Economy and the Future of Work

NEI Global Relocation recently unveiled a comprehensive report titled “Economic Trends and the Future of Work.” This in-depth analysis provides a critical examination of the evolving global economy and its impact on workforce dynamics and global mobility.

Report Highlights:

1. Global Trade Dynamics and Job Movement: The report covers global trade dynamics, including migration of manufacturing jobs and the effects of free trade agreements. In the U.S., manufacturing jobs have declined from 19.6 million in 1979 to nearly 13 million by November 2022, a significant 56 percent decrease when adjusted for population growth. This trend is not confined to manufacturing, as it also influences secondary and tertiary sectors, with studies showing a substantial loss of indirect jobs connected to these industries.
2. Impact of Technology on Workforce: Automation and technological advancements, particularly in industries like automobile manufacturing, have greatly reduced the need for human labor, while increasing demand for skilled labor. This shift has resulted in a rising compensation per job in the manufacturing sector, reflecting the need for more specialized skills. The report cites a Deloitte study predicting 2.1 million unfilled manufacturing jobs by 2030 due to these technological shifts.
3. Economic Trends and Predictions: The analysis presents a mixed outlook for the global economy, highlighting slowing economic activity and the potential for mild recessions in certain areas. Contributing factors include significant increases in interest rates and inflationary pressures. Doug Duncan, Chief Economist at Fannie Mae, emphasizes the likelihood of economic slowdown and the challenges of wage growth keeping pace with inflation.
4. Demographics and Labor Force Implications: The report underscores significant demographic shifts, especially in developed countries like the U.S., where birth rates have declined markedly. This trend signals a potential future decrease in the domestic workforce, emphasizing the need for strategic immigration and corporate relocation policies.

Importance of the Analysis:

• For Global Mobility and Talent Acquisition Professionals: This report is an essential guide for navigating the complexities of a changing work environment and global relocation, offering insights into workforce trends, automation, and economic predictions.
• For Strategic Planning: The report provides a basis for companies to recalibrate their talent acquisition strategies and compensation norms in response to the trends and challenges outlined.