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Automation to have greatest impact on labor market

Released at: 14:53, 06/12/2018

Automation to have greatest impact on labor market

Photo: Duc Thanh

VietnamWorks releases latest labor market report on December 5.

by My Van

Automation will be the technological factor with the biggest influence on the labor market over the next five years, according to the “Career Prospects & Skill Trends in Vietnam (2018-2022)” report from VietnamWorks released on December 5.

When asked which technological factors would have the largest impact the labor market in the next five years, 59 per cent of respondents selected “Robots and Automation”. The telecommunications boom, with “mobile internet, cloud technology” (57 per cent) and “processing power, big data” (54 per cent), were also forecast to create profound change.

The report also showed that recruitment demand will change as a result of the shifting nature of work and the labor structure. According to human resources (HR) professionals, the labor market will transform dramatically under the effect of socioeconomic factors. “Change in the nature of work, flexible work” was selected by 66 per cent of respondents as stimulating change, followed by “the development of elite labor” (55 per cent) and “the development of the young demographic” (54 per cent).

Forty per cent claimed “the need for privacy” and “greater awareness of environmental responsibilities” will have a substantial impact on recruitment demand. Up to one-fifth stated that the greater participation of women would undoubtedly change the labor market.

Around 90 per cent of respondents were certain that “High Tech, Engineering” and “Computer & Technology” would have increasing demand in the near future. Another category with great prospects over the next five years is “Arts, Design, Entertainment, Sports & Media”, as agreed by 62 per cent of respondents.

Certain job categories will experience lower demand, such as “Administrative & Clerical”, according to 42 per cent. Despite being in the top three categories in terms of increasing recruitment demand in 2018, according to a recent report from VietnamWorks, in the longer term repetitive jobs were found to be susceptible to replacement by machinery.

The report also pointed out that employers prioritize “developing automation” and “recruiting employees with skills suitable for new technology”.

Eighty-seven per cent of surveyed HR professionals claimed they prioritize “developing automation” or “recruiting full-time employees possessing skills suitable for new technology”. Many also pay attention to improving the quality of the existing workforce (82 per cent). For those who said they would implement “training for current employees”, 47 per cent said they would “train internally” while only 20 per cent would “train through course providers”.

Mr. Gaku Echizenya, CEO of Navigos Group, said the labor market is experiencing unprecedented change from Industry 4.0. This means businesses have to constantly improve in understanding the market by received updated information from reputable sources, from which they can promptly respond to change and build effective recruitment strategies.

“For employees, an active learning attitude, digital skills, and soft skills such as teamwork and management are competitive advantages in the digital era,” he said. “At the same time, it is necessary for schools to adjust their enrollment plans and curriculum to improve students’ employability. This includes looking closely at future career prospects and skill trends and encouraging students to strengthen their knowledge and skills through hands-on experience.”

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