The New Production Workforce: Responding to Shifting Labour Demands
Summary
The report analyzes the impact of automation, customization, and protectionism on the global production workforce, identifying significant risks of job displacement in developing economies and skills mismatches in advanced economies.
Key insights
- The report estimates that 16% of jobs across the five analyzed production industries are susceptible to displacement, after accounting for potential job gains resulting from the same trends.
- Demand for labour in non-production segments and services is projected to increase by up to 45%, as differentiation in the market shifts toward innovation and customer experience.
- Skills mismatches are expected to be most acute in regions with high-skill but small production workforces, such as East Asia and Western Europe, and in large consumer markets like China and the United States.
- Automation is identified as the primary driver of job displacement, with the highest risks found in South Asia and other developing economies, particularly affecting middle-skill workers.
- The logistics value chain segment, comprising transportation, warehousing, and distribution, is considered the most susceptible to job disruption and displacement due to the consolidation of these functions through technology.
- The report identifies a trend toward 're-shoring' production to advanced economies, though the new jobs created will differ from traditional offshored roles due to increased automation.
- The People’s Republic of China currently employs the largest share of the analyzed workforce at 36%, but faces significant risks of skills mismatches as it attempts to move toward higher value-added production.
- The report argues that traditional skills training is insufficient and calls for a multistakeholder human capital strategy focusing on creating an adaptive workforce, planning for uncertainty, and upskilling existing workers.
Cite the original document
- APA
- World Economic Forum (2018). The New Production Workforce: Responding to Shifting Labour Demands. http://www3.weforum.org/docs/WEF_White_Paper_The_New_Production_Workforce.pdf
- Chicago
- World Economic Forum. The New Production Workforce: Responding to Shifting Labour Demands. 2018. http://www3.weforum.org/docs/WEF_White_Paper_The_New_Production_Workforce.pdf.
- Wikipedia
- {{cite report |author=World Economic Forum |title=The New Production Workforce: Responding to Shifting Labour Demands |date=January 2018 |url=http://www3.weforum.org/docs/WEF_White_Paper_The_New_Production_Workforce.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{worldeconomicforum2018new, author = {{World Economic Forum}}, title = {{The New Production Workforce: Responding to Shifting Labour Demands}}, institution = {World Economic Forum}, year = {2018}, month = jan, url = {http://www3.weforum.org/docs/WEF_White_Paper_The_New_Production_Workforce.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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