The novel coronavirus has thrust the “future of work” to the forefront for the 165 million people in today’s U.S. labor force with shocking speed. Cognizant’s Q1 Jobs of the Future (CJoF) Index provides a glimpse into the profound impact that is beginning to emerge.
The CJoF Index started the year with unemployment at its lowest point in decades (3.8% quarterly average) and the economy and stock market continuing their decade-long expansion. However, in mid-March economic growth came to a sudden stop as local and state governments implemented social distancing policies and closed non-essential businesses to mitigate the impact of the health crisis.
The impact was immediate. This sudden shutdown of most of the U.S. economy caused unemployment claims to skyrocket in the last week of March to around 6.65 million, for a total of 10 million for the month. The Dow Jones Industrial Average experienced its worst drop in March since the 2008 collapse of Lehman Brothers.
While the full longer-term implications are still unknown, it is likely that the pandemic will accelerate digital and workforce transformation and increase the demand for digitally enabled jobs in the future.
The COVID effect
The CJoF Index tracks quarterly postings for 50 digitally enabled jobs identified by Cognizant’s Center for the Future of Work. The index monitors trends in eight families of jobs, all of which saw year-on-year growth. These eight families are Algorithms, Automation and AI; Customer Experience; Environment; Fitness and Wellness; Healthcare; Legal and Financial Services; Transport; and Work Culture.
The Q1 index shows quarterly growth slowing from the rate achieved in the previous two quarters. Although the CJoF Index increased 7.1%, from 1.89 in Q4 2019 to 2.02 in Q1 2020, this rise was lower than the 8.1% quarterly rate seen in the two previous quarters, when the index grew faster than the All Burning Glass Jobs Index.
Before COVID-19 hit, the first-quarter CJoF Index was on the rise through January and February compared with previous quarters. In the first quarter, it rose a hefty 37.2%, from 1.47 in Q1 2019 to 2.02 in Q1 2020. The first quarter’s year-on-year growth even exceeded the 31.6% annual increase recorded in Q1 2019. The March year-on-year numbers revealed a pandemic-influenced course correction: the CJoF Index jumped 23.6%, while the All Burning Glass Jobs index increased by 13.7%.