Automation of work through artificial intelligence, robotics, and the internet of things will enhance productivity and profitability. Still, it will jeopardize the solidity of mid and low skilled jobs in middle income and developing countries.
Transforming from Labor to Automation
As technology mounts as a bigger disruptive force compared to the inclination of good capital, developing countries need to consider how technological innovations will influence labor trends.
Some of the already developed countries have enhanced their global contribution to producing value-added products, and are now enjoying a competitive edge in popular brands and technology. Such countries today pride themselves in having made huge progress in hoisting their citizens of poverty.
China, for instance, has achieved this by elevating worker productivity by enhancing their skills or offering training to instill in them new skills, technology, and higher wages. This trend, however, is influencing manufacturers to transfer low skill and redundant manufacturing processes to Southeast Asia.
Transfer of manufacturing processes has been an economic windfall for workers in middle-income countries such as Indonesia and Vietnam. Even then, manufacturers are racing to find affordable labor reduces the chances of long term prosperity to any single country.
In the developing countries, governments should manage the revenue of momentary labor cost to industrial upgrading, infrastructure investment, and worker up-skilling, which China has managed with ease. The continued evolution and advancement of the internet of things and robotics amid other technologies will influence jobs in almost all skill levels.
After many years of globalization, an indefinite economy in which manufacturing and capital transit freely to various destinations with a high return on investment and low structural costs have emerged. This has necessitated a worldwide economic restructuring pattern which is stimulating growth opportunities for the developing countries.
Human labor has received rewards for their commitment to developing their education and skill. Considering the never-ending technological advancements and their impact on society, considering how the next phase of worldwide evolution and its impact on the political scene.
Automation is expected to be a major disruptive force by social, economic, and political standards. Only a few developing and already developed countries will break away from this challenge. Some developed countries are currently experiencing a political wave inflamed by outrage from workers who have been removed from their stable manufacturing jobs.
Such actions may be witnessed in countries that are currently entangled in loyalist politics. The automation of work and increasing population will result in an unemployment crisis with major ramifications for household political stability.
Many governments today are trying to find strategies to facilitate the generation of well-paying jobs for the numerous graduates flooding the job market today. Still, more workers are advancing their skills in preparation for more lucrative job opportunities and governments should devise sustainable strategies for job creation.
Rising Unemployment and Skill Deficiency
In some developing countries, approximately 1 million people will enter the employment age monthly. Over 7 million new jobs are required annually to cater to the employment needs in India alone for instance.
Many employable people in India are losing hope of getting employed and while there are no official statistics, many of these people work in the informal sectors with no contracts, a clear indication that India could be on the verge of experiencing growing joblessness.
Lack of sufficient skills in a big percentage of the workforce in India is barring the country’s efforts to speed up development of high productivity job opportunities. Large scale manufacturers both internationally and domestically owned are, therefore adopting industrial robots for sale to guarantee a reliable, consistent, and effective production.
Urbanization has been a big contributor to the employment challenge in India and other developing countries. A big number of rural workers albeit lacking appropriate skills have moved to urban centers expecting higher paying jobs. In the past, these workers could find menial jobs in industries. However, entrepreneurs have today adopted robots to execute low skilled and redundant tasks that the unskilled workers were employed to do.
Technological evolution will continue to cause disruptions to the formerly stable employment life in various countries. Governments must adopt robust sustainable strategies to manage the growing unemployment