“Automation” is the technological factor with the biggest influence on the labor market for the next 5 years

When asked which technological factors would have the largest impact the labor market in the next 5 years,” 59% of respondents selected “Robots and Automation. Additionally, the telecommunications boom most evidently in “mobile internet, cloud technology” (57%) as well as “processing power, big data” (54%) is also forecasted to create profound change.

 Recruitment demands will change as a result of shifting nature of work and labor structure

According to HR professionals, the labor market will transform dramatically under the effect of socio-economic factors related to the nature of jobs and labor structure. “Change in natures of work, flexible work” was agreed by 66% to stimulate change, followed by “the development of elite labor” (55%) and “the development of the young demographic” (54%).

More notably, 40% claimed “the need for privacy” and “greater awareness of environmental responsibilities” would have substantial impact on recruitment demands. Up to one-fifth stated the participation of women would undoubtedly change the labor market.

High Tech & Engineering is the most promising job category in the near future

Around 90% of respondents were certain that “High Tech, Engineering” and “Computer & Technology” would have increasing demand in the near future. Another category with great growing prospect in the next 5 years is “Arts, Design, Entertainment, Sports & Media” (62%).

On the other hand, certain job categories would experience lower demand, such as “Administrative & Clerical” (42%). Despite being in the top 3 categories in terms of increasing recruitment demand in 2018 according to a recent report by VietnamWorks, in longer term such repetitive jobs were found to be susceptible to replacement by machinery.

“Problem sensitivity” is the most essential ability for future jobseekers

The changes in the labor market create new jobs with different competencies. Consequently, 87% of respondents would expect a demonstrated “problem sensitivity” from their candidates, followed by “creativity” (86%) and “cognitive flexibility” (85%). On the other hand, “manual dexterity and precision” (15%) is regarded with little importance.

“Active learning” becomes the most essential basic skill for employees

87% of HR professionals selected “active learning” as the most needed skill for employees, followed by “ICT literacy” (77%), as well as “monitoring self and others” (77%). Communication skills such as verbal communication, writing and reading comprehension are no longer prioritized.

“Cooperation” is the most important cross-functional skill

Technological factors are changing the nature of many jobs, which leads to a rising demand for complex skills. When asked to predict the top three skills needed for an employee to further one’s career in the future, “cooperate with others”, defined as adjusting actions in relation to others’ actions, was selected by 79%. Second on the list is “people management”, followed by “emotional intelligence” and “judgement and decision making”, accounting for over 60% each.

Employers prioritize “developing automation” and “recruiting employees with skills suitable for new technology”

87% of surveyed HR professionals claimed they prioritized “developing automation” or “recruiting full-time employees possessing skills suitable for new technology”. Many also paid attention to improving the quality of the current workforce (82%). For those who selected they would implement “training for current employees”, 47% said they would “train internally” while only 20% would “train through course providers”

 Recommendation from Navigos Group

Gaku Echizenya, CEO of Navigos Group, said: “The labor market is experiencing unprecedented changes with the fourth industrial revolution. This means businesses have to constantly improve first in understanding the market by updating from reputable sources, from which they can promptly respond to change and build effective recruitment strategies. For employees, an active learning attitude, digital skills and soft skills such as teamwork and management are competitive advantages in the digital era. At the same time, it is necessary for schools to adjust their enrollment plan and curriculum to improve students’ employ-ability. This includes looking closely at future career prospects, skill trends and encouraging students to strengthen their knowledge and skills through hands-on experience.”