Factory workers need to worry about automation more than techies

NEW DELHI: Automation is emerging as a big threat to jobs. The information technology (IT) sector seems to be the worst-hit by automation. But a survey by TeamLease reveals automation is affecting the manufacturing and engineering sector the most.

Jobs in factories are the most vulnerable to automation than those in the IT companies because it's easiest to automate manufacturing.

The trend of robots replacing workers is no more restricted to countries like Japan. It is accelerating across the globe in the field of manufacturing and production, taking away the livelihood of factory workers.

"Robots are taking over at large number of places. Robots don't want appraisal. They don't want work-life balance. They work 24 hours. In Delhi, metro is going to be automated. Automobile industry which employees 1 in 6 people in the world is going to be automated," said Mohandas Pai, IT industry veteran and Chairman of Manipal Global Education Services.

There is another important reason for automation impacting manufacturing more than the IT sector. In manufacturing and engineering, jobs affected by automation are lost permanently while in sectors like IT, e-commerce and startups, people who lose their jobs get upskilled to other jobs, says the TeamLease survey.




What is already happening in the US should be a grim reminder for India. The US lost about 5.6 million manufacturing jobs between 2000 and 2010. According to a study done at Ball State University, 85 per cent of these losses are attributable to technological change, mainly automation.

In India too, those who work in factories should worry about automation more than software engineers.

Early signs of jobs distress in factories are becoming visible. Textile major Raymond is planning to cut about 10,000 jobs in its manufacturing centres in the next three years, replacing them with robots and technology. The company employs nearly 30,000 staff in its 16 manufacturing plants in the country, which means it would offload a third of its workers in just three years.

According to Raymond CEO Sanjay Behl, the future could be even harsher. "One robot could replace around 100 workers. While it is happening in China at present, it will also happen in India," Raymond CEO Sanjay Behl told ET last year in September.

After manufacturing & engineering, other sectors affected the most by automation are e-commorce and tech start-ups, media, information technology, banking & financial services, education and BPO & ITeS.

Infrastructure is the least affected by automation. In developing countries, machines and robots are replacing humans in the cosntruction sector but in India the sector has yet to see automation at a level where it threatens to take away a siginificant number of jobs. Yet, it could only be a matter of time.

Fast-moving consumer goods and durables and travel & hospitality-which tend to have fewer process-based jobs which can be handled by machines-are other sectors shielded from the impact of automation.

Most affected by automation
1. Manufacturing & engineering
2. E-commerce & tech startups
3. Media
4. IT
5. BFSI, education
6. BPO & ITeS

Least affected by automation
1. FMCD & G
2. Travel & hospitality
3. Infrastructure

Economictimes.Com partnered with TeamLease to prepare a set of reports on the employment situation in the country. This story is part of the series based on data from the Employment Outlook Report of TeamLease. Part of ET Jobs Disruption Report, these stories scan various aspects of the employment situation at different levels of city, sector, profile, etc.