New Delhi, December 02: Are we heading towards a technology nightmare? It seems so, T V Mohandas Pai said, at least about 20 crore young people between the age group of 20-40 would have no jobs or have less jobs by 2025 due to increasing automation and improvement in technology.
“By 2025 there will be 200 million young people in the age group of 21-41 with no jobs or less jobs and nobody knows what to do with these people. Government policy does not know what to do as they don’t have proper data,” said Pai, who is the Chairman of Manipal Global Education Services.
“We are going to have demographic nightmare,” he said at AIMA’s National HRM Summit.
While automation will impair job creation, new class of job seekers is going to come in market and HR mangers would be required need to solve this problem.
Citing the disparity between the growth of agriculture and IT sector, Pai added that only today 52 per cent as against 62 per cent in last 10 years are employed in agriculture sector. While, people depending on service and industry sector is growing at 10 per cent.
“Disparity between people in agriculture and in service industry is widening and that is getting social attention all across India which has led to various agitation across states,” he said.
So the need of the hour is to out-mark the performance of machines companies like Foxconn have started deploying robots at work. Not to mention, driver less cars and trucks are also being made which are going to adversely impact jobs in the coming days. People who are creative would only be able to survive.
“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,” Pai said.
He further highlighted how jobs are shrinking in banking sector due to automation of payment systems.
“Bank branches and employment are now shrinking in America. In India in last 15 years, banks have grown at 10-15 times in assets and liabilities but employment has grown 5 per cent. In India very soon there will be robo finance which will search all portals and give you bank loan quote in half an hour,” Pai said.
Make My Trip co-founder and CEO Rajesh Magow also had said the company has reduced work force at call centres over the years due to automation.
Info Edge Managing Director and CEO Hitesh Oberoi said that HR managers need to work as extended arm of CEOs and groom talent base to help organisation scale up their businesses.