According to the most recent Future of Jobs Report by
the World Economic Forum, 50% of employees will need new skills training by
2025 as the pace of technological innovation continues to grow. Among business
leaders, 94% say they expect employees to learn new skills while on the job,
compared to just 65% who made that claim in 2018.1
However, the amount of time it takes to reskill will
depend on the industry, according to the online learning platform Coursera. For
example, only one or two months is necessary to acquire skills in emerging
professions such as content writing, sales and marketing; in contrast, it could
take up to three months to expand skills in product development, data and
artificial intelligence. Skills needed for roles in cloud computing and
engineering could take up to four months. Among soft skills that will increase
in demand, critical thinking and problem-solving top the list. But post-pandemic,
skills in resilience, stress tolerance and flexibility also are highly valued.2
This recognition of the need for new skills training
opens up avenues for all types of people, even retirees and middle-aged
professionals who would like to change careers. After all, the acquisition of
skills based on new technologies means no one will have a huge edge in terms of
experience. Therefore, people with the ability to learn technical skills
quickly – who already possess high-value soft skills – have strong potential to
vie for a new career. If you’re thinking about making such a move, we’d be
happy to review your financial portfolio to help make sure you are on the right
path toward your retirement.
Another labor trend is the rise of remote work and
its impact on employees’ lifestyles. With the pandemic clearing the way for
many white-collar workers to work remotely, younger workers have been able to
move to more affordable locales and buy their first homes. On the other hand,
established homeowners can now consider relocating to wherever they’d like to
retire, trading in their current home equity for their retirement home – with a
plan to pay off that final mortgage while they’re still working. This way, they
can move and start enjoying a retirement lifestyle near the beach, lake or
mountains while still gainfully employed, albeit working remotely.3
Unfortunately, low-skilled, blue-collar professions
are on the other side of that coin. Many either lost jobs during the pandemic
or were classified as high-risk “essential workers.” Just because grocery store
clerks became essential, it doesn’t necessarily mean an increase in pay or
benefits. While the debate over raising the national minimum wage continues in
Washington, there’s little doubt that many low-paying jobs will always be
necessary, but experienced workers in those positions are not necessarily
low-skilled.4
For example, what is the value of caregivers who can
skillfully attend to mobility-challenged people? Or workers who serve multiple
tables of hungry and thirsty patrons who want their meal yesterday? Skills like
patience and equanimity have not traditionally received the same level of pay
as an office worker, but they are no less valued or necessary. It will be
interesting to see, post-pandemic, if these types of jobs begin to translate
into fair pay and good benefits.5
After decades of steady decline, labor unions are
hoping for greater respect and participation moving forward – based on support
by President Joe Biden’s administration. Today, only one in five households has
a union member, and the Economic Policy Institute estimates the decline of
unions translates to an average loss of $3,250 per year for a full-time worker.
Biden is advocating passage of the Protecting the Right to Organize (PRO) bill,
which would abolish state laws that ban mandatory collection of dues as a
condition of employment, penalize businesses that retaliate among union drives
and extend federal labor rights to independent contract workers. So far, the
House has approved the legislation, but it faces a more difficult path in the
Senate.6
1 Kate Whiting. World
Economic Forum. Oct. 21, 2020. “These are the top 10 job skills of tomorrow –
and how long it takes to learn them.” https://www.weforum.org/agenda/2020/10/top-10-work-skills-of-tomorrow-how-long-it-takes-to-learn-them/.
Accessed April 30, 2021.
2 Ibid.
3 Liam Dillon. Los Angeles Times. April 30, 2021.
“The remote work revolution is transforming, and unsettling, resort areas like
Lake Tahoe.” https://www.latimes.com/homeless-housing/story/2021-04-30/covid-wfh-boosts-palm-springs-lake-tahoe-housing-markets.
Accessed April 30, 2021.
4 Annie Lowrey. The Atlantic. April 23, 2021.
“Low-Skill Workers Aren’t a Problem to Be Fixed.” https://www.theatlantic.com/ideas/archive/2021/04/theres-no-such-thing-as-a-low-skill-worker/618674/.
Accessed April 30, 2021.
5 Ibid.
6 Steve Matthews and Payne Lubbers. Bloomberg.
April 15, 2021. “Biden Confronts Decades of Union Decline in Bid to Boost Pay.” https://www.bloomberg.com/news/articles/2021-04-15/biden-confronts-decades-of-union-decline-in-bid-to-boost-wages?sref=wFA4tJCq.
Accessed April 30, 2021.
We are an independent firm helping individuals create retirement
strategies using a variety of insurance and investment products to custom suit
their needs and objectives. This material is intended to provide general
information to help you understand basic financial planning strategies and
should not be construed as financial or investment advice. All investments are
subject to risk including the potential loss of principal. No investment
strategy can guarantee a profit or protect against loss in periods of declining
values.
The information contained in this material is believed to be
reliable, but accuracy and completeness cannot be guaranteed; it is not
intended to be used as the sole basis for financial decisions.
Investment Advisory Services are offered by Imber Financial Group, LLC., a Registered Investment Adviser firm. Insurance services are offered through Imber Wealth Advisors, Inc. Imber Financial Group, LLC. and Imber Wealth Advisors, Inc. are affiliated companies
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