Unemployment Current Affairs - 2020
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On January 22, 2020, India joined Reskilling Revolution initiative of World Economic Forum. It helps economies to adopt o changes being introduced by Fourth Industrial Revolution.
India joined the Reskilling Revolution Initiative launched at the World Economic Forum as founding member. The other founding members include US, UAE, Russia, Pakistan, France and Brazil. The initiative aims at providing better education, jobs and skills for more than 1 billion people in the world by 2030.
According to the World Economic Forum, around 75 million jobs are to displaced. This is predominantly because of technological integration and automation. The transformation will also create large scale unemployment affecting the labour population greatly. It will also create demand for 133 million new jobs. Therefore, it is essential to shift the labour population towards the requirement of the technology upgrade. In order to achieve this, the Reskilling Revolution Platform has been launched.
In order to achieve the reskilling, the World Economic Forum also released a report namely “Jobs of Tomorrow: Mapping Opportunity in the New Economy”. The report mapped 96 new emerging jobs in seven fastest growing professions based on new technologies.
Fourth Industrial Revolution
The transformation is happening mainly due to fourth industrial revolution. Fourth Industrial Revolution is the developing environment where robotics, Internet of Things and Artificial Intelligence are changing the lives of people globally. It has increased machine operated automation and changed the labour force involved.
Tags: 4th Industrial Revolution • Artificial Intelligence • Fourth Industrial Revolution • labour market • Labour Reforms
On January 6, 2020, the World Bank released its study on how FDI flows are affected in the world due to automation. The study concluded that automation will certainly disrupt the flow of capital from rich countries to poor countries. On the other hand, the poor countries can gain from automation if adopted at the right time.
The study has used data of FDI (Foreign Direct Investment) and industrial robot usages between 2004 and 2015. It reports that during this period, High Income Countries (HIC) saw the highest FDI outflows. The flow of the FDI were measured in terms of project announcements in middle income countries (MIC) and low-income countries (LIC).
The MIC and LIC witnessed highest FDI inflows during the period of project announcements. Later, it reached a saturation level and began to decline!
Throughout the study the automation processes were measured in terms of number robots employed per 1000 employees.
The study also reports that of all the sectors, automation was maximum in electronic and automobile industries and least in textiles.
The study found that the FDI flows from a HIC to a LIC reduced as automation increased. For a 10% increase of automation in a HIC, the flow of FDIs into LMIC increased by 5.5%. After a certain threshold the inflows saturated and, in some cases, started to decline as well!