Great News From McKinsey: Robots Will Take 800 Million Jobs Worldwide By 2030

Stories about robots taking over from humans have become prevalent. Recently we’ve written about a new Manhattan Shake Shack replacing human cashiers with robots, killer robots (a.k.a. lethal autonomous weapons systems), a Californian real estate company replacing commission-based human agents with robots, a cocaine workshop in Brazil with robots packing 150,000 baggies a day and the first robot to be awarded citizenship which hopes for “harmony with humans”. No chance.

In June, we discussed a McKinsey & Co. report which stated that US manufacturing could be poised for a recovery and not because of Trump’s policies. Indeed, McKinsey’s rationale was based on automation weakening the case for labour arbitrage. James Manyika, McKinsey Global Institute director, commented.

“Even if we rebuild factories here and you build plants here, they’re just not going to employ thousands of people -- that just doesn’t happen. Find a factory anywhere in the world built in the last 5 years -- not many people work there.”

Pressing home the bad news for humans everywhere, both in developed and emerging nations. McKinsey has published a new report with truly dire conclusions, as Bloomberg reports.

As many as 800 million workers worldwide may lose their jobs to robots and automation by 2030, equivalent to more than a fifth of today’s global labor force. That’s according to a new report covering 46 nations and more than 800 occupations by the research arm of McKinsey & Co.

The consulting company said Wednesday that both developed and emerging countries will be impacted. Machine operators, fast-food workers and back-office employees are among those who will be most affected if automation spreads quickly through the workplace.

This fits with a Bloomberg chart we’ve used before showing industries most at risk to automation.

There is some "moderately" good news, if the robotic takeover is “less rapid” than McKinsey is currently forecasting.

some 400 million workers could still find themselves displaced by automation and would need to find new jobs over the next 13 years, the McKinsey Global Institute study found.

If you’re one of the 800 million, or maybe 400 million, displaced workers, don’t despair if you like gardening or looking after the elderly. Bloomberg continues.

The good news for those displaced is that there will be jobs for them to transition into, although in many cases they’re going to have to learn new skills to do the work. Those jobs will include health-care providers for aging populations, technology specialists and even gardeners, according to the report.

“We’re all going to have to change and learn how to do new things over time,” Michael Chui, a San Francisco-based partner at the institute, said in an interview.

Somehow, we doubt that the optimistic Mr. Chui is referring to himself, although you never know. We remember working for a high-profile British merchant bank in the 1990s, let’s just call it S.G. Warburg, which, after decades of success had lost its way slightly. The Chairman – often referred to as the “Fat Controller” by his underlings - invited the bank’s leading shareholders to dinner. We’re paraphrasing, but his message was “Don’t worry, we’ve got McKinsey coming in.” Hearing that, the major shareholders decided that the “game was up” and the bank lost its independence afterwards. Meanwhile, after another robot report from McKinsey, we like to find solace in previous predictions of labour market demise.

"We are being afflicted with a new disease of which some readers may not have heard the name, but of which they will hear a great deal in the years to come—namely, technological unemployment" - Keynes, 1930
 
“Labor will become less and less important..More and more workers will be replaced by machines. I do not see that new industries can employ everybody who wants a job” -Leontief, 1952

Technology Is The Master Of Modern Slavery

Authored by Tom Chtham via Project Chesapeake,

The recent cyber attack on computers worldwide is just the latest wakeup call to the future we are blindly building for ourselves. The vast majority of humanity embraces technology like it is their next breath of air. Without it, they feel like they will die.

Technology is a double edged sword that we wield that must be handled with care less we cut off one of our own limbs. Technology allows us to be more productive and work faster than without it but as we embrace more technology to relieve us of many manual tasks we must not let it rule our very existence.

Technology must be used as a lever, not a crutch. When we give up our ability to function in daily life and allow technology to rule our every move, we ultimately give up our freedom. To allow technology to dictate what we can do and when we can do it is to reduce ourselves to nothing more than compliant slaves to it.

When a hospital cannot perform operations or even see patients because their computers are down or we cannot communicate or travel because of computer hacking, we have allowed technology to become a crutch that prevents us from falling on our faces in its absence. When we cannot buy food or fuel or depend on electrical power for basic needs we have become too dependant on the technology we invented to assist us.

The use of technology is a good thing that allows us to move forward and build things we never dreamed of before but when it becomes a weakness, we need to reexamine our use of it. If we become so dependant on technology that we cannot function without it we are preparing ourselves for a doomsday scenario when it eventually fails and we are helpless to care for ourselves.

It is only logical to have backup systems to utilize in the event our technology fails for some reason. This is the whole reason we have people to warn us before hand such as the EMP Commission to tell us we are in danger if certain events happen. Technology provides us with many good things but it also leaves us susceptible to many bad things as well if we ignore our responsibility to use it wisely and not become too dependant on it.

Many people today can actually have withdrawal symptoms if they lose access to their technology for any length of time. This should be an alarm to society but most just brush it off as fear mongering. When the loss of technology causes a business to completely stop operations, that should be an indication they do not have sufficient backup systems to fall back on.

One of the prime tenants of the prepper movement is that they have multiple backup systems to rely on if technology stops working. This is just a logical step taken by people that have taken the time to analyze the threats posed by the loss our technology and determine action is warranted for the preservation of life following certain events. The less technology you require to take care of daily activities, the more freedom you have to live a normal life.

Most people still do not take the threat of technological disruptions to society seriously. They think that if something happens, someone will fix it and life will go on as normal. What they refuse to contemplate is if something happens and nobody can fix it. As society moves along this technological road they become more dependent on it and the risk to their lives increases as they lose the ability to do basic tasks. Hopefully this latest cyber attack will instill in people the need to have backup systems in place to continue their daily activities and live life as a free person and not be a slave to the technology they so eagerly seek.