Automation and Artificial Intelligence (AI) pressure factory labour market

The technological interruption brought about via automated systems and artificial intelligence (AI) is pressuring the nation’s labour market, especially the manufacturing sector, say business operators.

Numerous troublesome factors change rapidly, so organizations ought to set themselves up, said Thavorn Chalassathien, chairman of the Human Capacity Building Institute.

Mr Thavorn said Thailand’s labour outlook for 2019 will see further joblessness as many organizations receive automated systems and AI at their facilities to supplant human workers.

There are numerous elements in utilizing higher innovation, for example, labour shortages, skill mismatches and higher wages, he said.

The institute, part of the Federation of Thai Industries, led a survey and found that numerous organizations are requesting vocational workers, for example, technicians and engineers as they coordinate the new targeted industries that the government is promoting.

“Roughly 30% of vocational students in Thailand’s educational institutions can serve the labour market, while the majority at 70% are mismatched in terms of skills,” Mr Thavorn said.

He said each organization ought to give training programmes to build up their current HR in the midst of the present work lack.

The government is promoting 12 focused on businesses: new-generation automobiles; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; medical services; defence; and education.

“As a result, new manpower should match these S-curve industries in the near future,” Mr Thavorn said.

Tanit Sorat, vice-chairman of the National Labor Development Advisory Council, said Thailand’s joblessness rate in 2019 will achieve 1.2-1.3% or about 400,000-500,000 workers from an all out number of 38 million laborers in the nation.

“The unemployment rate will increase from 2018 at 1%, and most of those will come from the manufacturing sector,” said Mr Tanit, who is also vice-chairman of the Employers’ Confederation of Thai Trade and Industry.

Numerous organizations need to modify their business to get automated systems and AI in line with the Industry 4.0 era, which is changing the worldwide manufacturing sector.

“New technology and innovation can mitigate the problem of unskilled workers, which means that many such workers are expected to lose their jobs in the near future,” Mr Tanit said.

He said that since the worldwide economy is slowing this year, numerous makers all around won’t utilize new staff such as fresh graduate students.

Mr Tanit said the joblessness rate will step by step ascend from the principal quarter of 2019 in light of the fact that some educational institutions will turn out new graduate students in March.

University students will graduate in May.