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19 Statistics About Jobs Lost to Automation and The Future of Employment in 2023
Updated · Aug 11, 2023
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In the modern industrial age, cost-efficiency and productivity are triumphant. Most medium and large-scale businesses have ventured into AI and Robotics to amp up sales while lessening staffing costs.
The latest stats on the Robotics Industry show that by 2030, 90% of businesses plan to embrace robotic automation into their infrastructure, which might seem alarming for the human side of employment.
This blog post will shed light on facts and stats about automation and the future concerning job employment and losses.
Eye-Opening Jobs Lost to Automation Statistics for 2023
At the backend of labor is the Human Resources management, responsible for maintaining a functional employment system for companies.
A key part of HR management is staff retention, which statistics have shown to become effective due to automation, as 58% of companies use automation software for hiring and retention. Meanwhile, 36% of HR professionals admit they don’t have the proper technology.
The automation statistics below highlight how workers who do many repetitive tasks are the most likely to lose their jobs.
1. Automation will displace 85 million jobs globally by 2025.
Jobs lost to automation statistics for 2022 show that the world will replace 85 million jobs. 43% of employers are set to reduce their workforces to adjust to technology and automation.
The area in which company CEOs shall largely invest would be digital transformation, at 49%, signifying the likelihood that the AI industry will soon grow and take over human jobs.
💡Did You Know?
Statistics show that 35% of companies were using AI in 2022. Meanwhile, 42% of businesses were exploring the AI industry in the same year.
2. The number of jobs lost to automation by 2030 in the US is set to reach 73 million.
Data shows that as many as 73 million jobs could be lost in the US due to automation.
This figure fares better for specific countries like Germany, where only 17 million jobs will be lost. In contrast, China will take the worst hit, losing 236 million jobs in 2030.
3. A 2020 study suggested that 82% of restaurant jobs are at risk of automation.
Robot automation is a huge threat to the restaurant employment industry, as studies show t 82% of jobs in that industry could be replaced by automation. Breaking the data down shows that:
The results cause a major issue for the food industry since customer experiences and feedback are essential to the status of restaurants, with revenue growth of 80% at risk for businesses that focus on customer services.
4. 14 million robots could exist in China, making it the country with the highest level of manufacturing automation.
(The Small Business Blog, China Daily)
Jobs in China are the most affected by automation, which experienced the highest manufacturing level of around 14 million robots along its production lines.
The move is vital to changing the workplace hazard situation of the country, as the state recorded a 23.6% workplace-related death toll in 2022.
Robots and machines are vital to reducing human-induced workplace injury rates and are critical to why companies undertake automation programs.
Statistics About Jobs and Automation
Technology is slowly taking over jobs. Research has shown how automation and AI have predictably improved the productivity rates of companies by 40%.
Below are more stats discussing the dynamic between jobs and the automation industry.
5. 20.7% of Power and IT companies were recruited for at least one robotics-related position in January 2022.
The statistics show a 13% rise compared to January 2021 results, as companies in those fields are hiring for the most robotics-related positions.
The average number of robotics-related jobs advertised across all other organizations is roughly 0.6%.
🎉 Fun Fact:
Although robots replace other jobs, statistics reveal that the industry employs over 150,000 people globally to engineer and assemble robots.
6. In 2022, there were over 4 million industrial robots globally.
According to automation statistics for 2022, the number of robots in industrial settings reached over 4 million. China is dominating robotics shipments, way ahead of Europe and the US.
7. The global medical robot market is expected to reach $26.43 billion by 2027.
The global medical robot market by 2027 will reach $26.43 billion, and 18% at a CAGR. With the increase in sales of medical robots, experts expect an increase in the demand for skilled workers to operate the robots. This goes to show that some automation creates jobs.
🎉 Fun Fact:
One of the leading robotic technology in the medical field is the da Vinci Surgical System. Surgeons operate these machines, which helps them perform delicate and significantly less invasive surgeries.
Moreover, these machines have a 540-degree capability for movement, something that human hands cannot do.
See it in action by watching this short video of a grape getting sutured:
8. AI will boost 26% of GDP growth in China and 14% in North America by 2030.
AI will significantly impact the GDP in both China and North America. The two regions will account for $10.7 trillion (70%) of the global automation economy boom, estimated to be $15.7 trillion by 2030.
The financial implications of automation will likely be due to increased productivity, projected to reach $6.6 trillion. The consumption-side effects are predicted to earn $9.1 trillion.
