WEF DAVOS

View from the top

Even amid high-profile layoffs and economic clouds, U.S. workers should be optimistic about their prospects, according to political and business leaders at Davos.

A majority of CEOs have no plans to freeze hiring or lay off workers over the next 12 months, according to new research from PricewaterhouseCoopers. “When I look at the bulk of our clients, they’re still hiring in the right areas,” said Tim Ryan, U.S. Chair at PwC.

It’s partly simple math: there are still close to two job openings for every person who’s looking for work. Longer-term demographic trends also favor workers. “We aren’t having enough babies and the U.S. immigration policy isn’t bringing in enough workers to meet the needs,” said Rachel Romer, CEO of Guild, an education, skilling, and career-mobility platform, via phone. She also noted that the current layoffs wave is concentrated in the tech and finance industries and corporate headquarters, with limited impact beyond that.

Senior executives in Davos also privately acknowledged that their efforts to drag employees back into offices more days per week are being broadly ignored. They admitted they’re unlikely to be able to enforce traditional office attendance, even as it’s less easy for workers to hop from company to company these days, theoretically diminishing some of their leverage.

U.S. Labor Secretary Martin Walsh contended that businesses need to continue increasing pay and benefits as well. “It’s going to come down to retention,” Walsh told a group of reporters. “If you have a happy workforce and a loyal workforce, then you don’t have to worry about retention.”

Business leaders in Davos discussed concerns that the accelerating application of artificial intelligence could reduce the demand for human workers. But Romer countered that AI isn’t for the foreseeable future capable of replacing many front-line workers in industries such as retail, healthcare, and services. “If you develop the right skills, the world is your oyster—and not only that, you’re going to get to do some amazing things,” said Ryan. “I think climate is exciting. I think reinventing on the backs of world class technology is exciting.”
— Kevin Delaney

Peak moment

Speaking at the Victor Pinchuk Foundation’s Ukrainian Breakfast on Thursday, Canadian Deputy Prime Minister Chrystia Freeland, invoking a Wayne Gretzky metaphor, told attendees that the “puck is going to Ukrainian victory, so let’s skate there.” Former British Prime Minister Boris Johnson added: “Tell Putin to get the puck out of Ukraine.”