Tomorrow's Workplace

IMF Blog, May 31, 2017

Source details

Publication date: May 31, 2017
Theme: Millennials and the future of work; impacts of technology and economic conditions on young adults
Platform: IMFBlog — a forum for views of IMF staff and officials
Institutional note: The IMF is based in Washington D.C. and is "an organization of 191 countries, working to foster global monetary cooperation and financial stability around the world."

Traditional trajectory: Baby boomers and Generation Xers often secured regular full-time jobs with benefits such as paid leave and a generous pension.
Current reality for millennials:
- Increased difficulty securing full-time jobs.
- Greater prevalence of work in the "sharing economy."
- "About 40 percent of independent workers in the United States who make a living as freelancers are millennials," according to New York University professor Arun Sundararajan.

Timing: Millennials entered the workforce "during the most severe global economic crisis since the Great Depression."
Youth unemployment: In many countries, youth unemployment "spiked at over 20 percent of the work force," and "it remains stubbornly high."
Long-term financial challenges cited:
- Rapidly escalating cost of education.
- Delayed home ownership.
- Uncertainty of retirement income.
Consequence: "Millennials will play financial catch-up for years to come, and will bear much greater personal responsibility for their financial future than their parents," write Lisa Dettling and Joanne Hsu from the US Federal Reserve.

Positive: The digital economy "has enabled the creation of millions of new jobs."
Negative / risk: "Artificial intelligence and robotics may soon displace even complex human activities such as driving a car, providing health care, and giving legal advice."
Implication: "Staying competitive in tomorrow’s economy will therefore require lifelong learning," writes the IMF’s Nagwa Riad.

Voices: Five millennials from around the world were asked for their views.
Highlighted quote from Kathy Gong of China: "Our future depends on the young people because they are at the core of creativity, the force behind breakthrough innovation, advocates for a fairer society, and drivers of economic growth and societal improvement."
Tone: Optimism paired with determination to create a better society.

Structural shift in employment patterns toward freelance and sharing-economy work; specific statistic: "About 40 percent" of U.S. independent workers who earn a living as freelancers are millennials.
Persistent labor market damage from the global economic crisis; specific observation: youth unemployment "spiked at over 20 percent of the work force."
Millennials face compounded financial pressures — education costs, housing delays, retirement uncertainty — implying prolonged "financial catch-up."
Technological change presents both job creation and displacement risks; response emphasized: lifelong learning.

Source: IMFBlog post "Tomorrow's Workplace", May 31, 2017.

Millennials and the Future of Work - FINANCE & DEVELOPMENT June 2017 - IMF
- Millennials and the Future of Work - FINANCE & DEVELOPMENT June 2017 - IMF (Markdown version)
- Millennials and the Future of Work - FINANCE & DEVELOPMENT June 2017 - IMF (PDF)