Eye-opening Statistics on Job Displacement Due to Automation (2023 Data)
Automation has been a worry for years, as many traditional/manual patterned workers are seen losing their jobs to machined-based labor daily.It replaces human efforts with technology and results in job displacement. Although many workers have been displaced and more are still on the verge of being replaced, digital transformation is still the bomb. As per the estimates, by 2025, 85 million jobs will be lost to automation worldwide.
The global pandemic gave rise to many job displacements, as most businesses and shopping were transacted online. It's been a struggle for recovery since the pandemic, and there's little to no hope for the reinstatement of most jobs. Outlined below are key statistics of job displacement to automation. These statistics will guide and enlighten you on the shift in skill required as new job operations emerge. Let's get started.
Pre-COVID-19 Automation Acceptance Predictions
Before the COVID-19 era, some scenarios presented automation as the future technological breakthrough.In 2017, a global management consulting company, McKinsey, reported that automation could transform the traditional (manual) workforce before 2030.Outlined below are a few of the predictions revealed in the report.
- Due to the current shift towards automation, about 39 million Americans could lose their jobs by 2030.
- 50% of hours spent on manual work-related tasks could be automated by 2030 based on the speed of acceptance of existing technology.
- About 2,000 work-related activities in over 800 professions are predicted to be automated.
- Within one decade, over 4% of occupations can be fully automated.
- Nearly 81% of predictable physical work-related tasks could be automated by adopting automation technologies.
- Mortgage origination in the US had the highest potential of 88% for automation technology to replace traditional labor.
- Jobs requiring a lower education level are more prone to being automated than those requiring a higher degree.
Furthermore, additional research by PricewaterhouseCoopers UK (PwC UK) peeks into the long-term effect of automation on jobs over various industries globally within a decade.
- 37% of workers at the time of the survey were distressed about the possibility of being deprived of their jobs due to automation.
- Over 50% of transportation and storage jobs are at risk of automation by 2030. This is the highest rate of potential job displacement across different industries.
- Adopting automation technologies will have a shallow effect on jobs in the education sector.
More recent research by the World Economic Forum on" the future of jobs" shows that the global pandemic didn't disrupt the adoption of automation. Instead, modern technologies have been accelerated, and plans have been put together to automate tasks and job operations in the next half-decade.
- 43% of employers are on the verge of reducing their workforce to accommodate technology integration.
- Over 41% of employers plan to hire contractors instead to carry out specific skills-required tasks.
- One of the expectations of employers is to reduce the number of extra roles by 6.4%.
- By 2025, the number of jobs that might be displaced due to automation is projected to reach 85 million.
- Big data: 89%
- IoT and connected devices: 84%
- Encryption and cybersecurity: 84%
- Cloud computing: 84%
- E-commerce and digital trade: 81%
- Text, image, and voice processing: 77%
- Artificial intelligence: 76%
- Power storage and generation: 66%
- Augmented and virtual reality: 57%
- Distributed ledger technology (blockchain, etc.): 56%
As businesses are drastically transitioning to digital operations, many roles have become redundant and, therefore, are at risk of being automated. Though this trend is across different industries globally, the level of impact varies by country.For instance, over 40% of Eastern Europe's economy is controlled by industrial production. At the same time, the US and UK economies are dominated by services-centric. Industrial production processes are elementary to automate; this makes workers from Eastern Europe prone to job displacement than workers from the UK and the US. Let's take a closer look at some additional statistics:
1. About 36% of organizations globally agreed in 2020 that AI will give them business automation and a better operational look in one to three years.
2. By 2030, the accounting sector of the US insurance industry will have the highest potential displacement rate of 49%.
3. By 2030, 85% of jobs that will exist haven't been designed yet.
4. There were 3.5 million industrial robots worldwide as of 2021.
5. The United States is home to about 310,700 industrial robots. This figure increases by 40,000 at least each year.
6. The global robot market is expected to increase by 26% by 2025. In the past ten years, the installation of these robots saw a 10.28% CAGR (compound annual growth rate).
7. Employee labor costs have grown by over 200% since 1990. In contrast, the price of robots dropped by 50% and above.
8. The Artificial intelligence market size in the United States alone was $119 billion in 2022. It's predicted to hit a compound annual growth rate of 38.1% from 2022 to 2030.
9. Automation could result in the loss of 73 million jobs; it's also projected to create 58 million jobs.
10. By 2026, the Autonomous car market is estimated to reach $8 billion with a compound annual growth rate of over 17%.
11. By 2020, automation is projected to eliminate 20 million manufacturing jobs in the United States.
12. In the United States, 85% of Americans only approve of automation in jobs that are hazardous to men.
13. In the United States, automation can potentially increase GDP by 5% in the next few years. The higher the productivity, the greater the GDP.
14. In 2021, China installed about 268,200 industrial bots, about 52% of all industrial robot installations globally in 2021. The number grew by 24% and 14% in Europe and the United States, respectively.
