organizations by 2030, while over half expect climate adaptation to do so. By contrast, in Central Asia, only 19% of respondents see climate trends as relevant to their business activities. As countries seek to meet climate goals, questions arise regarding whether their workforces are equipped with the necessary skills to meet the demands of a net-zero future. The shift toward sustainable practices will require specialized expertise which will incur transition costs, particularly for those working in production occupations such as assemblers and fabricators.27 Despite a global 12% increase in workers acquiring green skills between 2022 and 2023, demand continues to outpace supply, with the number of job postings requiring at least one green skill rising by nearly 22% over the same period. To fully capitalize on opportunities created by the green transition and harness them in a way that is fair and inclusive, prioritizing green skilling is essential. Demographic shifts The world is currently experiencing two fundamental demographic shifts: an aging and declining working-age population predominantly in higher- income economies, due to declining birth rates and longer life expectancy, and a growing working-age population in many lower-income economies, where younger populations are progressively entering the labour market. In higher-income nations, aging populations are increasing dependency ratios, potentially putting greater pressure on a smaller pool of working-age individuals and raising concerns about long-term labour availability. In contrast, lower-income economies may benefit from a demographic dividend. These demographic shifts have a direct impact on global labour supply: currently balanced between lower-income (49%) and higher-income (51%) working-age populations, this distribution is expected to shift by 2050, with lower-income countries projected to hold 59% of the global working-age population.29 Geographies with a demographic dividend, such as India and Sub- Saharan African nations, will supply nearly two-thirds of new workforce entrants in the coming years.30 Findings from the Future of Jobs Survey indicate that for 40% of employers worldwide, aging and declining working-age populations are driving transformation, while 25% are being transformed by growing working-age populations. Many high- income economies experience the combined effects of both trends. Certain countries, including Australia, Germany and Japan, experience more significant effects from declining working-age populations. While few companies operating in Sub-Saharan African countries expect to see transformation due to aging and declining working age populations, their expectations regarding the impact of growing working-age populations are also relatively tempered, illustrating relatively greater concern with other macrotrends (Figure 1.5). Compared to global averages, employers facing the effects of aging population are more pessimistic about talent availability and expect facing bigger challenges in attracting industry talent. More encouragingly, with a shrinking labour pool, many of these companies (60%) increasingly prioritize transitioning current employees into growing roles as a key workforce strategy. Some observers have also predicted that aging high-income economies with shrinking labour forces might increasingly look to deeper automation to counterbalance some of these demographic trends.31 For example, the Future of Jobs Survey finds that employers expecting to be impacted by aging populations are more likely to accelerate process automation (79% versus 73% globally) and advance workforce augmentation (67% versus 63% globally) in the next five years. Conversely, many economies’ actual ability to leverage demographic dividends will depend on their accompanying success, or otherwise, in inclusive job creation. According to the World Bank, over the next 10 years, an unprecedented 1.2 billion young people in emerging economies will become working-age adults, while the job market in these economies is only expected to create 420 million additional jobs – risking leaving nearly 800 million young people in economic uncertainty.32 Encouragingly, employers responding to the Future of Jobs Survey that identify growing working-age populations as a driver of transformation plan to prioritize reskilling and upskilling, with 92% indicating they will be focusing on these strategies by 2030. Future of Jobs Report 2025 16