Technological wave and the labor market

There's no doubt that the infiltration of 5G technology will change the way we work - but what exactly will change, and should tech professionals, as well as those from other industries, be concerned?

5G is the present, the network is infrastructurally strengthening every day everywhere around us, regardless of the set back that came in the form of the Covid-19 pandemic. An increasing number of technological and non-technological sectors are taking the benefits of progress and riding the wave of rapid data transfer, modernization and digitization of business. 

Much of the discussion surrounding 5G focuses on what effect it will have on the way the world does business or the way consumers interact with technology. This includes the main segment on which 5G can have the greatest impact, namely workers and the labor market.

5G promises big changes in many industries, visible at all levels of business verticals. All professionals who work with technology, from customer service operators to factory workers in food processing plants, will feel the effects of 5G changes. 

Different types of businesses will approach 5G in different ways. While for some there won't be many changes because they are already doing business with a high degree of digitization, for others the impact will be huge, which will be gradually shown through years of getting to know and applying the technology. 

Until the advent of 4G networks, we didn't even think about services like Uber or Wolt, but they came gradually through the increasingly strong use of the benefits of the network. Thus, the widespread use of 5G technology will probably take five to seven years

"Future looks bright" or a positive scenario about how 5G will affect the future of work?

5G is real and present, but there is no need to panic. We have a few years to prepare for all the business and life changes it will bring. Widespread remote work has increased the need for wider access to the Internet, including 5G networks whose latency makes a drastic leap forward in remote professions. The pandemic itself has accelerated and changed the way we study, work and socialize with colleagues, but what awaits us all in the years to come?

In the reports of numerous experts related to the field, we can discern positive forecasts and predictions that the wider implementation of 5G technologies will lead to job growth, better jobs and reduced economic inequality. In this segment, we stick to the analysis of these positive changes, which can be reduced to three key points.

More jobs

5G technology is called "the catalyst of the next industrial revolution". Bloomberg's Nico Grant said there is "high expectation" that 5G will significantly push the Internet of Things (IoT) forward. In addition to this, we can also expect a greater spread of "smart" factories that produce such devices. 

Currently, machines in factories send and receive data over slow, low-bandwidth, high-latency networks. 5G will likely replace technologies like Ethernet, WiFi and 4G LTE, making it more cost-effective to buy and deploy robots. 

The end result is probably smarter factories with more automation. Although there is widespread concern that automation will lead to lower wages and job losses, the data show that the relationship between automation and employment and wages is not simple and one-sided. 

Although automation replaces existing jobs, it also creates new jobs. 5G technological advances are expected to create 4.6 million more jobs over 15 years than would be achieved through some normal economic growth and cycles. This is indicated by the fact that the construction of the 5G network by May 2020 has created 106,000 new jobs in the US alone.

Due to the very nature of the technology, 5G is expected to significantly boost employment in agriculture, construction, utilities, manufacturing, transportation and storage, education services, healthcare, and public administration. While increased automation is likely to have a positive effect on overall job growth, it is important to note that it may also widen existing disparities between high industrial growth cities and rural areas.

Better jobs

Of course, no one denies initial job losses due to increased automation of various processes, but the jobs created by 5G are expected to be better paid than those we are likely to lose. The compensatory force associated with 5G is crucial in the post-Covid-19 world, where in a short time we have focused on fast online learning and remote work. 

Today, most companies are focused on automating every step of the business and directing workers to develop the skills of the future that are linked to the aegis of soft skills. Engineers and developers will be in particular demand to make 5G use a reality. The problem lies in whether the education system and all the additional training options will be able to respond to the needs quickly enough.

Reduction of economic inequality

The vast majority of new high-paying jobs are going to highly skilled workers like software developers. Technologies