal jobs to formal jobs.
- Countries with high unemployment and low labor utilization rates, such as Greece, Spain, and South Africa, will benefit the most. Among advanced economies, the United States, for example, would benefit greatly because of the relative fluidity of its labor market. In contrast, the potential of China and Japan is lower as a result of their low unemployment and other barriers.
- Smart online platforms reflect the overall picture of demand for skilled workers, allowing young people to make better educational choices. As a result, more efficient spending on higher education could reduce the $89 billion in waste in Brazil, China, Germany, India, Japan, the United Kingdom, and the United States.
Companies will be able to use smart online platforms not only for recruiting and hiring, but also for evaluating staff in recruitment, subsequent performance reviews and monitoring individual development outcomes. Such an approach will greatly increase companies’ productivity and reduce the cost of recruiting.
Smart online job applicants will unite disparate national labor markets, which is very important for Russia. With relevant competencies, the location of the job seeker will no longer matter. The growth of remote working opportunities and the development of automatic translation systems will allow interested employers to create international teams of the best professionals. On the other hand, every professional with high competences will be able to apply for a job in the best corporations in the world. Such a trend will reduce labor costs in overheated national markets and create “social elevators” for young professionals in less developed countries.
It won’t be long before online platforms completely abandon the concepts of a resume and job bank. The availability of advanced functionality to assess the competencies and psychological characteristics of candidates will automatically select the most suitable options to close vacancies. On the other hand, applicants will be able to compare their profiles with the requirements of employers, to receive recommendations about the areas of development and, using the opportunities of distance learning, to build up the missing competences.
In addition, the search for freelancers will be simplified many times over. The line between an employee doing full-time work in the office and temporary staff on a remote basis will disappear. The employer will be able to quickly and easily see the competency profiles of candidates freelancers, offer them to take additional tests, conduct interviews and choose the best option. Risks of unfair attitude to work on the part of such employees will disappear, as the smart-online platform will reflect such inappropriate behavior in the freelancer’s profile or include it in the “black list”.
On the other hand, employers’ responsibility will also increase manifold. Smart online platforms in the labor market will be able to integrate not only complete information about applicants, but also data about the internal situation in various companies. As Russian practice shows, many companies disregard the requirements of the RF Labor Code: they pay “gray” or “black” wages, unreasonably delay or reduce payments and violate the rights of employees in every way.
Platforms such as Glassdoor and Vault, which publish anonymous feedback and salary information from former and current employees at specific organizations, are changing the game. They offer a new perspective on how work is structured at specific companies, increasing the likelihood that users will choose the work environment that works best for them.
The day is not far off when smart online platforms, independent of Russian employers, will become the most important source of information for potential candidates. Given the expanding possibilities for remote access work, many job seekers with full information about the futility of cooperating with unscrupulous companies will refuse such offers. Human resources will be able to easily and simply flow to businesses that fully comply with all legal requirements and are interested in developing human capital, regardless of the physical location of offices and jurisdiction. And companies that neglect people will have to change their HR policies completely or close their businesses.
Even now that people have publicly visible social media profiles, the war for talent is heating up. Competitors can poach valuable employees (and sometimes entire teams). Greater mobility is a plus, both for the employee and the economy as a whole, but companies can face high turnover. It is becoming more important than ever to treat employees well and create a comfortable workplace. Companies will have to carefully maintain their reputations, just as they maintain their consumer brands.
Thanks to new technology, the talented graduates of 2025 will have no trouble finding jobs, nor will competent people of any gender, age, faith or nation. And ineffective employees who are used to relying on “connections,” lack competence and motivation, or have negative psychological traits, will find it increasingly difficult. The demand for services and the level of remuneration of true professionals in the future will increase considerably, and the process of competence development and personal growth will become a mandatory and integral condition of a successful career.
Governments around the world have been trying to increase employment in recent years. Smart online platforms show real promise for greater transparency and growth in the labor market. When people communicate effectively with possible employers, the efficiency of the global economy grows as well. In order to gain these benefits, the legal framework, corporate and individual management practices, will have to change along with the technology. Based on smart online platforms, the world will come to a new era in the labor market.
Global Future Trends
What to watch out for if you’re on the hunt for business ideas.
The COVID-19 pandemic accelerated the fourth industrial revolution by an average of five years. What was considered quite cutting-edge back in 2018 is now seen as the norm at best and a fossilized fossil at worst. The main question for businesses affected by the restrictions is: in this crazy maelstrom, is it possible to fish out some business ideas that will ensure sustainability in the future?
If we look back three centuries, we see a Europe plagued by the bubonic plague. The inhabitants of London are leaving en masse to isolate themselves, among them a young Cambridge student, Isaac Newton. While the authorities issue recommendations for citizens, insisting on social distance, quarantine for the sick and sanitation of premises, close borders, and pursue “unhealthy” retail and entertainment establishments, Newton observes falling apples in Lincolnshire and formulates the law of universal gravitation.
It is no coincidence that the greatest discoveries go side by side with the deepest crises. When the world is sick, people seek to understand its condition and fix it. A special need for innovation is formed. These days, humanity is once again experiencing a fundamental shift called the “new normal. And in this new normality, it is important to grasp those trends that will define the contours of the future in order to integrate them into our practices. Of course, we are talking about the global trends of the new era.
