An article from the Washington Post dated December 5th, 2016, stated, “Robots won’t kill the workforce. They’ll save the global economy.”
Here’s why: The workforce is aging worldwide, creating the big question – who is going to do the work? The baby-boom population is retiring from the workforce and incoming labor force participation is slowing for younger age groups.
The global workforce is aging.
Sources: Organization for Economic Cooperation and Development; The European Commission; United States Bureau of Labor Statistics; and IMF staff calculations.
The big answer may be Robots.
As Ruchir Sharma, Chief Global Strategist at Morgan Stanley Investment Management states, “If automation is displacing human workers as fast as implied in Martin Ford’s “The Rise of Robots,” then we should be seeing a negative impact on jobs.” However, that is not the case.
He adds, “According to my research, the job picture has been particularly strong in Germany, Japan and South Korea – the industrial companies that employ the most robots.” To that point, Nobel economist, Daniel Kaheman says, “In China, the robots are going to come just in time.” Currently, Beijing is offering heavy subsidies to companies involved in industrial automation.
Which means, that as the world’s workforce grows older, the economic answer to aging could be in the hands of our new partners: robots.