The world’s biggest employers are looking for people to fill positions in their factories, warehouses, and other facilities, as demand for skilled workers grows and demand for knowledge is expected to continue.
The report, “The Future of the World’s Manufacturing and Services: Industrial Production and Service in 2020,” by Deloitte Touche Tohmatsu, forecasts that by 2025, industrial manufacturing employment will grow by 3 percent to 4 percent, while service jobs will expand by 2 percent to 3 percent, with the average increase in workforce from 2019 to 2021 being 2.8 percent.
But the report warns that while manufacturing jobs will grow, the growth will slow due to automation, automation’s impact on the economy, and rising costs.
“The future of the industrial manufacturing industry is likely to be a bleak one,” the report states.
“With technological advances being made in robotics, automated assembly lines, and automated data processing, the world’s largest manufacturing companies are set to compete with each other to produce, ship, and distribute goods at high margins and with a low-cost of production.”
Deloitte’s report estimates that by 2020, there will be 9.3 million industrial manufacturing jobs, while only 5.4 million service jobs.
The report notes that services jobs are expected to grow at an average of 2.5 percent a year for the next three decades.
“By 2060, services will account for 12.5% of the workforce, up from 7.4% in 2019, while manufacturing will account of 6.2% of global employment, down from 10.7% in 2020.”
As service and manufacturing jobs are not expected to be replaced by robotics, there is a risk that the world will continue to grow the number of services jobs while manufacturing employment shrinks,” Deloittes report states, adding that as service jobs have declined, manufacturing jobs have grown.
Deloittés report also forecasts that the number one cause of industrial factory closures is outsourcing, with services, transportation, and information services accounting for 78 percent of industrial closure.”
Industrial factories will close around the world in 2020, with Japan leading the way with the largest number of closures in 2024.”
A significant number of those closing will be in the service sector, with transportation accounting for more than 80 percent of the closing of service companies.”
Industrial factories will close around the world in 2020, with Japan leading the way with the largest number of closures in 2024.
The Delois say the biggest threats to the global economy and to jobs come from technology, automation, and the financial crisis.
“These challenges will persist as industrial manufacturing is the worlds largest industry and the biggest contributor to GDP,” the study states.
Delouittes industrial workforce forecast: By 2060: 6.5 million industrial workforce; 9.2 million service workforce; 3.4 percent automation, 2.2 percent robotics; 1.8 million outsourcing, 1.7 million trade; 4.1 million new jobs in the manufacturing industrySource: Deloite