WEF 2022: Every dollar invested in social jobs to yield $2.3 return

Jobs in the US include 4.2 million teaching jobs, 1.8 million in personal care and service workers, and 900,000 jobs in healthcare.

Every dollar the US invests in social jobs would generate a multiplier effect of 2.3 times the initial investment, said a report released by the World Economic Forum (WEF) on Thursday.

The white paper called 'Jobs of Tomorrow: The Triple Returns of Social Jobs in the Economic Recovery’ said investing in education, health and care jobs can yield a triple dividend, by boosting economic activity, expanding employment opportunities and generating social mobility. 

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New modelling of the US economy suggests that investing $1 in social jobs would yield a $2.3 return, the report said, adding that the model estimates that $1.3 trillion in the social jobs of tomorrow could unlock $3.1 trillion in GDP returns and create 11 million jobs by 2030.

These jobs include 4.2 million teaching jobs, 1.8 million jobs for personal care and service workers, and 900,000 jobs in healthcare.

The report found that the associated increases in productivity, increased GDP and tighter labour markets will lead to a parallel increase in real wages. After more than two years of turmoil in the global economy and a continued uncertain outlook, leaders need to support workers in pivoting towards a future which works for everyone, it added.

According to the report, five key issues have emerged that need to be addressed to ensure better work for workers and employers alike, that is, volatility in wages and the cost of living; divergence on the demand for flexibility; silent pandemic in well-being; an erosion of diversity, equity and inclusion gains; and the need for a reskilling revolution.

The Good Work Framework, a second report released at the WEF annual meeting in Davos, drawing from the views of employers, unions and experts and developed in collaboration with Mercer, proposes enhancing job quality through five objectives and associated goals: promote fair pay and social justice; provide flexibility and protection; deliver on health and well-being; drive diversity, equity and inclusion; and foster employability and learning culture.

To support this broad agenda and to mobilize the required investments globally, the first meeting of the Jobs Consortium was held at the World Economic Forum’s Annual Meeting in Davos. The initiative comprises CEOs and ministers championing productive employment, growth in the jobs of tomorrow, new standards in the workplace and better wages for all.