Automation can cost 1 million jobs but create as many by 2030

According to a report presented this Thursday, adopting automation in Portugal can potentially lead to a loss of around 1.1 million jobs in the industry and commerce by 2030 but it may also create others in health, social assistance, science and construction.

The report from CIP – Business Confederation in Portugal, which is presented on Thursday in Lisbon at a conference on “The Future of Employment in Portugal”, said that “Portugal has a relatively high potential for automation due to the weight of industry and repetitive tasks recorded in various sectors,” and points to the digital transformation of Portugal’s society and economy as “a huge opportunity.”

“It is estimated that about 50% of the time spent in current labour activities could be automated with existing technologies, which represents a high potential for automation when compared to other countries,” the report read, according to which “in 2030 this percentage of time will grow to 67%.”

In a scenario in which about 26% (of the total potential of 67%) of working time becomes automated, the report said that “the equivalent of 1.1 million jobs up to 2030, with a higher incidence in the industry sectors, can be lost.”

In the opposite direction, “adopting automation and the inherent economic growth could create between 600,000 and 1.1. million new jobs up to 2030, with a special focus on the health, social assistance, technical and construction sectors.”

The report concluded that about 1.8 million workers will “need to improve their skills or change jobs by 2030.”

The report is called “Automation and the Future of Employment in Portugal” and partnered by the McKinsey Global Institute and Portugal’s Nova School of Business and Economics.

LUSA