Automation may require as many as 375 million people to find new jobs by 2030 - Quartz - 0 views
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y 2030, up to 30% of the hours worked globally could be automated, according to a new report by the McKinsey Global Institute. Analysts in the consultancy’s research arm estimate that between 400 million and 800 million people could find themselves displaced by automation and in need of new jobs, depending on how quickly new technologies are adopted. Of this group, as many as 375 million people—about 14% of the global workforce—may need to completely switch occupational categories and learn a new set of skills to find work.
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Notably, McKinsey argues that demand for work will increase as automation grows. Technology will drive productivity growth, which will in turn lead to rising incomes and consumption, especially in developing countries. Meanwhile, there will be more jobs in health care to meet the demands of aging societies and more investment in infrastructure and energy.
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For these benefits to be realised, everyone needs to gain new skills, with governments and private companies taking on the unprecedented task of retraining millions of people in the middle of their careers. “Even if there is enough work to ensure full employment by 2030, major transitions lie ahead that could match or even exceed the scale of historical shifts out of agriculture and manufacturing,” the report says.
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There will be other challenges too. In advanced economies, there is a risk that automation will worsen the trend of income polarization, with demand for high-wage jobs increasing, and demand for medium-wage jobs falling. Also, displaced workers will need to find jobs quickly—preferably within a year—otherwise frictional unemployment (lots of people moving between jobs) could put downward pressure on wages.
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"Fears that automation and machine learning will cause massive job losses and make people obsolete are starting to wane (well, unless you ask Stephen Hawking). Instead, there's a more optimistic prediction taking hold: that the new technology could actually lead to job gains. But the transition won't be easy."