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The Giant Task of Reskilling China

This is a syndicated repost courtesy of Statista | Infographics. To view original, click here. Reposted with permission.

According to a report by McKinsey & Company, a massive number of Chinese workers might need to reskill in the light of increased workplace automation until 2030. In the report’s early automation scenario, 220 million Chinese workers would have to shift occupations, representing 36 percent of the world’s workforce projected to undergo such a change in the given time frame.

China has been taking huge steps towards transforming into a service society after years of relying on industrial production that has supplied the world with cheap merchandise. Due to the country’s population size, this means millions of work hours shifting from manual and basic cognitive skills to more advanced jobs.

According to the report’s midpoint scenario, a net of 144 billion hours of manual labor as well as 25 billion hours utilizing basic cognitive skills will be lost in China between 2018 and 2030. Higher cognitive skills and – to an even bigger extent – work hours tied to social and emotional skills as well as technological skills are expected to be gained. Even within these categories, the needs of employers will change significantly, which will cause additional reskilling to take place.

Chinese migrant workers, who come to the cities from rural areas, are expected to be heavily affected by the reskilling challenge which will affect 22 to 40 percent of their work, according to the report. Despite the changes brought about by automation, the number of Chinese migrant workers is expected to rise from 291 million to 331 million in 2030.

This chart shows changes to workplaces in China and the world through automation between 2018 and 2030.

reskilling China

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

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