9. 20 million manufacturing jobs will be lost to automation by 2030.
As the staggering rate of technology adoption continues, information technology statistics predict that, by 2030, around 20 million manufacturing jobs will disappear from the job market altogether.
10. 37% of workers worry they’ll lose their job due to automation.
Around 48% of the US employment-population believe that the rise in automation significantly damages their lives and livelihood.
There are clear indications that the employment market is changing. Its pace exceeds expectations, as around 37% of workers are concerned about their employment status.
AI is replacing jobs, and people with non-corporate jobs are most vulnerable to the approaching transformation of the labor market.
Automation affects various types differently. When people were asked how long they think robots would replace their jobs, they had varied answers:
This is what a welder thinks:
How about programmers?
And to top it all off:
11. Around 36 million Americans have jobs threatened by automation.
Using current technology, up to 70% of their tasks can be performed by machines. These are the jobs that are at risk of automation:
- Clerical office workers
- Short-haul truck drivers
- Cooks, servers, and other employees in food services
Aside from employment losses, the likelihood and rate of customer engagement is another aspect at risk of being lost due to this movement.
12. Above 40% of workers with low levels of education will suffer displacement by 2030, compared to 10% of workers with high-level education.
It seems unfair, but history shows the usual victim is always the ordinary man, and this scenario is no different.
Studies highlight that only more than 10% of workers with a high level of education are at risk. In comparison, automation threatens 40% of workers with lower education levels.
13. Europe will lose 12 million jobs due to automation by 2040.
The latest statistics reveal that Europe will also feel the impact of automation on job losses in the next few decades. By 2040, the region will lose 12 million jobs.
This will mainly affect positions with repetitive leisure, hospitality, food services, and retail tasks, which are heavily linked to client and customer loyalty rates, a big factor for businesses.
Germany has the highest percentage of routine jobs, at almost 38%. France is second with 34%.
Could a Machine Do Your Job?
The answer, in many cases, is a colossal “yes.” Especially for those working in any of the vulnerable sectors, such as:
- Financial services
- Transportation or construction
There seem to be people who underestimate how much their job is at risk of automation, according to a CreaditLoan survey. It showed how expectations deviate from forecasts.
14. Artificial Intelligence created 58 million new jobs in 2022.
(World Economic Forum)
The report predicts that although the shift to automation might mean the loss of some 75 million jobs, 133 million new jobs will be created as a direct consequence of the added machine workforce.
Although the development of robots creates more employment opportunities, the industry demands high-skilled workers, leaving people no choice but to retrain.
Automation Creates Jobs
Not long ago, the rapid adaptation of Automated Teller Machines (ATMs) had a similar effect on the labor market.
While the number of bank tellers per bank office initially decreased, the ATMs lowered the cost of opening new offices and increased the number of offices, leading to even more hired employees.
In recent years, around 400,000 ATMs existed in the US, while the number of bank tellers was around 500,000.
The statistics below will compound how automation might benefit the employment industry by creating more jobs and opportunities.
15. AI could create as many jobs in the UK as it could displace them over the next 20 years.
AI would boost economic growth by creating new job roles while rendering other jobs obsolete.
According to the report, AI could displace about 7 million jobs in the UK from 2017 to 2037. However, around 7.2 million new jobs will appear in the process.
Studies highlight which job sectors benefit and which will suffer from AI growth.
- Scientific and Technical Services
- Transport and Storage
- Public Administration
The report also states that this fourth industrial revolution will likely favor those with strong digital skills, creativity, and teamwork capabilities. This is because these are skills that machines would find hard to replicate.
16. 71% of the total current task hours are completed by humans, as opposed to 29% by robots.
Jobs lost to automation statistics reveal that, in 2018, about 71% of total task hours were completed by humans, while machines completed 29%.
Studies have shown that the current trend toward automation of jobs is shifting this task distribution.
Humans will likely complete 58% of task hours in the coming years, while machines will take care of the other 42%.
17. 70% of workers believe that automation is more of an opportunity to be highly skilled.
Although nearly a third of workers worry that their jobs are at risk of automation, others have decided to remain optimistic.
Of the 7,000 surveyed workers, 70% expressed hope for the future. They believe automation will give them a unique chance to be more proficient at highly skilled work. This reflects the earlier fact that workers need to retrain their skills for automation.
