By 2030, com­pa­nies in­vest­ing in In­dus­try 4.0 tech­nol­ogy will trans­form en­tirely... and so will the labour mar­ket

Arabian Business English - - CONTENTS -

Com­pa­nies in­vest­ing in In­dus­try 4.0 tech­nol­ogy will trans­form en­tirely – and so is the labour mar­ket

More than buzz­words

AI, 5G, IoT, blockchain and au­to­ma­tion are next gen­er­a­tion tech­nol­ogy con­cepts on the hori­zon ready to spark a new in­dus­trial rev­o­lu­tion. Tech­nol­ogy has re­sulted in widespread tran­si­tion in the past as well, but un­like af­ter the ad­vent of the steam en­gine, elec­tric­ity, and com­put­ers, In­dus­try 4.0 will com­bine cy­ber phys­i­cal sys­tems. That means it will need an ar­ray of so­phis­ti­cated skills to be able to op­er­ate.

Where are all the pros?

Un­for­tu­nately, nextgen­er­a­tion tech­nol­ogy adop­tion will out­pace the growth of skilled labour short­age. The gap will be so large in fact, that by 2030, labour con­sul­tancy Korn Ferry es­ti­mates ev­ery coun­try in the world will ex­pe­ri­ence a skilled tal­ent deficit ex­cept In­dia. The UAE is also pre­dicted to face a short­age – 63,000 in 2020, and nearly dou­bling to 110,000 by 2030, at an op­por­tu­nity cost ex­ceed­ing $50bn.

The war for tal­ent

To keep pace with oth­ers, cor­po­ra­tions will hike wage rates as they bid to at­tract tech-savvy tal­ent. In Saudi Ara­bia, that wage rate pre­mium will ex­ceed $10,000 per pro­fes­sional by 2030; in Hong Kong by

$40,500. But Korn Ferry warns that a wage war will prove to be an un­sus­tain­able so­lu­tion to the global skilled short­age. What is needed is a con­certed drive to en­act poli­cies across the world to up­skill avail­able tal­ent.

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