Covid-19 tech adoption set to send many workers home – PwC

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Many firms are in Africa are prioritising automation, a move that could render 30 per cent of employees jobless, according to a new survey by consultancy firm PwC.

This could aggravate the high unemployment rate in the continent accelerated by  Covid-19 social-economic pressures. 

In Kenya, nearly 4.64 million people were jobless at the end of June 2020, up from 2.94 million at the end of March 2020 with the country’s unemployment rate doubling to 10.4 per cent. 

According to PricewaterhouseCoopers’ New World, New Skills’ report which polled Chief Financial Officers (CFOs), about 55 per cent of people are worried about automation or other innovations taking their job.

A majority of 60 per cent think fewer people will have stable, long-term employment while 30 per cent of jobs are at high risk of displacement by automation by 2030.

The automation and digitisation of the workforce will not only alter jobs but their number and perceived value whereby talent on creativity, innovation and imagination will be prioritised.

The report shows 68 per cent of Africa CFOs are in need of accelerating their plans for automation.

The PwC East Africa Advisory Lead, Muniu Thoithi said workers and leaders are now more than ever aware of the impact automation and technology will have on them and their business.

“The current workforce is in dire need of nurturing agility, being able to change and adapt to the new realities and re-skilling whereby they will be able to sharpen their skills in order to remain relevant in the workforce and in business,” Thoithi said. 

Consequently, 63 per cent of CFO’s globally are looking at offering new or enhanced products or services for building revenue streams.

The pandemic has put pressure on jobs, training, accelerated e-commerce and digitised the way of working leading to structural changes in the economy.

The survey further indicates that working from home will remain a key feature with 52 per cent of CFO’s aiming to make remote work a permanent option.

At least 75 per cent say increased flexibility developed during the pandemic is a fact that will make their organisation stronger for the future.

The survey further shows that workers are worried about their future, creating pressures on government and businesses.

Some of the industries to be affected by automation include transport and storage, manufacturing, wholesale and retail trade, finance and insurance, human health, social work, and education.

World Economic Forum (WEF) 2019 indicated that the work landscape is changing and by 2022, around 75 million roles will be in decline as 133 Million people will need new career paths enforced by the digitisation of the workforce.

Workers have not given up with at least 74 per cent willing and ready to work on a new skill or retrain to remain employable in the future.

”If offered training by their employers, the workers are willing to commit two days per month to training to upgrade their skills,” the survey indicates.

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