In the developing world, two-thirds of jobs could be lost to robots

Automated industry is gathering pace in developing nations.
Image: REUTERS/Wolfgang Rattay
Stay up to date:
Emerging Technologies
Labor-cost advantage?
From recent reports, it may seem like automation only affects those in developed countries. But a report from the UN Conference on Trade and Development says that it might also affect those in developing countries, likely, even more so.
The report explains that, “The increased use of robots in developed countries risks eroding the traditional labor-cost advantage of developing countries.” It cites another report from the World Bank that states: “The share of occupations that could experience significant automation is actually higher in developing countries than in more advanced ones, where many of these jobs have already disappeared.” This means that low-skill jobs in developing countries are more vulnerable since these jobs could also be done by robots, thus displacing human low-skill labor in these countries. This translates to about “two thirds of all jobs” developing countries might lose to automation.

It states that automation could run the risk of having economic activity, like the manufacturing industry, be reshored to developed countries from developing ones. Reshoring is the act of bringing back domestic manufacturing to a country. It is already happening today but according to the report, it’s happening in a slow pace.
Maintaining human jobs
This, of course, brings up the issue of alleviating the impact that the robots have on the developing world. According to the report, “outcomes will be shaped by policies.” It advises these countries to embrace the “digital revolution” through the changing of educational policies combined with “supportive macroeconomic, industrial and social policies.” The report says that it might even help developing countries catch-up through the possibility to manufacture on a large scale.
Another solution could be to introduce Universal Basic Income. It will and is already being debated right now as some experts in various industries are pushing for it. It is being tested now so we could only watch out for its results.
“Disruptive technologies always bring a mix of benefits and risks,” the report says. We should always weigh in the risks these technologies bring while at the same time, exploring new ways to better our society with it.
Don't miss any update on this topic
Create a free account and access your personalized content collection with our latest publications and analyses.
License and Republishing
World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.
The views expressed in this article are those of the author alone and not the World Economic Forum.
Related topics:
Forum Stories newsletter
Bringing you weekly curated insights and analysis on the global issues that matter.
More on Emerging TechnologiesSee all
Noel Curran
February 19, 2025
Jan Oliver Schwarz and Katharina Kleine
February 18, 2025
Vincent Henry Iswaratioso
February 17, 2025
Aleksander Dardeli
February 14, 2025