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According to Vision 2030, the Nordic Region will become the world’s most integrated and sustainable region by 2030. As the Nordic Council of Ministers’ works to accomplish its sustainability objectives, we take a look at how the region’s future of work is being shaped.
The Nordic Future of Work
1. Impact of AI and Automation
In the Nordic manufacturing and industrial sectors, the adoption of Artificial Intelligence (AI) and automation is delivering substantial benefits that enhance production quality, operational efficiency, and predictive maintenance.
Since AI-driven systems facilitate early-stage detection of defects and anomalies in the production process, they help reduce costs of rework and recalls, while enhancing customer satisfaction as products released are the ones meeting the highest quality standards.
With real-time data analysis, AI-powered systems and automation can process huge amounts of data from diverse stages of production and deal with routine tasks faster and with more efficiency, thus letting manufacturers optimise their processes dynamically.
The growing use of AI-driven predictive maintenance systems in the Nordic countries helps analyse data from equipment sensors to forecast probable failures before they happen. This proactive approach decreases maintenance costs, minimises downtime, and lengthens the lifespan of machinery.
Despite the benefits, there’s a risk of job displacement in the manufacturing and industrial sectors as AI and automation take over repetitive and routine tasks. A solution to this scenario is to invest in the workforce’s comprehensive, lifelong training programs, and get employees upskilled and reskilled to ensure they are future-ready.
2. Rise of Remote Work and Flexible Arrangements
A study by Owl Labs, State of Hybrid Work 2023, found the following:
- 63% of Nordic workers think working from home should be legalised.
- If hybrid workers were asked to attend the office full-time, 44% would comply but start seeking a new job, and 5% would quit.
- Over 1 in 2 (53%) of respondents believe traditional work expectation of their company was the reason behind making them work from the office.
The study also found that 58% were in the office full-time but just 20% wanted to be. “Coffee badging” was another trend, the study spotted, where people came to the office to “show face” for a few hours before they left.
About 38% (1 in 4) of hybrid employees were found to have “coffee badged” with an added 14% telling they are inclined to try but haven’t done it yet. Coffee badging by managers (48%) was almost 2X as individual contributors (27%).
The above figures indicate the rising popularity of remote work in the Nordic region. Though the hybrid work model, where employees have to work from the office for 2-3 days every week, has been adopted by several companies (especially those in the tech domain), the desire for flexibility at work remains high.
Employees are even ready to accept pay cuts if it gets them flexibility. 24% would accept a 15% or more pay cut for a 100% remote working location, and another 24% wouldn’t mind the same pay cut if it means having a 4-day work week. 7% of the respondents said a 20% or more pay cut was acceptable if they got flexible working hours, and another 7% said a flexible working location would make them accept the same salary decrease.
The future is likely to see more emphasis on remote work and flexible arrangements as employees are increasingly prioritising health and work-life balance.
3. Green Transition
The urgent need to decrease greenhouse gas emissions and encourage sustainable practices is the driving force behind the green transition in the Nordic countries. The region has ambitious targets for achieving carbon neutrality and renewable energy production, which is likely to have intense implications for employment and labour dynamics.
Norway, Finland, Iceland, and Denmark plan to achieve climate neutrality by 2030, 2035, 2040, and 2050 respectively. Additionally, Norway plans to become a low-emission society by 2050 (with 90-95% emission cuts). Sweden’s target is to have zero net greenhouse gas emissions by 2045. This green transition will transform the world of work and create millions of green jobs.
International Labour Organization (ILO) data suggests up to 24 million new jobs can be created by the green transition, a chunk of which will be in the Nordic region. According to ILO, green jobs are the ones connected with the environment’s conservation or restoration. They could be in traditional sectors like construction and manufacturing, or in emerging and new green sectors like recycling and energy efficiency, and renewable energy.
Since most of the green jobs are held by men, it has given rise to a gender-segregated labour market. Across OECD countries and regions, men hold 72% of green jobs. The share of green jobs held by women in 2021 or the last available year (as per OECD) stands at 29% for Iceland, Denmark, Finland, and Norway and 34% for Sweden. Unless gender biases prevalent in childhood are curbed and more girls and women are encouraged to pursue STEM occupations, this divide is set to become wider.
Another challenge is finding a skilled workforce in the Nordic region to adapt to sectoral shifts as industries like sustainable transport, renewable energy, and green technology, which are growing steadily, need people skilled in new technologies and sustainable practices.
Final Words
The Nordic future of work will be considerably influenced by the combined effects of AI and automation, the rising popularity of remote work and flexible arrangements, and the green transition.
While these factors are likely to drive economic growth and new opportunities for job creation, they have their fair share of challenges related to job displacement, gender inequality, and workforce adaptation.
Investment in the workforce’s continuing training and education, strategic regional cooperation, and inclusive policy frameworks can be crucial in navigating this transformative landscape.
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This article was written by Sonali