Over 80 percent of workers in the retail and business-process outsourcing (BPO) sectors are at “high risk” of losing their jobs due to automation, according to the United Nations Conference on Trade and Development (Unctad).
In its “Information Economy Report 2017”, the Unctad said some 85 percent of retail and 89 percent of BPO workers are at risk of being displaced by the automation of operations.
The Unctad said that, while increased digitalization will create new jobs, occupations will also disappear as a result of automation.
“Advances in computerization, software, automation, robots and AI [artificial Intelligence] enhance the scope for disruptions to traditional industries, with smart machines taking over functions currently performed by people,” the report read.
“On-site security guards may similarly be replaced by sensors monitored remotely in centers that provide surveillance for multiple sites,” it added.
The Unctad said increased digitalization will introduce four changes—job creation, job destruction, job changes and job shifts.
New jobs will stem from the production of new goods and services such as 3D printing, software, app development, and AI.
The report noted that conditions of work will be affected, such as benefits extended to workers, which includes allowing more flexibility for people in remote locations and people with disabilities. The Unctad also said new skills and education adjustments will be required, particularly those linked to digital skills. Workers will also be required, to have strong cognitive, adaptive and creative skills.
“A particular concern is that those losing their job may find it hard to fill the new vacancies created by digitalization, at least not without reskilling or retraining. The rapid pace of technological change and disruption accentuates the risk of mismatching of skills and highlights the urgent need for adjustment measures,” the report read.
The same report noted that the Philippines is considered as one of the world’s 10 largest computer-services exporters and the only Southeast Asian country on the list.
Data from the Unctad, the World Trade Organization and the International Trade Center showed the Philippines’s computer-service exports rose to $5.17 billion in 2016, from $3.12 billion in 2014.
The country’s total computer- service exports accounted for about 1 percent of the $353.1-billion global exports of computer services last year.
The top 10 largest computer exporters were the European Union (EU) with $213.31 billion, followed by India with $52.68 billion and the United States with $17.25 billion in 2016.
The Unctad said the value of computer-services shipments of the top 10 exporters amounted to $315 billion in 2016. The EU and India accounted for 86 percent of the total computer-services exports.
“The expansion of information and communication technology [ICT] services in world trade reflects how much the digital economy has grown,” the report read.
According to the Unctad, preparing for the digital economy requires a concerted, holistic, cross-sectoral, and multistakeholder approach to policy-making. Key national policy areas include ICT infrastructure, education and skills development, competition, science, technology and innovation and fiscal issues, as well as trade and industrial policies.