Mechanization to severely reduce jobs by 2025, says Chairman of Manipal Global Education Services

 By the time it is 2025, more than 20 crores of youth from the middle class will be unemployed or have the scarcity of jobs, says T V Mohandas Pai the Chairman of Manipal Global Education Services. The reason for this is the increased dependence on mechanization and improvement in technology, he added. Mr. Pai elaborated on this and said that around 200 million youngsters in the age range of 41-21 will either have no jobs or will be struggling with fewer jobs.

 

Any stakeholder in the Government is virtually clueless on the aspect of addressing this crisis due to the lack of appropriate data, he added. The Chairman of Manipal Global Education Services was addressing the gathering at the National HRM Summit of the AIMA and explained that it is going to be terrible in terms of demography. The statistics reveal that only 52 percent of the people are engaged in agriculture currently when compared to the 62 percent people ten years ago.

 

The number of people who are dependent on industries and services for employment is increasing at the rate of 10 per cent as quoted by the Business Standard. TV Pai also added that inequality between people in the service industry and agriculture sector is increasing. This social phenomenon is being noticed all across the nation and has resulted in protests in diverse states in India. The inclination of companies to depend on mechanization and advancement of non-natural intelligence in machines would be in the position to take place of the jobs that are based on process.

 

This will result in removal of jobs that are based on the rule. The majority of the middle class is employed in rule-based jobs. Algorithms can make rule-based jobs and creativity is still beyond the reach of the machines. Pai said that people with creativity will still have chances for employment in the industry. Robots are finding their way at several places. They do not seek either appraisal or balance between life and work.

 

Robots can work uninterrupted throughout the day. For instance, metro in Deli is now automated. The automobile industry that gives employment to one in every six people globally is on the route to automation, said Pai. The jobs in the banking sector are getting reduced due to the mechanization of the system for payment via the assistance of digital payments and ATMs. Indian banks have grown at the rate of 10 to 15 percent in the past 15 years but the rate of employment has increased only at 5 percent. In some years the banks will introduce financing through robots that will reduce the time taken for bank loan quotation to just 30 minutes, said Pai.

 

The Chairman of Manipal Global Education Services explained that creation of jobs will be hindered by the advancement of technology, automation and a new set of seekers for employment. It was required that the stakeholders of the Human Resources sector address this situation.