How the 4th industrial revolution will affect the labor market

Mathijs van der Kooi
Last updated: 5 Oct 2021

How the 4th industrial revolution will affect the labor market

Mathijs van der Kooi
Last updated: 5 Oct 2021

The 4th industrial revolution is an advancement in technology that will have profound implications for the future of work. It is characterized by advances in artificial intelligence (AI), the internet of things (IoT), machine learning, virtual assistants, quantum computing, and other revolutionary innovations. These technologies will transform work and disrupt almost every aspect of business operations.

How Advanced Technologies Will Affect Business Processes

Experts predict that the fourth industrial revolution will disrupt labor markets through automation and the use of robots and virtual assistants to perform tasks previously done by humans. For example, research suggests that new technologies have improved interactions with companies. The technologies enable firms to offer personalized and connected customer service.

Customers are likely to switch to brands that offer better experiences through the use of technology. Customers prefer brands that offer integrated processes and contextualized engagement tailored to their needs based on past interactions. The implication is that firms need to deliver a superior customer experience to avoid losing customers to competitors.

How Businesses Can Adjust to the 4th industrial revolution

The fourth industrial revolution will profoundly affect business processes and operations as automation, AI, and other intelligent technologies will replace human workers. Industry 4.0 will create smart factories where advanced technology will monitor operations and make independent decisions. For example, artificial intelligence and conversation tools use machine learning to perform many tasks without human input.
Businesses must prepare their workers for a technology-intensive work environment. There should be more emphasis on upskilling to prepare employees for new types of jobs and offer continuous training to acquaint them with new technologies.

Firms need to constantly evaluate their workers’ skills and identify gaps so that they can create a workforce with the right mix of skills to adapt to quick advances in technology. Firms need to increase their capacity to be agile and innovative. They should create a culture where innovation and creativity are valued.
Companies should allocate resources to training and education programs to help employees understand and benefit from new technologies. They should create learning environments where employees can learn to code in new languages, understand emerging technologies, and develop soft skills.

Implications of the 4th industrial revolution for Workers

Research suggests that emerging technologies will influence the type of skills hiring managers will consider while recruiting workers. The widespread adoption of AI and automation has eliminated most repetitive manual tasks. Consequently, recruiters are looking for candidates with high creativity, emotional intelligence, and critical thinking.

Workers need to develop skills and competencies that enable them to compete on the global stage. They will need to be agile enough to adjust to the changing work environment. This means they need to develop hard technical skills like learning to code and use different applications. Workers also need to develop soft skills such as interpersonal skills, problem-solving, and flexibility.

Further, people who are currently employed need to update their skills throughout their careers. They can upgrade their skills through internal training programs or use the free training resources available online. These online platforms offer opportunities to upskill and reskill at a low cost and the option of convenient scheduling.

Careers in the Gig Economy

The fourth industrial revolution has the potential to exacerbate income inequality, with highly skilled individuals getting high pay while low-skilled workers earn meagre wages. Automation will replace most low-skilled workers with machines. Experts also predict an increase in safe and rewarding jobs for highly skilled workers.

However, a new category of jobs has emerged. Workers can expect increased job opportunities in the gig economy, consultancy, short-term contracts, and freelancing. There are also several opportunities in the creator economy where creatives earn by creating and sharing content on social media and streaming sites.

Conclusion

The 4th Industrial Revolution has great impact on the labor market and employment as well. Freeday, has Virtual AI Assistants you can hire as a business. It is a perfect and easy solution to help you benefit from this trend.

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