The International Labour Organization (ILO) has recently published a report titled “Changing Business and Opportunities for Employer and Business Organizations.” This report delves into the dynamics of automation and employability in the modern world.
Impact of Automation Worldwide
The report reveals that over 40% of world activities can be automated using current technology. Robotic automation is especially impactful, replacing low-skilled jobs and simple assembly tasks. Jobs involving highly structured physical activities in predictable environments such as manufacturing, retail, data collection, and processing are most likely to be affected by automation.
Automation’s Role In India
In the case of India, 51.8% of activities can potentially be automated. This development is expected to mainly affect sectors like retail, business processing outsourcing, and textiles/clothing/footwear, where a large percentage of the workforce is female. The automation trend poses an imminent threat to women than men due to their significant representation in these sectors.
Business Skill Requirements Shift With Time
The ILO report also indicates that a shift in skill requirements is noticeable among businesses worldwide. Approximately 66% of Indian businesses, 61% of American businesses, 70% of Brazilian businesses, and 65% of German businesses are looking for different skills amongst new recruits compared to what they desired three years ago. The shift in skill requirements highlights the evolving nature of industries due to advancements in technology.
| Country | Percentage Looking For Different Skills |
|---|---|
| India | 66% |
| United States | 61% |
| Brazil | 70% |
| Germany | 65% |
Five Global Trends Shaping Business Operations
The report outlines five global trends affecting the way businesses across the world operate. These are:
1. Technological Innovation: Automation and digitization are reshaping business operations and workforce skill requirements.
2. Global Economic Integration: Increasing harmonization of global governance, tax/regulatory, and business environments exposes businesses to global economy and political uncertainty.
3. Demographic and Generational Shifts: Shifts in population dynamics are reshaping work, retirement, and savings norms.
4. Sustainability Pressures: Companies are being pushed to consider financial sustainability, social impact, and environmental impact.
5. Global Shortage Of Skilled Labor: Skill gaps and mismatches are creating challenges in employment, even for entry-level positions.
Way Forward for Businesses Globally
The ILO report suggests that businesses need to innovate, adjust, and flex to stay relevant in the rapidly evolving business landscape. This will require proactive management and investment in human capital, fostering the skills and capacities necessary for responding to the current and future business needs.
