Automation will replace millions of jobs in the coming years

Automation will replace millions of jobs in the coming years

Retail Tech Insights | Friday, March 11, 2022

In a recent analysis, the analyst predicts that automation technologies would result in the loss of 12 million jobs in Europe by 2040

FREMONT, CA: According to analyst firm Forrester Research, automation technologies would result in the loss of 12 million jobs in Europe by 2040. In a recent analysis, the firmpredicted that the pandemic has accelerated the adoption of digital technology and that the area will embrace automation to manage its demographic issues. The five major European economies - France, Germany, Italy, Spain, and the United Kingdom – are predicted to have 30 million fewer people of working age by 2050.

Investments in automation will become increasingly important in how European governments assess their competitiveness, according to the report. Healthcare and pensions, according to Forrester, will still need to be paid at a greater rate. Infrastructure and other services would also require continuous support, notwithstanding the possibility of lesser tax revenue. The irony inherent in the idea that automation would then become part of Europe's response to losing the taxes due from those who will simply cease to exist - due to the upcoming demographic crunch - as well as the taxes due from low-end jobs, was not highlighted in the report. Green energy and digital technology could help compensate for the employment lost to automation. Automation is most likely to affect mid-skill labour positions in retail, food services, leisure, and hospitality, which consist of easy, routine work.

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Workers with little bargaining power are most at risk of displacement, especially in countries where many are subject to casual employment contracts, such as zero-hour contracts in the UK, which require no guaranteed working hours, or part-time low-wage jobs, such as mini-jobs in Germany.  Routine jobs account for 38 percent of the workforce in Germany, 34 percent in France, and 31 percent in the United Kingdom. The loss of productivity caused by COVID-19, according to Michael O'Grady, principal forecast analyst at Forrester, will compel businesses to automate manual processes and improve remote work.

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