15. By 2037, the Chinese services sector would risk losing 72 million jobs to AI and other related technologies.
16. Across the 27 Organisation for Economic Co-operation and Development countries, Slovenia and Slovakia have the highest job automation rates of 44% and 42%, respectively.
17. South Korea and Finland, on the other hand, have the lowest potential job displacement rate at 22%, respectively.
Population Statistics of Workers At Risk of Displacement Due to Automation
Gender, age, and educational attainment can also determine diversity in tech and which workers are at a high risk of getting displaced due to automation and digitization.
18. Workers aged 18 and 34 are most likely affected in the US by job displacement due to automation.
19. Baby boomers are 67% likely to work in occupations with a higher risk of automation.
20. Due to automation, Latino and Black workers have a greater risk of job displacement. From the survey of an automation risk of 85%, black workers accounted for 23.91%, and Latino workers for about 30.50%.
21. By Q2 2020, nearly 25% of female workers were at risk of being ripped off their jobs, compared to 15% of men.
22. Highly educated, diversified employees are suitable to work in sectors where they won't be affected by automation.
23. Lowly educated men are more at risk of being displaced due to automation than women with the same low level of education at 52% and 29%, respectively.
Impact of COVID-19 on Job Displacement Due to Automation
A lot has not been recovered after the global pandemic, but the reinstatement of jobs has seen zero percent success, with many roles still at risk of future displacement. Some of these roles that can be displaced in the future include payroll clerks, data entry clerks, executive and accounting secretaries, auditors and accountants, assembly and factory workers, and administrative managers and business services.
24. By 2025, about 85 million jobs might be displaced by the new generation of smart machines taking over job roles.
25. About 43% of business owners report that they will cut down their workforce due to automation.
26. According to the survey, 50% of CEOs want to increase their long-term investments in digital transformation.
27. One of the core goals of 36% of CEOs is to boost their productivity via technology and automation.
28. 36% of jobs in Central and Eastern Europe affected by COVID-19 are at risk of being automated by 2030
29. Approximately 805,000 jobs in the retail and wholesale industry in Central and Eastern Europe are at risk of being displaced due to COVID-19.
To reduce the impact of displacement from automation, employers and employees have turned to online training for reskilling and upskilling.
30. By 2025, employers expect to have offered upskilling and reskilling to about 70% of their workforce.
31. Over 40% of workers are projected to need reskilling for 6 months.
32. Although employers are willing to upskill over half of their employees, only $2% are willing to learn.
33. Only 21% of businesses can use public funds for reskilling and upskilling their employees.
34. About 88% of workers who access government-based LMS tools are interested in personal developmental courses.
35. About 50% of workers displaced are arranged to be moved by employers.
Automation Statistics by Region
Automation seems to have a more significant effect on cities with many manufacturing jobs. According to statistics, some states predicted to house the highest job loss to automation are South Dakota, Nevada, Louisiana, South Carolina, Mississippi, Texas, Florida, Montana, and Alabama.
36. In Nevada, about 38- 65% of jobs are at a high risk of automation. Currently, Las Vegas in Southern Nevada has the highest risk of automation. Over 500,000 jobs in this city could be automated in the next ten years.
37. In the United States, California and Los Angeles have 6.91 robots for every 1,000 workers. Chicago has 6.01 and Houston 3.38 for every 1,000 workers.
38. Automation increases the number of jobs in the cities but decreases the number of jobs in the rural areas.
Reskilling and Upskilling to Save Jobs
Before COVID-19, many workers were already on the verge of losing their jobs to automation. The pandemic increased the situation, but there's hope - Reskilling or Upskilling of workers. According to research in 2020, 40% of the core skills of workers are projected to change five years from now. Reskilling and upskilling are not 100% getaways to all workers in the face of displacement, but it's beneficial to those willing to train.
ConclusionAutomation is one of the global evolving technologies that have taken over significant industries. By 2025, 85 million jobs are estimated to be at risk of being displaced. However, the good news, as elaborated above, is the Reskilling and upskilling of workers. So, try and get acquainted with eliminating being replaced by automation.
FAQsWhat percentage of jobs are faced with the risk of automation?It's no news that automation has hit a lot of workers hard over the years. About 25% to 30% of jobs are at risk of being automated. In the US, over 73 million jobs will be displaced by automation by 2030.
What jobs have been lost to automation?For over two decades, 1.7 million jobs have been displaced by automation. These jobs include Human computers, Lift operators, Cashiers, Warehouse workers, Factory workers, bank tellers, and travel agents.
How many jobs will be lost by 2040 to automation?In the next two decades, about 63 million jobs are estimated to be displaced by automation. Over 247 million jobs are in jeopardy across industries with a high automation rate.
Has automation created or destroyed more jobs?By 2025, according to the World Economic Forum, 97 million jobs will be created, while about 85 million will be displaced by automation. From the prediction, there will be a net gain of 12 million new jobs globally.
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