Threat of workplace automation more than offset by job creation

But low-skilled workers still at risk from increased automation, according to Deloitte report.

The threat of automation to the UK jobs market is being broadly offset by the creation of high-skilled jobs, according to a report by Deloitte.

Despite the largely optimistic findings, the risk to those performing repetitive and low-skilled jobs is still high.

The report splits roles into those at high, medium and low risk of automation within the next 20 years. It then uses ONS data to analyse the impact automation has had on all three groups since 2001.

It suggests that since 2001 3.5m low-risk jobs have been created in the UK. These jobs include business and financial project managers (170,000 jobs created), teaching assistants (250,000) and care home workers (275,000).

These pay on average £10,000 more than the high-risk roles and have subsequently contributed £140bn to the UK economy.

On the flipside 800,000 high-risk jobs have been lost across the same period. Among these roles are personal assistants (210,000 jobs lost), typists (110,000) and bank and office clerks (100,000).

The research also suggests this pattern of dual job creation and loss is consistent across all regions on the UK. Although unsurprisingly, the South-East has enjoyed the highest percentage of job creation in the period examined:

 

Region

Increase in low risk jobs

Increase in medium risk jobs

Increase in high risk jobs

Net job creation

Economic value added (£bn)

South East

46.6%

28.3%

-2.8%

      845,000

30.9

London

41.0%

42.3%

1.3%

      870,000

30.1

East of England

28.9%

21.8%

-9.3%

      306,000

11.2

South West

19.4%

8.5%

-20.6%

      256,000

11.2

Scotland

30.7%

20.8%

-4.4%

      317,000

10.6

East Midlands

34.8%

22.3%

-11.5%

      221,000

8.3

Yorkshire & The Humber

29.7%

21.6%

-11.2%

      214,000

7.8

North West

23.6%

16.0%

-12.4%

      152,000

6.8

West Midlands

24.5%

22.7%

-14.1%

      152,000

6.1

Wales

31.5%

28.6%

0.1%

      221,000

6.0

North East

27.1%

26.1%

-5.9%

      131,000

4.4

Merseyside

48.4%

31.6%

5.9%

      127,000

3.5

Northern Ireland

7.7%

5.0%

-8.7%

      135,000

3.4

 

Deloitte vice-chairman Angus Knowles-Cutler said the research showed that the shift to automated work “is well underway in every nation and region of the UK”.

“But we appear to be benefitting from this, not losing out,” he continued.

“Technology is replacing the high-risk, routine occupations in the UK economy but we are seeing good growth in the creative, caring and complex jobs at less risk of automation, as well as increased economic value from these.”

But he warned that “we cannot be complacent”.

“Business, educators and government must work together to ensure young people enter the workforce with the skills suited to the jobs of tomorrow and those already in work are able to re-skill during their careers,” he concluded.

Further reading: 1 in 3 entry level roles can be done by robots, but can automation create more jobs?

Praseeda Nair

Praseeda Nair

Praseeda was Editor for GrowthBusiness.co.uk from 2016 to 2018.

Related Topics

Automation