Macro-Trends that Affect the Way We Think
The rise of the speed of change. One fast one eats two smart ones. While knowledge used to be a strength, with the rise of the Internet it has begun to depreciate. The main thing is not how much information a person can assimilate while climbing the career ladder, but how he finds it and how he disposes of it. Is he able to adapt quickly to change and be persistent enough to “bend this world”? The most in demand were flexibility, malleability, adaptability – qualities that, although amenable to development, still require certain prerequisites.
Increasing complexity. Employees at all levels are stressed because they no longer feel confident about the future. The number of factors determining what the world will be like tomorrow has multiplied, and uncertainty has become an inherent characteristic of life. The “six handshake theory” has taken on a new meaning as it has become clear that the expansion of connections and increased interdependence work not only for us, but also against us. No longer can we hope that the virus will be trapped within the confines of a single city or country. Just as there is no reason to believe that a financial crisis in one part of the world will not affect another.
Economic Trends Affecting the Business Agenda
Rising Government Debt. The total public debt of developed countries already exceeds the volume of their GDP, approaching a historical maximum, which restrains the growth of the world economy. High indebtedness forces spending cuts, while slow growth reduces revenues. This creates a vicious cycle of problems. Refusing to increase government debt would cause unemployment to rise. Turning on the printing press would provoke inflation. Defaulting and restructuring would scare away investors at a time when investment demand is already weak. The most reliable option is to introduce new technologies, create markets and increase production, but this is not an easy task in conditions of trade wars and sanctions.
Falling global trade. For the first time since World War II, world trade has declined. The Peterson Institute for International Economics considers the prolonged period of stagnation the longest since World War II. If countries do not abandon trade restrictions, the world economy will lose $10 trillion by 2025. But so far the situation is developing in the direction of de-globalization. We have to admit that not only sanctions policy hinders the development of world trade – pandemics, floods and incidents like the blockage of the Suez Canal bring trillions of dollars of damage to different sectors.
Falling energy prices. Falling oil prices could have spurred the world economy if they had not been caused by low demand from producers. We are used to the idea that falling energy prices should accelerate economic development. However, this view now sounds too superficial. The benefits of lower oil prices have never materialized, and investment in exploration and production has declined. The failed “stimulus” has exacerbated instability, so many consumer countries have set a course toward greater energy efficiency and producer countries toward lower production costs.
Social Trends Shaping Business Strategies
Green consumption against the backdrop of the industrial agenda of industrial capital centers. Eco-friendliness has become a criterion for every everyday choice: from ballpoint pens made from recycled materials to Class A electrical appliances. The prefix “eco” is perceived as an added value. But eco-certification itself is an additional cost, as well as certain requirements in terms of personnel, technology and quality control systems. Moreover, in a number of developing countries eco-certification is discussed as a factor that hinders industrial development. In particular, they are talking about striving for carbon neutrality, i.e. reduction of CO2 emissions to zero. Not all companies can achieve this target as easily as, for example, Google1.
At the same time, more and more often we hear about the implementation of ESG principles: E – environmental friendliness, S – social projects and G – corporate governance.
How to Use Trends in the Hunt for Business Ideas
Trends seem like interesting information to think about, but what matters is how you translate them into business practice. For example, the trend of social inequality signals that the poor will soon not be able to afford their previous level of consumption. And if you were planning to bet on “economy”, you have to take this into account. Price is not so critical for fashionable eco-products, but greenwashing will not be forgiven by buyers, so don’t pretend to be “green” without reason. The growth of life expectancy will tell you about the prospects for investment in the “silver economy” – from the production of ramps and anti-age cosmetics to the development of delivery services. By the way, Japan now sells more adult diapers than baby diapers. And even if a Promobot robo-consultant in a museum or a bank branch still seems like something out of the ordinary. Most likely, in a few years it will turn into an “average employee.
E-Commerce and Internet Sites – Rapidly Gaining Trend
One of the fastest-growing trends in the economic sector is e-commerce, Canadian Internet sites are rapidly increasing due to the surging popularity of e-commerce. From retail websites, gaming companies and financial enterprises, an ever-growing number of Canadian businesses are leveraging the power of the Internet to make their products and services more accessible to customers. It’s no wonder why: with a few simple clicks, Canadian consumers can experience everything from betting on a sports game or placing a stock trade without having to leave the comfort of their homes. This newfound convenience is driving Canadian gamblers to flock en masse towards Canadian Gambling Sites for a chance of making it big in the digital realm!
Choose 5-7 trends and try to answer the following questions:
- How will customer requirements change in light of this trend?
- How should our product or service change to meet the customer’s needs?
- How should business processes within the company change to meet market/customer requirements?
- What skills need to be developed to meet these requirements?
And you will see yourself and your business in the picture of the emerging future.
Conclusion of the Trends in the Future Digital Revolution Review
With the rapid growth in digital technology, it is difficult to predict what future trends will be. However, we can be sure that there will be a continued demand for personalization, data privacy and security, and mobile-friendly platforms. We will also see an increase in artificial intelligence (AI) and voice search technologies. As digital marketers, we need to stay ahead of the curve and keep our finger on the pulse of these ever-changing trends. Visit our website to read our latest trend reviews and stay up-to-date on the future of digital marketing.