Unlocking Effects of Automation on Changing Employment

The 21st century is marked by rapid advancements in automation that have affected almost every industry. Artificial intelligence (AI), machine learning (ML), robotics, and other technologies have changed the landscape of how corporations hire and manage employees. From selecting the resume using Applicant Tracking (ATS) to using AI-driven analytics to track the team's performance, almost 87% of the activities in the corporate world are automated today, as per the McKinsey & Company report.

According to the World Economic Forum, the displacement of workers due to automation could impact around 85 million jobs across small and large businesses by 2025. However, analysts predict that technologies like AI and robotics will also create new job opportunities requiring specific skills and profound training in managing automated tasks.

Automation Impacting Employment- Jobs in Flux

A recent study by the Harvard Business Review shows that 60% of global employees agree that automation creates job insecurity. On the other hand, more than 80% of business owners and operation managers believe that automation contributes to improving efficiency, productivity, and the overall success of workers.?

After 2022, most corporations adopted automation to shift operations requiring repetitive tasks. According to Research Gate, the revolution in employment will be driven by AI technologies like ChatGPT. By the end of 2025, the jobs that will be in high demand are machine learning engineers, AI ethicists, data analysts, etc.

The global study by McKinsey & Company shows that almost half of the activities workers perform to get paid can be automated using the latest technologies. It largely affects one-third of the workforce and brings a wave of substantial transformation and change in the employment rate.

Automation impacts employment in both positive and negative ways. Employment growth and decline in occupation are expected to affect various countries by the end of 2030. In India, the employment rate due to automation will increase by 129%. At the same time, the world's superpower, the United States of America, will see a minimal growth rate of 34% in the employment growth rate in the technology sector. Other countries, like Japan, China and Germany, will also see growth in employment amid the automation wave.

According to a survey conducted by McKinsey & Company in 2023, the high-demand job roles in the next seven years will be AI computer engineers, app developers, smart contractors, etc. On the other hand, creative occupations like artists, designers, and media workers will get limited advantages and can experience a decline in employment in countries like Japan.

The Future of Employment in the Automation Age

The recent advancements in technologies like AI, ML and robotics will continue to change the landscape of global employment. These technologies are ushering in the new age of automated employment, which outperforms human activities in a wide range of work activities, especially those requiring cognitive capabilities.

According to the Research Gate, estimated automation can possibly increase productivity growth by 1.4% annually. In addition, large MNCs like Accenture and Deloitte will also implement automation in employment, which includes hiring and managing the workforce. Almost half of the workforce activities can be automated by 2030, which includes 2,000 activities across 800 occupations. Automated employment will also contribute to the global economy, accounting for almost $2.7 trillion in wages.

The factors determining the extent and pace of automation in employment are technical, social, and economic ones. Apart from the technical feasibility, the cost of implementing AI and robotics-based models, providing practical training for employees, and finding the relevant skilled employees will be the major challenges for the companies. In India, the wave of automation will give highly skilled employees various opportunities to make a promising career and contribute towards the country's GDP.