As companies struggle to find ways to tackle a nationwide labor shortage, automation is becoming increasingly attractive.
Initially seen as a job killer, automation may in fact be the answer to an ongoing labor shortage, particularly in the manufacturing sector, which is expected to have 2.1 million job vacancies by 2030, according to the Study May 2021 By Deloitte and the National Association of Manufacturers (NAM).
“You have to start thinking that bots can do some of these jobs,” Lauren Hayne, head of advisor relations at ROBO Global, an investment firm that specializes in automated investing, told Yahoo Finance Live (video above).
In July 2022, nearly six million workers were unemployed but 10 million were vacant, according to American Chamber of Commerce. Rather than waiting to find enough workers to fill this void, Heine suggested automation as a reasonable alternative.
“Cobots (collaborative robots) is a major industry, and cobots will work alongside people – things we can’t do with just a device,” she said.
Automation creates new opportunities
Although 85 million jobs may be replaced by automation by 2025, according to The World Economic Forum’s Future of Jobs Report 202097 million new jobs may emerge from technology and may provide “better opportunities” for working professionals.
according to Harvard Business Review (Harvard Business Review) There are two reasons for that. The first is that “as more computers are trained to perform high-frequency tasks that are often assigned to entry-level employees, more roles will arise that focus on complex tasks with competitive salaries in their place.” In other words, younger professionals can have more career opportunities to choose from.
Automation could also help entry-level workers earn higher salaries, according to HBR, since new types of roles are ones that “nobody has done before,” making these individuals “more likely to be pioneers.”
US business leaders seem open to the idea – A January 2022 survey By UiPath found that 78% of CEOs in US companies stated that they are likely to invest or increase their investment in automation in their companies to overcome labor shortages.
Additionally, according to the survey, 86% of executives see automation as a way for their employees to focus on “more creative work” rather than regular, time-consuming tasks.
Several Fortune 1000 companies — including Amazon Web Services (AMZN) and IBM (IBM) — have already invested in artificial intelligence platforms along with automation focused on human resources and logistics.
Amazon, in particular, is a company that Hein sees as able to benefit from increased logistics automation, especially since attrition rate 159% last year.
“With wages ballooning, automation is going to solve that problem to some extent, you’re going to invest in robots, and you have some sort of cost control in there as opposed to labor volatility,” she said. “Robots are not going to replace people everywhere.”
Tania is a data reporter at Yahoo Finance. follow her Twitter.
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