Fear of job losses gaining due to Digitization & Automation

Digitization, automation and the ecological transformation of the economy: The resulting changes in the business and employment models are disruptive.

UN experts believe that digitization will not make people unemployed. On the one hand, artificial intelligence and digitization would destroy jobs, but on the other hand, create new jobs and accelerate the ecological transformation of the economy and sustainable production processes.

Digitization, Automation, unemployment, job loss

30 Percent less work

Digitization will cost jobs, especially in the administration. With modern IT, many routine tasks and processes could be automated, he said in March in Wolfsburg before about 20,000 employees. This will be solved about semi-retirement socially acceptable, he stands to safeguard jobs until 2025. 

At the same time, however, the group must earn with his cars, because of the strict EU CO2 emission regulations, Volkswagen's share of e-cars should be around 40 percent by 2030. 

It would be difficult to cope with this only with fluctuation and partial retirement. At the same time, however, VW still lacked software specialists. In the segment, 2000 new jobs should be created

Digitization is reversing the world of work. For many workers, not only the roles in Germany will change. The retail industry was one of the first to be caught up in digitization.

 In stationery shops, people are still mostly at the cash registers, but in online retail almost all processes are already automated. And the shipping giant Amazon is now also testing stationary markets without a classic cash register system and sales staff, billed by a smartphone app and customer account.

In the area of transport and logistics, networked and automated driving, in particular, should make many jobs superfluous in the future. Already in ten years, every third truck sold in Europe could drive on the highway automated, expects the consulting firm McKinsey.

 In return, however, many new service jobs could arise around robotic cars and trucks. Even a job in the German banking industry is no longer a safe bank for a long time. More than a quarter of the jobs have been lost in the banking industry since 2000.

Whether digitization ultimately destroys more jobs or creates more jobs is the subject of countless studies. At the beginning of last year 3.4 million jobs would be endangered in the coming years due to digitization in - about every tenth job. At the same time, however, many new jobs would emerge that could not be filled in a qualified manner.

Not enough engineers and computer scientists

Many companies are already complaining about a shortage of skilled workers in this regard today. The electrical industry alone has 50,000 qualified employees. The majority of companies fear that they will not find enough engineers and computer scientists in the future. 

Nearly 60 percent of the 1350 companies and universities surveyed fear that their experience with the labor market will make them unable to meet their needs for engineers and computer scientists for the foreseeable future. 

Even now, tens of thousands of jobs remain vacant in industries such as mechanical engineering, the electrical industry, and information technology. Engineering companies, for example, have recently reported an average of 11,000 vacancies at the Federal Employment Agency, 50 percent more than in the previous year. 

The electrical industry, in turn, lacks up to 50,000 employees, ranging from engineers and software developers to skilled workers and logistics personnel. Affected is almost every company. Four out of five companies now have difficulties filling vacancies.

Technological adaptation pressure

The current study of the IAB and the Federal Institute for Vocational Education and Training concludes that digitalization will mean that around 1.3 million jobs will be lost by 2025. By 2035 it should be even four million.

Technological adaptation, Job Security

However, according to the study, too, there will be a lot of new jobs: 2.1 million by 2025 and more than 1 million by 2035. However, technology-driven adaptation pressures will be enormous - for both employees and companies. However, if the upheavals are slow enough, the study suggests, many people may be prepared for it.

Robots and Artificial Intelligence will massively change the world of work. While digitization is causing job losses, especially in the industry, demand is growing elsewhere - due to the aging of society and society because of the low number of young people in non-digitizable areas of the labor market, such as in the craft sector. 

Already skilled workers, such as plumbers, are scarce. Also in the fields of medicine and health are desperately looking for workers. The study assumes that the industry continues to contribute a high, only slightly shrinking. 

The number of jobs in production is declining, but only gradually and moderately. Unemployment, the experts predict, will remain low until the middle of the year after next.

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