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February 21, 2018

Robots and automation will have significant impact on labor markets by 2030

robots labor marketsThe usage of robots and automation will have significant impact on labor markets at least until 2030, according to a new study of the McKinsey Global Institutes. The automation can eliminate 24% of the probable number of working hours in Germany by that time, shows the report. According to experts, this share will reach 23% for the US, 16% for China and 9% for India.

Germany is particularly affected because the higher wages raises the incentive to replace labor with machines. Between 3 million and 12 million employees or one third of all workers will have to acquire new skills or look for work in another industry.

The McKinsey Global Institutes researchers do agree that the jobs “most susceptible to automation include physical ones in predictable environments, such as operating machinery and preparing fast food”, according to a write-up on the latest report. “Collecting and processing data are two other categories of activities that increasingly can be done better and faster with machines. This could displace large amounts of labor—for instance, in mortgage origination, paralegal work, accounting, and back-office transaction processing”, adds the report.

Affected will be jobs like clerks, but also shusters or chefs. However, due to demographic changes, the workforce in the country is expected to decline by about 3 million by 2030.

“There will be enough jobs for all of us in most scenarios”, concluded one of the authors of the report.

Jobs requiring human interaction such as doctors, lawyers, teachers and bartenders are seen as less prone to automation. Specialised lower-wage jobs, such as gardening, plumbing and care work, will also be less affected by automation.

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About Silvia Hristova

My name is Silvia Hristova. I am 44 year-old woman from Varna, Bulgaria, working as author and analyzes contributor of Economics Gazette Journal. I graduated in University of Economics in Varna and have long experience, as finance and business analyst in local investment funds and banks. Also has long time experience as freelance economy and finance journalist.