Egypt predicts massive job displacement due to automation

CAIRO – 25 December 2024: The Information and Decision Support Center (IDSC) at the Egyptian Cabinet has released a new analysis on the future of employment, highlighting the impact of technology and global economic transformations on the labor market. The analysis is based on various studies and research conducted since the World Economic Forum’s initial report on the future of work.

Findings reveal a mix of optimism and caution, emphasizing the profound changes brought about by the dual forces of technology and globalization, which are expected to significantly reshape job opportunities in the coming years.

Despite the challenges posed by technological advancements, studies indicate the emergence of new job opportunities across industries and supply chains. Research shows a rising demand for non-routine jobs that require analytical skills, in contrast to the automation of routine manual tasks. Historically, between 2007 and 2018, the adoption of modern technology in the United States led to the replacement of approximately 2.6 million jobs, particularly in roles like computer operators, administrative assistants, file clerks, and data entry specialists.

According to the IDSC analysis, the past two years have seen a notable acceleration in the adoption of advanced technologies by companies. Cloud computing, big data, and e-commerce remain dominant drivers, while encryption technologies have gained significant attention due to growing vulnerabilities in the digital era. There is also an increasing trend of companies adopting non-human robotics and artificial intelligence, which are becoming integral across various industries.

The analysis emphasizes that the adoption of technologies varies across industries. Artificial intelligence is particularly transformative in digital information and communication, financial services, healthcare, and transportation. Meanwhile, big data, the Internet of Things, and non-human robotics are widely utilized in industries like mining. The government and public sector, on the other hand, prioritize encryption technologies.

The 2020 “Future of Jobs” survey by the World Economic Forum reveals that companies are restructuring their workforces in response to new technologies. About 55% of companies are reshaping their value chains, 43% are increasing automation, and 34% plan to expand their workforce due to deeper technological integration. Additionally, 41% of companies intend to outsource specialized tasks to third-party providers.

By 2025, it is estimated that 85 million jobs will be replaced due to shifts in the division of labor between humans and machines. However, 97 million new roles are expected to emerge, aligned with the new dynamics between humans, machines, and algorithms. These roles will span 15 industries and 26 economies globally.

The analysis underscores a growing demand for positions such as data analysts, artificial intelligence specialists, robotics engineers, software developers, and digital transformation experts.

The analysis also highlights the emergence of unique roles in specific sectors. For instance, material engineers in the automotive industry, e-commerce specialists in consumer sectors, renewable energy engineers in the energy sector, and biologists in healthcare are expected to gain prominence. The need for professionals in cybersecurity, process automation, and Internet of Things specialists is also rising due to increasing digital risks.

However, roles like data entry clerks, administrative assistants, accountants, payroll officers, and assembly line workers are expected to face significant reductions due to automation. This highlights the ongoing challenge of equipping the global workforce with the necessary skills to meet the demands of emerging roles.

To address these challenges, the IDSC analysis recommends several strategies, including offering comprehensive reskilling programs for the current workforce, expanding educational curricula to align with future market needs, strengthening data security measures, and promoting innovation in emerging sectors like healthcare, financial technology, and renewable energy. Social safety nets and effective governance practices are also essential to mitigate economic disparities and ensure stability during periods of transition.

The report concludes by emphasizing the importance of strategic planning to ensure sustainable economic growth in tandem with technological advancements.