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Feb 28, 2024
Automation and job displacement are increasingly becoming one of the major topics of discussion nowadays. Automation has become a major trend in many industries because it increases efficiency and productivity. However, this shift towards automation has a negative side effect, as it can lead to job displacement.
Automation has already had a significant impact on many sectors, and the trend is expected to continue as technology advances. This is especially true in industries such as manufacturing and retail, where machines have replaced human labour as devices can perform tasks faster and more accurately than humans.
Despite the potential benefits of automation, it could result in a reduction of the labour force and a displacement of workers, leading to economic and social challenges.
As technology continues to evolve, it is estimated that automation will lead to a significant loss of jobs in the near future and that nearly 20 million jobs will be replaced by automation by 2024.
This is a huge number, and it is crucial to prepare for the potential impacts of automation on the workforce. However, many experts believe that automation could actually create more jobs, as companies would need to hire new employees to manage automation systems and robots.
This blog checks into jobs lost to automation statistics, and high-risk occupations due to automation shedding light on the evolving employment landscape and its implications for individuals and society.
Automation is the use of machines, technology, and software to automate tasks that would otherwise be done by humans. Automation involves the development of systems and software capable of performing repetitive, rule-based, or data-driven activities with minimal human intervention. Automation has become increasingly prevalent in various industries, transforming how we work and interact with technology. Manufacturing, transportation, healthcare, and retail have been utilizing automation for centuries, and its use has increased significantly in recent years.
There are three main types of automation. The first is;
Automation is expected to have a significant impact on the workforce, as it is projected to eliminate millions of jobs in the coming years. The impact of automation on human labour can vary depending on the industry and job role. However, it is likely to lead to job losses in certain sectors, as machines and algorithms can perform tasks with greater speed and accuracy than humans. While other jobs may require new skills or training to adapt to changing technologies.
As automation could contribute to job displacement and income inequality, it is important to consider the potential implications of automation and explore strategies to support workers who may be impacted.
Factors driving automation adoption in industries include:
Automation has been steadily increasing in recent decades, with an estimated 1.8 million robots being deployed in industrial settings across the world in 2020. This has had a significant effect on the global job market, as more and more jobs are being replaced by automation. In the US alone, an estimated 800,000 jobs have been lost due to automation since the year 2000.
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Automation has had a dramatic impact on the global job market, creating both job losses and opportunities for new roles. More than 247 million jobs are projected to be at risk across industries more susceptible to automation, such as construction and agriculture, by 2040, according to a report. Below, we have divided these statistics by the most affected industry. Let’s check it out.
According to a report by the McKinsey Global Institute, automation is expected to affect up to 800 million jobs in the retail and customer service sector by 2030. This is due to the increasing use of AI and robotic process automation (RPA) in customer service and retail operations.
According to the World Economic Forum, the retail industry is estimated to be one of the most affected by automation, with an estimated 41 million jobs at risk by 2040.
Automated customer service technologies such as chatbots, virtual assistants, and voice recognition systems are becoming increasingly popular, and are expected to replace many customer service jobs in the near future.
Automation is expected to reduce the need for workers in areas such as checkout and inventory management while creating new opportunities in areas such as data analysis and customer service. Additionally, automation is expected to lead to fewer hours for existing workers in the retail sector, as well as reduced wages.
AI could potentially replace many of the jobs in the automotive industry, from assembly line workers to technicians. It could also enable car manufacturers to produce more efficient vehicles with fewer resources and fewer emissions. As AI continues to advance, it will be interesting to see how it affects the automotive industry and its workforce in the near future.
Automated vehicle technology is being developed to reduce human error in driving and make the roads safer for everyone. AI is also being used to develop smarter cars that can predict traffic patterns and provide better navigation solutions.
The automotive industry has seen the highest levels of automation, with robots increasing their share of total employment in the automotive sector from 22% in 2014 to 28% in 2020. The impact of AI on the automotive sector is far-reaching and will continue to shape the future of this industry for years to come.
According to the International Federation of Robotics, the number of industrial robots in the automotive industry increased from approximately 1.3 million in 2014 to 1.8 million in 2020. In the USA, the number of industrial robots in the automotive sector increased from about 0.7 million in 2014 to 1.1 million in 2020.
In 2018, autonomous driving was worth $5.6 billion and is expected to reach $60 billion in 2030. By 2030, experts predict that AI could replace up to 300 million full-time jobs in the automotive industry.
According to a recent study, an estimated 20 million manufacturing jobs could be lost by 2030 due to automation. 25% of American jobs are highly susceptible to automation, with 73 million jobs potentially lost in the U.S. over the next five years.
The Organisation for Economic Co-operation and Development (OECD) estimates that up to 14 percent of jobs in the OECD countries are at high risk of automation.
