The global labour force will fall as the new industrial revolution gets under way, the head of one of the largest firms in Germany warned, if workers are retrained with new skills.
Joe KAESER, the global CEO of engineering giant Siemens, said that almost a third of jobs could be lost as the transition from combustion engines to electric vehicles occurs within the next decade, that would be “one of the most important transformations of all time.”
Speaking over the weekend at the festival of speed at Goodwood, KAESER said this is a key challenge for industry leaders to build the car of the future difficult and conversion is in order, because ultimately, many of the traditional roles will disappear in the short term.
“This can lead to quite a recession in employment because if you have 20-30 less than the cost of services, then you have a 20% -30% less jobs. That’s how it was in the first three industrial revolutions. There has always been a significant change in employment. And then, by including growth, this in fact proved that was created more jobs. High growth was achieved, and, obviously, more people moved out of poverty and better lives.
“So, the first three have worked very well and now we stand on the threshold of a fourth industrial revolution which will impact on the production of large quantities, as it accounts for 70% of global GDP.”
Said Kaesar would be for the government and business to find a solution to the problem that the achievements in technology creation, including the retraining of workers whose skills would no longer be relevant.
“The social and economic consequences of digitization will be massive. The least effective parts of the production chain of intermediaries, will be cut. Unfortunately, the least effective part of the value chain of a person, so someone needs to do something about the fall”, – he said.
“It is desirable that governments and business will retrain together. Governments must set the framework and the private sector, to fill it with content.”
Siemens, which employs more than 370 000 people worldwide and 15,000 in the UK already spends 500 million euros per year for training and qualifications plans to invest more, said KAESER.
Earlier this year Siemens announced plans to invest £200 million and create hundreds of jobs in the new UK train factory in goole, East Yorkshire, service contracts including hs2 and the London underground. The Munich firm was a British operation for more than 170 years and currently operates 14 factories serving local demand in the UK, which is the fourth-largest market for Siemens behind the US, Germany and China.
He also selected hull as its European and global centre for renewable energy sources, wind turbines.
Kezer said he was satisfied that Theresa may is seeking practical results in the talks about a British exit from the EU, and that Siemens remains committed to the UK. He said that the German firm was early and fast to seek dialogue with the British government in a couple of weeks after the referendum.
“From what I see, it seems that the government and the Prime Minister of trying to find a way to make it work. Are you looking for a solution 70/30, so you try to get 70% right. You’re still missing 30% but you to do something. If you wait for 100% it could never do, because who gets 100%?” he said.
“It is important that the government gives an idea on what they are trying to achieve, and then we can make up our minds on what it means for us. We are reasonably satisfied with the dialogue we have with government and political leadership”.
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KAESER, who met Donald trump in Davos in January, said he was surprised and alarmed by the growth of trade tensions between the US and its main trading partners.
“If you start something and get it out of the box, it’s often hard to get it back. That’s what concerns me most. [May result in] nationalism and protectionism.
“He must be the concern of every citizen of this planet. How can we avoid further division of our society?”
Said Kezer trade war took place in the digital future where information flowed freely, and there were no boundaries.
A new relationship with the EU will provide millions of jobs – Theresa may
A new relationship in the UK with the EU will provide millions of jobs in the aviation industry and strengthen the UK’s position as a leading space nation, Theresa may will say on Monday.
Opening in 2018 Farnborough International Airshow, the Prime Minister of the UK is at the forefront of civil aviation, as it announces £343m integrated circuit research funding to support new technologies, such as green aircraft.
“I want to build on [our leading position in aerospace, and to ensure not only that we maintain our fame, but in a competitive environment, we make the most of the opportunities that lie ahead.”
The representative of Airbus, the European aerospace giant, which has publicly called for greater clarity about the UK out of the EU, said: “we welcome the commitments and personal support for our sector from the Prime Minister, and it reflects the importance of Aerospace in the UK.”
•This article was amended on 16 July 2018 to determine the effect on the next industrial revolution in the first paragraph