Pissarides: “It’s not true that automation will destroy 70% of jobs, it will be an adaptation and new jobs will be created”

This was assured by the Cypriot economist during his participation in the conference. Forum + Europe, that they organized this monday INFORMATION and Casa MediterraneoIt is supported by the Alicante Chamber of Commerce, the European Union Intellectual Property Office (EUIPO), the Miguel Hernández University, the Rei Jaume I Awards Foundation and the Generalitat Valenciana.

An act of professor of Fundamentals of Economic Analysis at the University of Alicante and promoting the Jaume I Prize, Carmen Smithand the director of Casa Mediterráneo, Andres PerelloWhile he was the director of BİLGİ Club, Tony Cabotserved as moderator.

considered as one of these top unemployment experts in the world and the frictions that occur in the labor market to bring supply and demand together – a work that earned him a Nobel Prize in 2010 along with researchers Peter Diamond (from Massachusetts Institute of Technology, MIT) and Dale Mortensen (from Northwest University). -, Pissarides spent most of the last few years effects of robotization and automation in the job market. Thus, he kept himself halfway between those who believe that new technologies will solve all problems and those who believe that automation will destroy most jobs.

“What they say we’re going to lose 70% of jobs with automation This is not real. More precisely, what will happen? an adaptation“, also assured the professor at the London School of Economics. He was also convinced that they would produce. new job positions In other sectors – some not even yet – this will make it possible to make up for what has been destroyed by new technologies.

New employment niches

So he reminded me that in the 1930s, once all demand for certain industrial goods, such as household appliances, was met, it would be very difficult to continue growing. However, the economy continued to grow, largely thanks to it. new services that were not considered at the time, as mass tourism.

And that’s exactly what the economist predicts will happen now. Thus, he underlined the importance of services. social Security home service with an increasingly aging population, in addition to areas such as health wave Education. He also highlighted the opportunities emerging around the luxury market, where “8% of the population spends a lot of money”.

Likewise, the Pissarides environmental protection and waste management as another future employment source in addition to tourism, which in his view will continue to grow. He also reminded that in some of these sectors – such as personal assistants or other mechanical jobs – it is already difficult to find sufficient staff.

Of course, he admitted transition period Until the transition to automation takes place, efforts will need to be made to assist workers who lose their jobs because of this. Especially when it comes to less skilled workers. He thus drew attention to the experience of countries such as Denmark in policies that have significant economic costs in reverting workers to new sectors. Thus, he argued to temporarily tax the highest incomes or for tech companies to cover that expense and prevent inequality from rising.

He also stated that these changes will be necessary. “strong governments”those who have to provide the necessary training to face the new reality of the labor market, but also depend on many of these sectors that will create jobs in the future, such as health or social services.

He also advocated “finding new ways”. to increase the quality of the work to be created” and reminded, for example, that there are many jobs in the industry. gig economy The derivative of platforms like Uber or Deliveroo is no longer tied to an “organized workforce,” meaning new forms of protection for these workers must be sought.

Likewise, Pissarides sought more support for self-employment and more agility from managements.

32 hour shift

As for working time, the Nobel Prize winner in Economics is convinced that: “before or after” The 32-hour workday will eventually come, which is something he finds positive because it will leave more free time for leisure and travel, which will create new demands. But what is not so clear for Christopher Pissarides is that this conference is a reduction of daily working hours, or as a concentrate travel in four daysas advocated by the Generalitat, for example.

Thus, he pointed problems It was asked whether this last option could lead to parents and should also be implemented in education centres, which for a significant portion of the population could cause inconvenience to the worker on weekends.

On the other hand, he has definitely been in favor of continuing the promotion. telecommunicationbecause she thought it would make it easier once the pandemic is over reconciliation of family and personal life – something that will benefit women in particular – but it will also make things easier for the elderly. And as he points out, with increasing life expectancy, an increasing proportion of workers will extend their working lifespan by more than 65 years.

Among those attending Forum + Europe this Monday are Economy Minister Rafa Climent; Jose Juan López Espín, Vice-Chancellor of Elche Miguel Hérnandez University; Cabinet member of the executive director of Euipo Marano Ramírez; Sindic de Comptes, Antonio Mira-Perceval; Carlos Baño, vice-president of the Alicante Chamber and head of Facpyme; María Jesús Arias, director of Grupo Vectalia; Luis Consuegra, Mercadona’s provincial director of foreign affairs; or Susana de Juan, Ineca Communications Director.

Forum + Europe, European Commission Vice-President Frans Timmermans; former EU Economic Commissioner Joaquín Almunia; or Josep Borrell, then Secretary of State and current Union High Representative for Foreign Affairs.