Business automation and disappearing jobs

Pandemic!

This is the buzzword of the past year, on the lips of everyone, whether entrepreneurs or employees. It is no secret that we are heading toward a digital economy in which the analysis and interpretation of data collected from various channels is at the heart of any business with a future. This concept is also known as Industry 4.0. It is a name we may have grown used to, but one that is beginning to have visible effects on the economy.

We are seeing how products and services that we thought could not be offered to customers through media channels have been adapted to the pandemic situation. This has had the effect of opening up unprecedented horizons and opportunities, with automation of processes and delivery methods experiencing substantial growth in the last year.

A study by the IMF demonstrates that previous pandemics have had the same effect – increasing automation.

In 1920, after the Spanish flu, in the US, telephone operators were heavily affected by the implemented automation, being the most popular job among American women.

On the other side of the coin, if we return to our days, we observe how restaurants, stores, supermarkets, etc. have created new jobs through home delivery services.

Even though in some areas of activity the number of jobs will decrease, in others it will increase. It is important to identify areas where there is a prospect of a new job or skill and to be willing to learn and assimilate the necessary knowledge. 

It is clear that in the woodworking industry, where we encounter the concept of unpredictable physical labor, we will continue to need people to take on roles where their expertise is needed. This expertise is determined by acquired skills and cannot be replaced by artificial intelligence, machine learning, software, etc.

However, it is equally obvious that many of the operations performed by humans are today successfully performed by increasingly capable and safer machines.

Liberalization and access to information, which were previously reserved for large players, have allowed the development of highly reliable machinery and equipment at low costs. This has helped small players in a market where stability and productivity are very important, and human capital is often limited.

EDUCATION 4.0 – OUR NEW JOB IS TO LEARN!

1. Let's adapt the skills training system – the formal one in schools and universities, but also in companies – with the new jobs and roles required by the labor market. We are already witnessing a redesign of jobs due to the remote work variable but we have also started to include automation. Jobs are starting to look different. Skills training must keep up.
2. Let's implement the concept of life long learning. Education seen up to the age of 25 is an outdated concept. In such a dynamic economic environment where even WE, as customers, change our needs and desires so suddenly and drastically, we impose a maximum speed of change. We must keep up.
3. Ethics in AI and machine learning. Let's not wait for critical situations to raise the issue of ethics, especially when we talk about AI and machine learning. Why? Artificial intelligence and machine learning mean predictions based on data analysis. These will never be objective enough, being influenced by the designer and programmer of the entire process and the way he sees things. He is the one who defines and implements the rules that will apply. Ethics must be the basis of such decisions.

What does the future of jobs look like?

The World Economic Forum highlights the trend of change in its Future of Jobs report from October 2020. Globally, 2025 million jobs will disappear by 85, but another 97 million jobs will be created. As the graph below shows, the direction is to replace areas where routine, algorithm and predictability meet.

The conclusion?

To survive in a rapidly evolving and changing environment, flexibility and rapid adaptation are required. Companies that can pivot quickly and change the way they approach development in the fast-paced world will win. Continuous learning is one of the most important aspects of our time.