Nearly one in 10 jobs will be replaced by robots by 2030, according to a paper released by Oxford Economics. Entitled How Robots Change the World, it highlights that up to 8.5% of the global manufacturing workforce could be displaced by industrial robots just 11 years down the road.A key reason is that industrialised robots are becoming significantly cheaper, prompting companies to purchase robots rather than hire staff. Lower-income regions are more likely to feel the effects of the change as robots will be a driver in the manufacturing sector rather than higher-income regions which focus more on service and knowledge industries.
But what truly are the impacts? The paper highlights that a country that has both strong low and high income regions are likely to see worsening inequality disparity. In addition, rural regions may also get the short end of the stick where they may end up becoming neglected due to other regions that are prospering.
A lot needs to be done to ensure that the labour force impacted by the rise in robots can be sustained in other industries and sectors. It will thus be very interesting to see how policies in these countries are shaped in the future.