The Fourth Industrial Revolution

The report argues that the world is on the cusp of a “Fourth Industrial Revolution.”

The first revolution was spurred by the use of water and steam to power machinery, and the second replaced water and steam-powered machines with electrical power.

The third is the information technology revolution and the current revolution is described as an extension of the third, using a combination of hardware, robotics, and massive computing power to expand information technology beyond just software.

There’s great reason for Silicon Valley’s optimism in a future techno-utopia, these technologies have the potential to make enormous advances in productivity and solve challenging and previously intractable problems in every industry from healthcare to transportation.

Even if we take the surveys estimation of 5.1M lost jobs by 2020 with a grain of salt and trust that job growth can keep pace with job declines (albeit in different industries), it’s unequivocally clear at this point that the shift in employable skills will be a challenge for those on the losing end of that exchange.

This is a problem that we can prepare for though, and the WFE is rightfully ringing the alarm bell for employers and governments to prepare the global labor force for a sudden shift that could leave many workers at risk of losing their jobs. The WFE report writes:

“During previous industrial revolutions, it often took decades to build the training systems and labour market institutions needed to develop major new skill sets on a large scale. Given the upcoming pace and scale of disruption brought about by the Fourth Industrial Revolution, however, this is simply not be an option. Without targeted action today to manage the near-term transition and build a workforce with futureproof skills, governments will have to cope with ever-growing unemployment and inequality, and businesses with a shrinking consumer base. Moreover, these efforts are necessary not just to mitigate the risks of the profound shifts underway but also to capitalize on the opportunities presented by the Fourth Industrial Revolution. The talent to manage, shape and lead the changes underway will be in short supply unless we take action today to develop it.”

source:  http://techcrunch.com/2016/01/21/the-world-economic-forum-on-the-future-of-jobs/#.ti1srtz:G1cN