ADB proposes solutions to avoid job loss during Industry 5.0 shift
In a special supplement titled “Capturing the Digital Economy: A proposed measurement framework and its applications,” experts from the Asian Development Bank (ADB) concluded that a successful transition to Industry 5.0 from Industry 4.0 will be possible if workers are able to be re-skilled and retrained.
While the technological advancements seem like a good thing, the ADB noted that this will impact the workforce due to reduced labor demand.
However, the company added that “positive job impacts coming from consumption and new labor requirements may compensate.”
Further, the Manila-based multilateral development bank stated the digital economy surged during the pandemic, citing the Philippines as among the countries that were able to fast-track its growth. ADB’s data further revealed that the digital economy accounted for 17 to 35 per cent of the neighboring countries’ GDP, including Thailand, Indonesia, and Malaysia.
The development bank pointed out that it is important to plan “efforts to better measure the digital economy” and a framework must be created to estimate its effect on the economy.
