How will the labor market 5.0 change?

The 5.0 era marks a new phase of the Industrial Revolution. In this era, technology is reshaping how we live and work, profoundly impacting the labor market 5.0. New jobs are emerging while old ones are disappearing.

In this article, we will explore the changes that the job market will face in the 5.0 era, as well as the skills and knowledge that workers will need to succeed in the future.

We are no longer in the 4.0 era

The 5.0 era is a concept proposed by the Japanese government in 2016, describing a future society where humans and machines collaborate to solve issues and enhance quality of life. It builds upon the foundation of the 4.0 Industrial Revolution but places greater emphasis on human-machine cooperation, aiming to create a more sustainable and happier society.

Key Characteristics of the 5.0 Era

• Strong development of Artificial Intelligence (A.I.) and other advanced technologies such as robots, the Internet of Things (IoT), big data, and more.
• Integration of the physical world with the virtual world (cyberspace), creating a new space for living and working, where humans and machines can interact more naturally and efficiently.
• Focus on solving societal and environmental issues, such as climate change, poverty, inequality, and more.
• Aim to create a more sustainable and happier society where everyone has opportunities for development and success.

The 5.0 era holds immense potential, but it also presents challenges. To succeed, preparation and wise investments are necessary. We need to develop new technologies while changing our mindset and work approaches to adapt to this new era. By doing so, the 5.0 era can become a brighter time for everyone.

How Does the 5.0 Era Affect Our Lives?

The 5.0 era will deeply impact our lives, including:

• Enhanced Efficiency and Productivity: The 5.0 era will be driven by the strong development of Artificial Intelligence (A.I.) and other advanced technologies, enabling businesses and organizations to automate processes and increase efficiency and productivity.
• Creation of New Experiences: It will bring about new and exciting experiences, such as interacting with robots, using Virtual Reality (VR) and Augmented Reality (AR) devices, and more.
• Solving Social Issues: It will aid in addressing societal and environmental challenges, like climate change, poverty, inequality, and more.
• Building a Sustainable and Happier Society: The 5.0 era will contribute to creating a more sustainable and happier society where everyone has opportunities for development and success.

The Labor Market 5.0 will Experience Significant Changes

The labor market in the 5.0 era will undergo substantial changes. Not only will some professions be completely replaced by machines, but new ones will also emerge. As technology reshapes how we work, workers will need to acquire new skills to meet market demands.

The labor market 5.0 will prioritize placing humans at the center. Unlike the 4.0 era, 5.0 will shift focus from "what humans can do with technology" to "what technology can do for humans." Additionally, it will prioritize challenges that have a societal and human impact.

The five key focal points of labor market 5.0 include:

• Evaluation and Optimization of Supply Chains
• Enterprise Innovation and Digitization
• Smart and Sustainable Manufacturing
• Transformation driven by IoT, A.I., and Big Data for production and business management
• Human-Machine Connectivity.

Lost and Emerging Professions in the 5.0 Era

According to the World Economic Forum's report on the 5.0 labor market, around 23% of jobs will face disruption. Over the next five years, there will be at least 14 million fewer jobs. An estimated 83 million roles will vanish, while only 69 million new jobs will emerge.

Professions Predicted to Be Replaced

The largest losses are anticipated in administrative roles, security, traditional factory and commerce positions. Some characteristics of roles expected to disappear in the 5.0 era include:

• Repetitive Jobs: Repetitive tasks such as data entry, cashiers, and clerks may be automated by machines.
• Labor-Intensive Jobs: Labor-intensive positions like factory workers might be substituted by robots.
• Low-Skill Jobs: Low-skill jobs such as sales assistants could be carried out by self-service technologies.
• Non-Value-Adding Jobs: Roles that lack value addition, like quality control inspectors, may be replaced by automated processes.

New Professions in the 5.0 Era

Several new professions will emerge in the 5.0 era with the following characteristics:

• Artificial Intelligence: Professions like A.I. developers and data analysts are in high demand. A.I. is being employed in various fields, from healthcare to finance.
• Big Data: Data scientists and data analysts are also in high demand. Big data is a valuable asset, and the need for experts who can analyze and interpret large datasets will continue to rise.
• Internet of Things (IoT): High demand for IoT engineers and data analysts. IoT is a network of interconnected devices, and the need for experts who can design, deploy, and maintain IoT systems will continue to grow.
• Design and Manufacturing: Professions like design engineers and manufacturing engineers. Industry 5.0's advancements, like 3D printing and robotics, will increase the need for experts who can design and produce products using these technologies.
• Cybersecurity: As businesses and organizations become increasingly reliant on computer systems and networks, they become prime targets for cyberattacks. This drives demand for professionals in cybersecurity and network security.

Impact of 5.0 on the Workforce

Machines as Support, Not Replacements

In the stages of the 3.0 and 4.0 industrial revolutions, robots and artificial intelligence emerged to replace certain human positions in factories to enhance productivity. This has revealed that not only in the present day but also in the distant past, humans and machines have been competing in various job roles.

However, in reality, while robots are more stable and perform tasks with higher accuracy than humans, they cannot surpass human flexibility, adaptability, and critical thinking. According to a recent report from Harvard Business Review, about 20% to 80% of jobs could potentially be automated, but there is no job that can be fully automated. This implies that even with potential future developments, robots will not entirely replace humans.

Therefore, in the 5.0 era, humans will be responsible for jobs that involve value addition, creative thinking, skills, and innovation. They will also manage robot systems in production lines. Robots will assist humans in the overall digital transformation.

Balancing Efficiency and Productivity

The goal of Industry 4.0 is to connect machines, processes, and systems to maximize factory performance. In contrast, Industry 5.0 will focus on developing a production mindset where each factory not only maximizes productivity but also achieves high efficiency. To achieve this, there needs to be interaction between humans and machines.

In the near future, workers in factories will need to provide high value addition to products. This also requires them to possess specialized knowledge, skills, and creativity. Tasks that are mundane, repetitive, or hazardous will no longer be exclusive to humans. Robots and Cobots will perform these tasks better.

Clearly, humans and various types of machines will be connected to meet the increasing complexity in production and adaptability through continuously optimized manufacturing processes.

Preparing for the 5.0 Era Workforce

To succeed in the 5.0 era, workers need to equip themselves with new skills and knowledge. Skills and critical thinking are essential across various industries in the 5.0 era. They not only help you meet the changing demands of the job market but also are things that machines cannot replace.

Key Skills Needed in the 5.0 Era

• Technology Skills: Technology is reshaping how we live and work, deeply impacting the job market. Workers need knowledge of emerging technologies like artificial intelligence, big data, and the Internet of Things (IoT).
• Critical Thinking: Critical thinking is the ability to think creatively and solve problems effectively. This skill is crucial in the 5.0 era as technology cannot replicate it.
• Problem-Solving Skills: Problem-solving skills involve actively and efficiently resolving challenges. This is essential in the 5.0 era, where we face new challenges due to technological advancements.
• Teamwork Skills: Teamwork skills involve effectively collaborating with others to achieve common goals. This is significant in the 5.0 era, as many jobs require coordination among employees.
• Communication Skills: Communication skills involve conveying information clearly and effectively. This is crucial in the 5.0 era, where we need to communicate with people globally.