The International Labour Organisation estimates that up to 20% of jobs worldwide could be automated by 2030. To cope with such a transformation, constant skilling, reskilling and upskilling of the existing and future workforce is extremely important.
The new jobs, however, are likely to move away from traditional manufacturing and instead be added in the areas of IoT, mechatronics, robotics, 3D printing, AI, machine and deep learning, analytics, virtual collaboration, automotive design and computational thinking.
Automation is expected to have a significant impact on the transportation and logistics industry in the coming years. According to the World Economic Forum, the transportation industry is expected to see a significant decrease in the number of jobs due to automation, with an estimated 15 million jobs at risk of being replaced by automation by 2030.
Automated cars, trucks, ships, and drones are becoming increasingly common and are expected to take over many transportation tasks that are currently performed by human workers.
Automated systems, such as logistics and tracking systems, are also expected to replace many transportation jobs. An estimated 8 million jobs are at risk of being automated by 2030 in the logistics industry. This is due to the increasing use of AI and robotic process automation (RPA) in the logistics industry.
Automation is expected to reduce the need for workers in areas such as supply chain management while creating new opportunities in areas such as data analysis and customer service.
Automation is expected to have a significant impact on the financial services industry in the coming years.
According to the World Economic Forum, the financial services industry is expected to see a decrease in the number of jobs due to automation, with an estimated 10 million jobs in the financial services industry at risk of being replaced by automation by 2030.
Automated systems, such as robotic process automation (RPA) and artificial intelligence (AI) systems, are becoming increasingly common and are expected to take over many tasks that are currently performed by human workers.
Automation is expected to reduce the need for workers in areas such as bookkeeping and accounting while creating new opportunities in areas such as data analysis and risk management.
Automation is also expected to have a significant impact on the IT industry in the coming years.
According to the World Economic Forum, the IT industry is expected to see a decrease in the number of jobs due to automation, with an estimated 9 million jobs in the IT industry at risk of being replaced by automation by 2030.
Automation is expected to reduce the need for workers in areas such as software development and IT infrastructure while creating new opportunities in areas such as data analysis and customer service.
| Country | Automation Statistics Report |
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| India |
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Top 10 Occupations At Risk of Automation
Based on industry research, the top 10 occupations at risk of automation include the following.
People Affected- Data Entry Operators & Data Analysts
People Affected- Coders, Computer Programmers, Software Engineers, Data Analysts
People Affected- Ad Copy Writers, Content Writers, Technical Writers, Journalists.
People Affected- Financial Analysts, Personal Financial Advisors, Accountants, Traders, Market Researchers.
People Affected- Paralegals, Legal Assistants.
People Affected- Graphic Designers
People Affected- Market Research Analysts.
People Affected - Customer Service Agents.
People Affected - Delivery drivers, truck drivers, and taxi drivers.
Advice: It is important for individuals in these occupations to stay informed on industry trends and acquire new skills to remain competitive in the job market. Consider exploring alternative career paths that require skills that are difficult to automate, such as critical thinking, creativity, and problem-solving.
The current employment landscape is undergoing significant transformation due to the increasing prevalence of automation. Various industries are embracing automation technologies to enhance productivity and efficiency. Manufacturing, transportation, retail, and customer service are at the forefront of automation implementation. As a result, certain job roles are becoming increasingly vulnerable to automation. Understanding the evolving employment landscape is crucial for individuals and policymakers to adapt to the changing demands of the job market and explore opportunities for upskilling and reskilling.
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As automation reshapes the job market, it is crucial to address its impact on individuals and society proactively. Mitigating job losses and embracing new opportunities require a multifaceted approach that involves policy measures, exploring emerging job sectors, and considering ethical considerations.
To decrease job loss due to automation statistics, it becomes crucial to reimagine the workforce and equip individuals with the necessary skills to thrive in the automated era.
These platforms provide convenient and accessible opportunities for learning, enabling workers to adapt to the evolving demands of the job market. Edoxi offers VMware vRealize Automation Training, Automation testing, and various other automation courses. By embracing online education, individuals can gain the knowledge and expertise required to transition into new roles and industries.
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Automation has made a significant impact on the job market, both positively and negatively. On the one hand, automation has led to increased productivity and efficiency in many industries, allowing companies to produce more goods and services with fewer employees.
This has led to job losses in certain sectors, such as manufacturing and assembly line work. On the other hand, automation has also created new job opportunities in fields such as technology, programming, and robotics. Additionally, it has led to the development of new industries and businesses.
The overall impact of automation on the job market is complex and varies by industry, job type, and location. In general, jobs that involve repetitive tasks or can be easily replaced by machines are more at risk, while jobs that require human skills such as creativity, problem-solving, and social interaction are less likely to be automated.
However, by embracing proactive measures, such as reskilling, policy interventions, and ethical considerations, we can navigate the challenges and open doors to the opportunities presented by automation, creating a sustainable and inclusive future of work.
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