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Davos report: Reskilling workers due to automation will cost $34 billion

By Axios Future

The U.S. government and private companies will need to pay $34 billion to reskill 1.4 million workers who may lose their jobs to automation in the coming years, according to a new report from the WRead full story

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  • There is no denying the workforce will change significantly in the age of Industry 4.0. The most successful businesses will be those who embrace their responsibility to develop their workforces for the future of work. In fact, a recent Deloitte study on business’ readiness for Industry 4.0 found that

    There is no denying the workforce will change significantly in the age of Industry 4.0. The most successful businesses will be those who embrace their responsibility to develop their workforces for the future of work. In fact, a recent Deloitte study on business’ readiness for Industry 4.0 found that nearly twice as many leaders will work to train existing employees rather than look to hire new ones. While this is good news for workers seeking new skills, it means that businesses will have to collaborate closely with governments, educators and NGOs to ensure their training addresses the most urgent needs.

  • There does not appear to be any information about what the expected skillsets will be in the fourth industrial revolution. Which seems very strange for an article talking specifics about re training a work force. I’m also unsure why a government would be any good at retraining anyone, historically governments

    There does not appear to be any information about what the expected skillsets will be in the fourth industrial revolution. Which seems very strange for an article talking specifics about re training a work force. I’m also unsure why a government would be any good at retraining anyone, historically governments are not good at training workforce’s for anything, let alone training people for jobs that have yet to be realized.

    This report, and the Axios report linked in it, is vague and inadequate.

  • This is what our analysis showed us: The least potential for outright automation - because AI and tech will be about integration and augmentation - fall into these four categories:

    People—This includes jobs that rely on strong interpersonal skills like chief executives, school psychologists, social

    This is what our analysis showed us: The least potential for outright automation - because AI and tech will be about integration and augmentation - fall into these four categories:

    People—This includes jobs that rely on strong interpersonal skills like chief executives, school psychologists, social work teachers, and supervisors of a variety of trades.

    Numbers—These are jobs that apply math to business problems, like economists, management analysts, and treasurers.

    Bugs and bad things—This includes human health-related jobs, like allergists, immunologists, and microbiologists.

    Spaces and structures—These are jobs that manage the physical world, like engineers and environmental scientists.

    One common factor in these clusters: unpredictability. Learn how to identify and deal with unpredictable environments and you’ll stay ahead of the robots.

    And this doesn’t even start to take into account the jobs that will be created that don’t exist now.

    It’s back to the same answer - a solid and affordable education in a range of fields will create the most flexible workforce. Society will end up paying one way or the other.

  • $34bn seems way too small a number. Ultimately, I expect it cost TRILLIONS.

    The winning companies of tomorrow have to get their current workforce to unlearn and relearn.

    The winning employees of tomorrow are constantly retooling and gaining new skills.

    Both organizationally and individually, it

    $34bn seems way too small a number. Ultimately, I expect it cost TRILLIONS.

    The winning companies of tomorrow have to get their current workforce to unlearn and relearn.

    The winning employees of tomorrow are constantly retooling and gaining new skills.

    Both organizationally and individually, it requires lot of commitment and money.

  • The only surprising information from this article is the underestimated cost! I would expect the actual cost to be higher due to businesses essentially having to restructure entire departments, lines of business, etc in order for output to increase effectively.

    The good news is that even with the massive

    The only surprising information from this article is the underestimated cost! I would expect the actual cost to be higher due to businesses essentially having to restructure entire departments, lines of business, etc in order for output to increase effectively.

    The good news is that even with the massive AI revolution, human judgement will still be needed, especially within the areas of risk management and compliance advisory, at least in the financial sector.

  • $34 billion to retrain 1.4 million displaced workers in the next few years in the US alone? Considering our national debt is $22 trillion and the government spends nearly $600 billion on defense every year, this number is frighteningly low.

    Technology doesn’t displace workers overnight. It slowly eats

    $34 billion to retrain 1.4 million displaced workers in the next few years in the US alone? Considering our national debt is $22 trillion and the government spends nearly $600 billion on defense every year, this number is frighteningly low.

    Technology doesn’t displace workers overnight. It slowly eats away at their earning potential, eroding the value of their education and experience, as well as chipping away at their self confidence and ability provide for their families. This takes years to notice, but the economic effects are immediate.

    I truly believe the imminent automation of jobs is a much bigger and more expensive risk than anyone expects.

  • Agree with Junta - $34 billion buys you a subway line in NYC - maybe!

  • Industry 4.0 skills will required light code/scripting, understanding of robotics and automation, understanding of how AI / Machine Learning works, process centric thinking, and a continuous improvement mindset. These skills will have to permeate at different degrees of mastery for each type of work

    Industry 4.0 skills will required light code/scripting, understanding of robotics and automation, understanding of how AI / Machine Learning works, process centric thinking, and a continuous improvement mindset. These skills will have to permeate at different degrees of mastery for each type of work from front line to management. Not only do businesses need to think about how they can retool existing staff, they need to by lobbying their governments to overhaul their K-12 and Higher Education curriculum. D

  • It's being referred to as the Creative Class, an inevitable shift from the Working and Service Class jobs which are replaced (replaceable) by automation, robotics, web services, and AI. We must must must teach people to be both technical and creative. STEAM not STEM. The Arts, History, even Sports and

    It's being referred to as the Creative Class, an inevitable shift from the Working and Service Class jobs which are replaced (replaceable) by automation, robotics, web services, and AI. We must must must teach people to be both technical and creative. STEAM not STEM. The Arts, History, even Sports and competitions... These are the skills that distinguish humans from machines and enable people to work creatively in ways that bots can not.

  • The points in this article should not be a surprise to anyone as we have been predicting this displacement of workers since at least the mid-1980’s. Also, “reskilling” is not a thing, it’s properly called retraining. Let’s stop bastardizing the language, can we?

    Retraining workers displaced by advanced

    The points in this article should not be a surprise to anyone as we have been predicting this displacement of workers since at least the mid-1980’s. Also, “reskilling” is not a thing, it’s properly called retraining. Let’s stop bastardizing the language, can we?

    Retraining workers displaced by advanced technologies has been a topic of discussion since the first assembly lines were installed in Ford’s plants in Michigan in the early 20th century. We must look after people affected by the changes in the workplace, and the destruction of the social safety net by conservative populists is destroying our ability to look after people affected by automation. We must do better.

  • Cost can be absorbed by business. I don’t want to see some bureaucratic boondoggle started.

  • Sounds cheap compared to uni basic income

  • Evolution needs throwing away something but it worth to get a great result.

  • Number from Davos pilling

  • This seems pretty obvious, but it doesn’t seem to be getting more attention. In the U.S. we have far too many infilled jobs because workers lack the skills employers are looking for, if we want them filled business and government need to work better together to train and retool people to fill them.

  • Or Why the USA should invest in Public Education and not Charter Schools!

  • That seems like a very small price to pay, actually.

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