Technological Changes Affecting Future Labour Demand

With the great progress of modern technology, the application of digital transformation in business activities is increasingly popular. Modern technology not only brings convenience, but also contributes to improving the efficiency of the operations of enterprises. This not only raises the standard required for employees but also promotes a transformation in labour recruitment in today’s market. The article Technological Changes Affecting Future Labour Demand provides a detailed analysis of the development of technology and its impact on the demand in the labour market.

1. Current technological changes

In the process of development of science and technology, humanity has undergone four major industrial revolutions. From James Watt’s invention of the steam engine, to the advent of electricity and assembly lines, or the development and integration of information technology into everyday life, all have created breakthrough changes and important impacts on society.

  Building on the preceding industrial revolutions, the world is currently experiencing the Fourth Industrial Revolution with the emergence of newer technologies such as artificial intelligence, automation platforms, or Internet-connected device networks. These developments have contributed to making human life increasingly modern and convenient.

• Automation and robotics:

In the context of the Industrial Revolution 4.0 – a comprehensive breakthrough with a powerful combination of digital technology and industrial tradition, automation and robotics are playing an increasingly important role.

Automation and robotics have completely transformed the way we approach production. Previously, manufacturing processes often relied on human labour, involving repetitive tasks requiring precision. However, with the advent of automation systems and robots, these tasks are performed rapidly, accurately, and continuously 24/7 without the need for breaks. With the ability to perform repetitive tasks with high precision requirements, robotics has brought flexibility and enhanced efficiency to the production process. From product assembly, quality inspection to packaging, robots can carry out these tasks much faster and more efficiently than human labour.

It can be seen that automation and robotics are changing the way production and services are delivered. However, these advancements also pose challenges for traditional labour, especially those without high-level specialised skills, facing the risk of job loss as many simple tasks can be replaced by machines.

• Artificial Intelligence (AI):

Nowadays, AI is rapidly becoming one of the most advanced technologies.

The capabilities of AI are not limited to automation and prediction. In the industry sector, AI already has a strong presence in optimising production processes, from analysing data to forecasting market demand, to using intelligent robots to perform repetitive tasks quickly and accurately. Besides, AI is also changing how we advise and support customers. AI systems are capable of analysing and evaluating information from users to offer the best advisory solutions, enhancing user experience and increase satisfaction.

However, with the rapid expansion of AI, there is an increasing demand for high – quality human resources. As a result, Therefore, the search for and training of AI experts and individuals with deep skills in data analysis and programming are on the rise.

• Blockchain

Blockchain does not just serve as the fundamental foundation for cryptocurrencies such as Bitcoin or Ethereum. In fact, it is also being widely applied in many other fields such as supply chain management, data security, and smart contracts. The security, transparency and independence of Blockchain have created an urgent need for professionals in information security and Blockchain technology. Similar to AI, the demand for Blockchain experts is surging, especially in the context of a growing digital economy.

• Digital Twin Technology

Digital Twin, “digital replica” of physical systems, is creating a wave of innovation in the way we manage and operate devices and systems. It is not only applied in the manufacturing industry, but also in maintenance and service delivery. This technology helps organisations optimise performance and significantly enhance risk management.

To take advantage of the full potential of Digital Twin technology, expertise in IoT (Internet of Things), big data, and simulation is required. These experts not only help build and deploy Digital Twin systems effectively but also help organisations better understand how to connect and optimise devices and processes in a digital world.

2. New labour recruitment trends

• Technology replaces several professions:

Faced with the changes brought by the Fourth Industrial Revolution, the infiltration of technology into business activities will lead to the disappearance of some jobs. Automation technology and artificial intelligence can help businesses efficiently complete simple or repetitive tasks more effectively than humans. For example, in factories, packaging tasks usually occur at the end of the production cycle. These tasks require employees to perform actions such as packaging products, printing labels, or sealing product packaging for transportation purposes. These tasks often do not require high-level expertise and involve simple, repetitive actions, making them susceptible to replacement by new technology. Automation systems and robots can be programmed to place products into packaging, package them, and seal them without human intervention, ensuring accuracy and speed while reducing the likelihood of errors and enhancing productivity. Industry 4.0 will reduce the proportion of physically simple labour, thus employers will no longer need employees for these tasks but will tend to invest more in new technologies. This will lead to the gradual disappearance of these jobs from the labour market.

