By ISAPUT [CC BY-SA 4.0] via Wikimedia Commons
New research reveals that jobs in the City will be lost to automation earlier compared to those that in the wider job market.
According to the analysis by the Pwc of over 200,000 jobs across 26 countries, the coming two to three years, the first wave of automation will already arrive. It will affect professional and financial services the hardest as compared to the other industries.
As much as 30 percent of the jobs across the economy could be lost to automation by the year 2030, and between two and three percent will be lost during an initial wave that is set to begin in the early 2020s.
However, for jobs in the financial services, that is predicted to stand at between six and eight percent since they are easy to automate with simple algorithms.
John Hawksworth, the chief economist of PwC, stated: “When you look at financial services, a lot of jobs are relatively routine jobs such as data analysis. Particularly clerical, which makes up a quarter [of financial jobs], are vulnerable to automation.
“To some extent, it’s a continuation of what is already happening. We can already see banks moving this way, moving online and closing branches.”
The automation will also remain to be higher into a second wave of “augmentation” later in the decade, until a third wave of “autonomy” into the mid-2030s when more complicated technology, that includes robotics and driverless cars, will have a larger impact on the industries which employ a higher number of people, such as healthcare, teaching, and transport.
“It does put a premium on upgrading your skills and developing a new career – it may be that some don’t last,” warned Hawksworth.
“Hopefully employers will help, and even government. Jobs that remain are likely to be high productivity and high wage. Those who develop the skills can boost their prospects in the long term and overall that’s good for the economy as a whole.”
The report discovered that GDP is estimated to improve by 10 percent in the long term, thanks to robotics and artificial intelligence and related technologies.