Technology is changing the face of the global jobs market.
While it commoditises, and will ultimately replace some jobs, it is also throwing up opportunities for people, for cities and for nations to gain an edge on their rivals. For jobs, and for talent.
As part of the Vivid Ideas Future of Work program, held in conjunction with Sydney’s Vivid festival, Indeed.com’s senior vice president Paul D’Arcy presented seven trends which are changing the face of the global jobs market as a result of the emergence of the internet economy.
Business Insider sat down for a coffee with D’Arcy to get a better understanding of how these trends can impact Australian workers and Australia.
D’Arcy said the key change in the global jobs market, which is reinforced by the seven trends he has identified by mining Indeed.com’s massive jobs market database, is that skilled workers are a relatively scarce resource with the power swing to them from employers.
1. In Australia, and in other industrialised nations, every company is now a tech company.
D’Arcy told us that only 25% of software engineers actually worked in software companies.
In the US, “analysis of 1.5 million software developers and programmers found that only 7% work for software firms.”
2. Specialised software is leading to a highly specialised workforce.
D’Arcy highlighted again the example of the maitre d’ role for the Royalton Hotel in New York as an example of how “even the most human jobs now have a software interface”.
He also said that as a reult “work is becoming highly specialised with 91,000 unique job titles on Indeed in a single day recently.
3. Today’s labour market is becoming two separate markets: one for high-skilled workers and one for everyone else.
Even with a relatively high unemployment rate at the moment, it was still difficult to fill “highly skilled” roles in Australia at the moment. That, D’Arcy said, meant Australia was becoming two very different labour markets – one which was highly skilled and one where technology was commoditising and marginalising the functions performed by the employee.
That’s a challenge for the Government to help “more people participate in the high-demand portion of the economy”, D’Arcy said.
4. Full-time jobs are being replaced by more flexible alternatives.
A new trend has emerged in that “after pay, flexibility is the most important requirement when choosing a job for Australians”.
That shift is important for employers, D’Arcy said, because “the interest in these jobs may indicate that candidates are increasingly looking for work that follows their schedule rather than an employer’s. The attraction and retention of talent may increasingly rely on how work is done rather than when and where that work is done.”
He said even highly specialised roles were increasingly working remotely.
5. High-skilled labour is a national resource that is increasingly mobile.
A BCG survey found that 9.1% of people around the world were searching actively for jobs abroad. “Culture, policy, religion, language, colonial history, and economics determine global labour migration paths,” D’Arcy said.
Which means that the challenge for Australia “is to attract new talent to the country while retaining the existing base of skilled labour”.
6. Where talent migrates, so will the smartest companies.
A willingness to move might be a challenge for Australian business. But, the willingness of workers to migrate and the scarcity of people with higher education (708 million people – a little less than 10% of the global population) coupled with the attractiveness of both Australia (No 7 destination for talent) and Sydney (No 4 most desirable destination) was an opportunity for the nation D’Arcy said.
This is particularly so because “the talent drawn to Australia is 3.5x more likely to be searching for computer and mathematical jobs than current residents”. As the skilled workers come to Australia, the companies will follow and “expand tech hiring in Australia”.
7. The internet is changing the way job-seekers respond to labour market trends.
Job-seekers are more active than ever before. Younger, more educated workers appear to be the most active.
Strikingly, D’Arcy said 65% of hired candidates worldwide return within 91 days and look for another job.