Dambisa Moyo: are some jobs lost forever? Biggest threats to the workforce, economy
Even before the economic crisis of 2020, structural problems already manifested in the economy and the workforce, said Dambisa Moyo, world-renowned economist and best-selling author, who warned of the dangers of neglecting these threats.
Moyo pointed to the declining labor force participation rate that has been a long-term trend, the failure of governments to deliver adequate growth over the last decade, and shifts in demographics and technology, all of which would endanger large portions of the workforce.
Importantly, about 40% of jobs in the U.S. would be replaced by 2030 due to the rise of automation, Moyo noted.
“We have to remember that even before COVID appeared, the global economy was in a pretty precarious place. Global growth forecasts for both developed and developing countries were quite low, and by that I’m talking about below the 3% target that you want in order for an economy to double per capita incomes in a generation,” Moyo told Kitco News. “We were already worried about a number of economic headwinds. We’ve been deeply concerned about technology and the risk of a jobless underclass. There’s been a lot of discussions about demographics shifts and the fact that today’s population around 8 billion will continue to grow very rapidly until 2100, according to the United Nations.”
COVID has simply accelerated a number of these issues, Moyo said.
Equally important as government initiatives is what the private sector can do to face these existing challenges, which is the basis of her upcoming book “How Boards Work: And How They Can Work Better in a Chaotic World.”
“Boards are at the top of the corporate structure and they play a critically important role,” Moyo said, noting that the challenges can include “digitization and technology concerns, and issues of the cultural frontier.”