New Delhi: Machine Learning and Artificial Intelligence are raking up the ranks quickly, and machines could well take up quite a few jobs as well. A new report by Mckinsey has found out that as many as 800 million workers could lose their jobs and replaced due to automation by 2030.

On the other side the economic growth, rising productivity and other forces could more than offset the losses, as per the report.

With the advent of software that can respond to customer’s inquiries and robots that can provide services within a flip of a second, mid-level workers will need to upgrade themselves to save their jobs.  

In a study early this year, McKinsey found that about half of all work activities globally have the technological potential to be automated, but the latest report provides a better assessment based on economic, social and technical factors.

Globally, 800 million workers could be displaced and as many as 375 million may need to learn new skills for new occupational categories. Advanced economies such as the U.S. that have higher wages are more vulnerable to the adoption of labour-saving technology.

 
 Maintaining full employment will require a huge overhaul of the economy and labour market that rivals or exceeds the nation’s massive shifts from agriculture- and manufacturing-dominated societies over the past 165 years, the report says.

Machines and artificial intelligence are already spreading rapidly with the advent of with self-driving cars, software that can respond to customer service inquiries and robots that can man assembly lines, flip hamburgers and check store inventory.

Globally, up to 800 million workers could be displaced and as many as 375 million may need to learn new skills for new occupational categories. Advanced economies such as the U.S. that have higher wages are more vulnerable to the adoption of labour-saving technology.

The employment growth needed to replace the jobs eradicated will come in part from automation itself — the new workers needed to operate the machines, as well as the increased productivity and economic growth that automation will generate through bigger company profits and higher wages. 

Also, however, jobs will be created from rising incomes and consumption, an aging population that will demand more health care professionals and investment in infrastructure and renewable energy, the study says.

Jobs most susceptible to automation are physical ones in predictable environments. Those include workers who operate machinery, prepare fast food, collect and process data, originate mortgages and do paralegal and accounting work.

Jobs safest from the effects of automation involve managing people, high-level expertise and unpredictable environments. They include engineers, scientists, health care providers, educators and IT professionals, as well as gardeners, plumbers and elder care providers.

 
As a result, high-wage workers are expected to be less affected by the sweeping changes because they have skills that machines can’t replace. Low-wage jobs also could grow rapidly, partly because they cost employers less and so are often not worth supplanting with technology, while many are in health care, such as home health aides. That means middle-wage jobs will continue to decline, widening the divide between wealthy and low-income households, the report says.

The biggest challenge will be retraining millions of workers midcareer. Governments and businesses already have fallen short in the retraining of workers who lost jobs in the recession of 2007 to 2009.

Governments will also need to provide income support and other assistance to help workers transition to new occupations and increase investments in infrastructure and energy to boost economic growth, the study says.

The authors acknowledge that the adoption of automation could be far slower than they anticipate, perhaps forcing fewer than 10 million workers globally to switch occupations.

Even under the more rapid spread of the technologies, the authors conclude that the six major countries they studied in detail should be at or near full employment by 2030. But if many displaced workers don’t have new jobs within a year, unemployment could rise and dampen wage growth in the short and medium term.

References:
https://www.usatoday.com
http://www.zerohedge.com
https://www.wallstreetkarma.com
https://hardware.slashdot.org