Future of Jobs Report 2025

Page 59 of 290 · WEF_Future_of_Jobs_Report_2025.pdf

Geographically, surveyed companies operating in 32 economies highlight wage alignment with productivity and performance as the key factor, while respondents in 28 economies indicate a greater focus on competition for talent when determining wage strategies. Wage inequalities (cited by 33% of respondents), government regulations and collective bargaining (32%), and cost reduction strategies (30%) are also influencing compensation decisions globally. Share of employers surveyed (%)0 40 60 80 100 20 Wage strategies, 2025-2030 FIGURE 4.11 Source World Economic Forum, Future of Jobs Survey 2024. 77% 71% 33% 32% 30%Share of employers surveyed expecting the stated factor will drive decisions in designing wage and compensation policies over the 2025 to 2030 period. Aligning wages with workers’ productivity and performance Competing for retaining talent and skills Reducing wage inequalities and supporting workers’ purchasing power Aligning wages with government regulations and collective bargaining agreements Reducing costs Wage premium for skills and experience BOX 4.2 In collaboration with ADP Research Given shifting global workforce dynamics, how are differences in education, training and experience reflected in wages? Analysis conducted by ADP Research for the Future of Jobs Report 2025 addresses this question by analysing monthly wage data of workers in the United States according to Occupation Information Network (O*NET) job zones. The O*NET data assigns all occupations to job zones, from entry-level positions needing minimal preparation (Job zone 1) to highly specialized roles with extensive preparation, usually demanding graduate school education and extensive job training and work experience (Job zone 5). The research analyses wages at each job zone to calculate a wage premium from one level of workforce preparedness to another. Workers’ median and mean wages increase as the job zone level increases (Figure B4.2A). On average, the median wage is 37% higher for each job zone level (Figure B4.2B). The highest gap between levels is 48%, which is the difference in median wage between job zone 3, where workers such as Security Guards and Dental Laboratory Technicians usually receive vocational training or an associate degree, and job zone 4, where workers have considerable preparation for the job. The lowest median wage premium gap is 27%, between job zone 4 and job zone 5, which is made up of primarily specialized roles that require extensive training, such as Pharmacists, Lawyers and Biologists. The mean wage premium is higher, averaging 58% per job zone level, with the marginal premium spiking the jump from jobs requiring considerable preparation, such as Real Estate Brokers and Sales Managers, to specialized roles with extensive preparation, the highest level. The gap between the median and mean wage premium – the two curves in Figures B4.2A and B – indicates that there exists a wide pay range within the same job zone, and that wider pay ranges are more prevalent for workers in more specialized roles. Future of Jobs Report 2025 59
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