A recent revelation by analysis firm Oxford Economics predicts an eminent shift in the manufacturing job landscape. According to the firm’s report, robots are set to replace 10% of jobs within the sector over the next decade. This implies that close to 20 million people could face unemployment due to the robotic advancements set for the period leading up to 2030.
Rapid Robotisation and Job Losses in Manufacturing
One of the key findings of the report is that every new industrial robot introduced into the manufacturing sector will result in an estimated loss of 1.6 human jobs. This indicates a significant threat to the manufacturing workforce over the coming years.
The Economic Paradigm: Benefits and Concerns of Automation
Automation isn’t entirely characterized by doom and gloom. The report suggests that while it will catalyze job losses, particularly in rural areas dependent on labor-intensive industries, it will also likely boost the economy as a whole. However, there exists a downside to this uptick – the increasing inequality. Greater economic disparity is anticipated to arise from automation, given those most vulnerable to job losses due to robots are usually found in these rural labor-intensive industries.
Global Outlook on Rising Inequality
The sentiment of increasing inequality has been echoed by global institutions, the International Monetary Fund (IMF), and the Organisation for Economic Co-operation and Development (OECD), both expressing concern over the issue. With automation expected to further stretch the gap between the rich and the poor, these organisations have noted the need for policy action to address the impending inequality crisis.
Job Displacement and the Services Sector
Beyond just manufacturing, the services sector is also set to feel the impact of robotization. As persons lose their jobs within manufacturing, they seek refuge within service-based industries. However, these same industries are bracing for the squeeze from automation as well.
Impact on Employment Categories
Interestingly, the report shows that more than half of U.S factory workers who lost their jobs to robots over the past two decades ended up in three employment categories: transport, construction and maintenance, and office and administration work.
| Employment Category | Percentage of Displaced Workers |
|---|---|
| Transport | 33% |
| Construction and maintenance | 33% |
| Office and administration work | 34% |
Alarmingly, these categories are the ones most susceptible to automation in the next decade.
World Economic Forum’s “Future of Jobs”
The World Economic Forum (WEF), in its ‘Future of Jobs’ report, has also corroborated the expected job losses due to automation. This collective knowledge continues to present a clear message: the future of jobs is in flux due to rapid robotization, prompting an urgent need to prepare for the anticipated changes.