• Technology developments create new job opportunities:

New technologies are gradually becoming “companions” in businesses as they can optimise their processes. Although new technologies may gradually replace human labour in some industries, they can also contribute to creating many new industries as the demand for managing, developing, monitoring, and operating these technologies increases. Therefore, the trend of recruiting employees with full IT skills or intellectual employees is gradually becoming more prevalent in the labour market. Additionally, with the steps towards the Fourth Industrial Revolution, as an inevitable part of the law of development, more new jobs will be created, such as those requiring expertise in artificial intelligence or those related to machinery, or other jobs related to user information protection, etc. These jobs are just a small part of the myriad of opportunities created in the era of technological innovation. As we get closer to development, there will be more and more demands for entirely new jobs in the market, creating more job opportunities for employees.

• Solutions to the changes in labour needs

In the face of fluctuations in labour demand today, enterprises and employees need to make the right moves to adapt to the market that is gradually changing from the existence of the Fourth Industrial Revolution.

• For enterprises

In the era of Industry 4.0, enterprises need to create opportunities for their employees to learn, engage, and develop with the knowledge of new technologies. Enterprises need to strengthen internal training and development programs to help employees adapt to various types of technology, thereby leveraging this factor in the sustainable development of the company. Additionally, enterprises need to create an open working environment, enabling employees to enhance their knowledge acquisition abilities to meet the company’s needs in using technology to increase productivity.

With changing demands for the quality of employees, enterprises also need a plan to rationalise human resources within the company. During the process of recruiting employees, enterprises must have standards for personnel in the new technological age, including all requirements for knowledge and skills that employees need to equip themselves with to serve the technological factors integrated into the company’s operations.

• For employees

Under the current trend of changing labour demands, recruiters will have higher requirements for the knowledge and skills of employees. Therefore, employees need to equip themselves with knowledge and skills related to new technologies to meet the demands of recruiters when applying Industry 4.0 technologies to their daily work. With the decreasing emphasis on manual labour-intensive industries, employees need to learn and enhance additional knowledge and expertise in their field to meet the increasingly high demands from recruiters.

Recognising the newly required skills in the current labour market is essential so that employees can focus on enhancing their knowledge accordingly to their pursued field. This can be achieved by participating in training classes, specialised skill workshops, or other courses. Learning and staying updated can help employees become more resilient to changes, especially when their industries may be threatened by the development of new technologies.

Furthermore, with new industries emerging in the era of Industry 4.0, young employees can choose paths related to fields such as artificial intelligence, big data, Internet of Things, or user data security. These fields will be the leading trends in the future, as Vietnam is advancing further into industrialisation and modernisation of business operations. Therefore, employees can adapt better to market changes, which increasingly require talented individuals with expertise in these technologies.

Overall, the current trend of technological development has a significant impact on the labour market demand. It is necessary to require employees to keep pace with the current trend, thereby enhancing the quality of the workforce in enterprises. The advancement of digital technology will lead to the disappearance of some traditional industries, but at the same time, it will also create new opportunities for employees to undertake tasks that have never appeared before. Therefore, both employees and enterprises need to take appropriate actions to address the fluctuations in the labour market in the digital age. In the future, technology will continue to evolve, so preparation will help both employees and enterprises adapt more easily as changes become more prevalent.

Above is the general content related to Technology Changes Affecting Future Labour Demand that Phuoc and Partners share with readers. If you have any difficulties related to the legal field, please contact us. Phuoc & Partners is a law professional consulting firm established in Vietnam and which currently has many nearly 100 members working in offices in Ho Chi Minh City, Hanoi and Danang. Phuoc & Partners is also considered as one of the leading law firms with specialised staff in the legal field in Vietnam, whose practice areas are ranked first in the legal market such as Labour and Employment, Taxes, Mergers and Acquisitions as well as Litigation. We are confident to be one of the Law Firms providing the best legal services to clients.