Extensive job loss is a reality the world
must prepare for as businesses strive towards
increased efficiency and lower cost. This
current economic downturn has only just begun, automation and robotics are
still at an infancy stage. Unemployment and retrenchment bloodbath will
continue to rise as more and more companies are employing fewer humans to get
the most done with precision.
Studies shows that 12.1 million manufacturing workers, can now produce at a level that previously would have required 20.9 million workers. Automated workers are not only found in factories. Automation is happening across all sectors: hospitals, banks, retail, mines, law firms, the stock market, restaurants and the list goes on.
According
to StatsSA (2018 Survey), “more than 6million South Africans are unemployed and
this figures represent only those that are still actively looking for a job not
those who’ve already given up. StatsSA shows unemployment has increase to 27.2%
in the second quarter of 2018. Black people and young people are still the worst
affected. StatsSA says unemployment rate among youths 15-24 years continues to
rise and is now at almost 54%. The unemployment rate for young people is more
than double that of the 45-50yrs category. Unemployment rate among 25-34yrs is
at 33.6% and 35-44yrs is at 21.3%. The
Stats reveals that 105.000 jobs were lost in the manufacturing sector, 93.000
in the service sector and 57.000 in the trade sector.”
According
to Media Reports, the job-loss bloodbath in the mining sector is intensifying as
Impala mine in Rustenburg recently announced cutting its workforce by 13000
employees over the next two years due to enormous loses. Report says only 3 out
of 10 impala mines operations are profitable. Lonmin platinum mine in Marikana
is also planning to retrench 12600 employees over a period of 3years. AngloGold
is planning to retrench 2000 employees. Eskom is also looking at retrenching 15
000 employees as a desperate move to save the state-own utility.
Most
of us are only focusing on the statistics (increase in retrenchments and
unemployment) without really asking ourselves, why? Why is unemployment and
retrenchment on the rise? There are many factors contributing to this but chief
among them is technological advancement. Modern economies are going through a
fast evolution from the worker driven economy to an automation-driven workplace
where a handful of people can perform the work that used to be carried out by
hundreds of people. Due to technological advancement, productivity is at record
levels and innovation has never been faster. As businesses strive towards
increased efficiency and lower cost, extensive job loss is a reality the world
must prepare for.
A research by Accenture reveals that 5.7 million jobs are at risk of total automation in South Africa, that’s 35 percent of all jobs which comes down to one in three jobs. This means machines can perform 75 percent of the activities that make up these jobs.
Unemployment
and retrenchment is a reality the world must prepare for. Computerization,
artificial intelligence and robotics are on the increase as more companies’
demands them. Automation system are becoming increasingly flexible and
intelligent. We’re in the wake of the forth industrial revolution and
everything is in the state of constant change. At some point in the not so
distant future, nearly every physical task conceivably can be done by robots.
It’s hard to argue against automation when statistics are clearly illustrating its potential. A Chinese factory in Dongguan City replaced 90 percent of its human workforce with machines, and it led to a staggering 250 percent increase in productivity and a significant 80 percent drop in defects.
A
report by Citigroup revealed that the downsizing of the bank workforce is about
to accelerate as more technology takes over jobs humans used to do. It is
predicted 30% of banking jobs are threatened by AI and blockchain. The smartphone
revolution has already shifted the e-commerce landscape, along with
sophisticated Apps and other technological advances in the financial sector.
Futurist
Thomas Frey, predicts a mind bulging future. He says “up to 2 billion jobs will
disappear by 2030”, that’s almost 50% of the jobs in the world. The figures are
not too far apart from The Economist Report which suggests that “47% of jobs in
the global marketplace will be automated by 2034”. Depending on who you’re
listening to, these changes can happen anytime between 10 and 20years.
The
forecasts for the future of work are quite alarming for a continent like
Africa, which is already suffering from a chronically high unemployment rate.
We’ve all been programed from childhood to go to school, get a certificate and
get a job but this model is flawed and no longer works. We should be vigilant
and open minded not to channel the next generation with the same mindset to go
to school and get a job. The future is more self-reliant and entrepreneurial. The
future will not seem so scary if talent is put to use. The future certainly has
the potential to draw more on an individual’s talents/purpose than certificates.
In
an era where machines are employable, it goes without saying that the school
system is outdated and in urgent need of refurbishment. Graduates have a
responsibility to be innovative, creative, and self-reliant. Graduates should
be globally and digitally oriented with the mindset to solve problems,
contribute to the economy and create their own work. We need new systems of
learning for both what to learn, how to learn, how to think creatively and how
to prepare for the shift in the new economy paradigm.
An extract from my upcoming book 'Disrupt Yourself Or Be Disrupted'
By Nicky Verd
Feel free to share your thoughts in the comments section below.
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Nicky Verd, a Transformational Speaker, KickAss Blogger and Prolific Writer who
is passionate about igniting human potential and empowering people to
pursue their dreams and take ownership of their lives.
She is also a Brand Ambassador for Global Startup Awards-Southern Africa and a Huffington Post Contributor. Visit her Website for more info about her work and services
Follow her on Social Media because personal transformation doesn’t just happen. It takes daily wisdom, tips and a support system.
She is also a Brand Ambassador for Global Startup Awards-Southern Africa and a Huffington Post Contributor. Visit her Website for more info about her work and services
Follow her on Social Media because personal transformation doesn’t just happen. It takes daily wisdom, tips and a support system.
"You owe yourself everything you expect from others"
