AS we are still adjusting to the job challenges of the Third Industrial Revolution, so let’s familiarize ourselves what kind of further upskilling will be needed as we move closer to the Fourth Industrial Revolution.
Let’s have a look at the skills of today and skills of tomorrow:
According to Harvard Business Review, the Fourth Industrial Revolution may bring about more difficult challenges as it automates not only blue collar but also white-collar jobs. The authors argued that the solutions remain the same, that is, there is a need to reskill or upskill in order to avoid displacement and raise wages. They also note that this transition is never easy.
On top of basic digital skills, the future of work would also require the need to emphasize training toward harnessing “soft skills” which are innate to humans, but which are not for machines, or artificial intelligence (AI). It is also anticipated that soft skills will be more in demand in the near future as the need for humans to work alongside intelligence machines increases as well. These soft skills include creativity, emotional intelligence, analytical and critical thinking, decision making, interpersonal skills, communication, collaboration, and quick adaptiveness. The harnessing of soft skills helps keep work “human centric” as we prepare to work with machines and AI.
“Hard skills,” on the other hand, are focused on one’s specialization (e.g. baking a loaf, driving a vehicle) which can be vulnerable to developing technology, however, soft skills are more general, flexible, and can withstand career shifts. These skills have also been referred to as “transversal” skills,” or skills which can be improved through lifelong learning and can allow a worker to be adaptable to change and shifts in the job market.
One of the main challenges of reskilling and upskilling one’s employees is the fact that they are, or will be, trained while they are working. A representative we interviewed from the Information Technology and Business Process Association of the Philippines (IBPAP) described the process as “changing the tires while the car is running.” Workers are being trained as they work and as companies also adapt to AI.
According to Accenture’s report, it is not a choice between AI and the role of the worker but both adaptation and training should be done at the same time: “Accenture puts 60 percent of the money it saves from investments from AI into its training programs. Most AI technology will still need human workers to operate them while some AI technology can help human work, or jobs, be more efficient without removing their roles. However, the importance of addressing skill gaps of the current and prospective work force to work better with machines still needs to be done and at a larger scale.”
The Philippines will have its own set of challenges in adapting to the emerging technologies brought about by the Fourth Industrial Revolution. A study done by the Philippine Institute of Development Studies noted the possible transition in the Philippines away from a recent growth sector in business-process outsourcing, to growth in the application of big data which will be one of the most relevant industries in the Fourth Industrial Revolution: “If projections on future required employment on data science and Big Data analytics are realistic, this means that the Philippines is on the brink of transitioning from its beginnings as a call-center provider and BPO hub to a processing hub of Big Data.”
The number of new jobs which can be created in the next five years is expected to increase but will be driven by more medium-high skill level criteria, which will include more cognitive, management, strategic, and problem solving skills. The focus will also be in the areas of financial analytics and programming. The private sector is beginning to respond to these market signals, particularly through reskilling and upskilling initiatives.
However, in terms of government funding, IBPAP assessed that if a mass reskilling and up skilling initiative were to be done by the government, around P40 billion would be required (either of government funds, or of foreign assistance).
We were happy to see that the 17th Congress under the Trabaho bill allotted P5 billion annual assistance for reskilling and upskilling of workers. Unfortunately, that provision was removed in the latest version of the second tax reform package, but alternative incentives were put in place of the initial provision.
During an interview with Dan Lachica, president of the Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI) Foundation, he highlighted the willingness of the sector to reskill and upskill.
According to Mr. Lachica, due to the technical complications which vary per manufacturing company, skills training is essential at almost all levels. He admits that “smart factories” are starting to emerge but AI technology is more focused on detecting troubleshooting issues in the assembly line but has not made much impact yet on manual labor.
Mr. Lachica also discussed the involvement of the youth in manufacturing. Member companies of SEIPI are open to training and employing high school graduates (preferably 18 and older) after they train with the Technical Education and Skills Development Authority. He also noted that the demand will shift for workers who can participate in maintenance of advanced machines as well as programmers as technological developments accelerate.
That is most of the good news. There is more that we can dig into with respect to what the government and the private sector can do together to help people adjust to these changes. I will talk about those ideas in next week’s column.
The Future of Work–skills of today and tomorrow