All About Those Soft Skills: Future Job Augmentation
Experts predict that future employment will revolve around skills that robots cannot do. As technology starts taking over jobs, humans must find innovative ways to refine the modern labor environment.
Scientists have kept up with the modern trends in technology, one of which is Artificial Intelligence. They’ve been able to make machines that perform meaningful tasks and produce remarkable results in pattern recognition and generation.
But it's too early to speculate whether “the robots are out to get us all.”
Occupations involving human touch or soft skills are an option for those with jobs at risk of automation.
The Jobs of the Future
As mentioned above, jobs in sectors where human care and understanding are needed will become more critical as automation spreads.
The US’s healthcare industry has reported 2,100 healthcare data breaches since 2009. Regardless, care for our seniors (basically, you and me in the not-so-distant future) is one of the areas where AI won’t have as significant an impact as elsewhere.
It's projected that by 2030, with the global population steadily aging, there will be at least 300 more people over 65 than in 2004.
And that will affect the number of caregivers needed, as it’s unlikely that their jobs will be eliminated by technology.
McKinsey Global Institute forecasts a rise in demand for various occupations, including the following:
- Health technicians
- Nursing assistants
- Home health aides
Personal caregivers, in general, will become one of the most sought jobs. The forecast expects growth of 50 million to 85 million jobs in the field.
Consumption, Driven by Emerging Economies
Emerging economies will feel the wave of jobs that will be automated. An increase in consumption is also projected coming from those economies' new consumer classes.
McKinsey reports a global consumption growth rate of $23 trillion between 2015 and 2030, as new consumers will affect the countries generating the income and the countries they’re importing goods from.
Among the jobs that will emerge, education and healthcare will hold leading positions. Below are forecasts painting a picture of automation and jobs going hand-in-hand.
The Age of IT Professionals
McKinsey Global report continues with projections that spending on technology could grow by more than 50% between 2015 and 2030.
They expect about half of that to come from rising information-technology services, which will create opportunities for job growth between 20 and 50 million globally.
Architects and Engineers
These two professions are also likely to increase. The required architects and engineers could grow between 80 and 200 million, depending on how infrastructure and building investments are developing.
Climate Change and Renewable Energy
Professionals engaged in solar and wind technology, mitigating the world's environmental changes, are much needed in the years to come.
Based on the forecast of McKinsey Global, this might involve hiring up to 10 million workers tasked with manufacturing, construction, and installation jobs in that sector.
Money in House Choirs
Another trend the McKinsey research considers is the marketization of housework, which previously wasn’t part of the economic equation.
As the world moves forward, female workforce participation worldwide has been rising. On the other hand, previously unpaid domestic work, such as childcare, cleaning, cooking, and gardening, will be marketed.
The marketization of these domestic works could create 50 to 90 million jobs worldwide.
How Job Automation Affects Economy Expansion
According to McKinsey, automation can boost up to 1.4% of the global economy annually.
The research admits that automation will impact economic growth significantly and will propose the mechanization of up to 30% of jobs globally by 2030. Still, researchers are confident this wouldn’t necessarily mean massive layoffs.
It could propose a transition into new positions and responsibilities for the people with jobs with the highest chances of automation.
The reality is that the employment industry will feel the effects of AI displacement. Job loss due to automation will happen one way or another.
The future of jobs involves a complex, problem-solving attitude, requiring a continuous investment in our most valuable asset - our minds.
Some will be more vulnerable and need help reconciling the new labor market. Nonetheless, change comes without asking, so be ready and do not fear those jobs lost to automation statistics.
Like any other technology-related industry, robots are also at risk of cyberattacks. People must take the necessary precautions and use cybersecurity to prevent harmful things from happening.
What percentage of jobs have been lost to automation?
25% to 30% of jobs are at high risk of being lost to automation in the US. Up to 73 million US jobs will be lost to automation by 2030.
What jobs are being replaced by technology?
Some jobs that are being replaced by technology are factory workers, drivers, receptionists, phone operators, cashiers, bank clerks and tellers, warehouse staff, pharmacy technicians, researchers, reporters, journalists, and pilots.
By 2030, what percentage of jobs will be automated?
Based on statistics on jobs lost to automation, up to 30% of global work hours could be automated by 2030.
Which jobs are at low risk of automation?
The top three include Music Therapists, Occupational Therapists, and Physical Education Specialists.
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Updated · Sep 11, 2023
Updated · Sep 05, 2023