Industry 4.0 and the Future of the Labor Market

Abstract

After the introduction of computers and the Internet into our lives with the Third Industrial Revolution, digital developments such as wireless networks, computing, cloud infrastructures, big data technologies, artificial intelligence-enhanced robots, internet of things (IoT), and cyber-physical systems (CPS) are starting of a new technological age. The Fourth Industrial Revolution, known as Industry 4.0, will initiate a transformation in production models, as in many areas, with its technological tools. The aforementioned components of Industry 4.0, cyber-physical systems (CPS), Internet of Things (IoT), and cloud computing, artificial intelligence and robotic technologies have transformed production and changed the nature of many businesses. This digital transformation puts pressure on the labor market and the transformation of the labor factor and stands before us as a multidimensional problem that needs to be resolved. While these technologies increase competitiveness in terms of cost advantage and efficiency in production, they bring about changes in the production structure. The technology mentioned in all areas of life is planned to serve the "unmanned" mission. With unmanned transportation vehicles, educational institutions, hospitals, factories and many others, human labor will be replaced by artificial intelligence wonder robots, robotic arms and machines in daily life. The perfect example of full automation, dark factories, robots with artificial intelligence technology, robotic arms and machines that communicate with each other, seem to seriously shake the place of labor in production. In this process, the following question comes to mind: Will the machines that are expected to replace labor affect employment negatively or is it possible for labor to keep up with this technological transformation? Considering the unmanned mission of technological transformation, it means that this situation will negatively affect the employment of the labor factor and technological unemployment will increase. However, the disadvantaged position of labor in an environment with a high level of automation should be evaluated in terms of the characteristics of the current labor market. The jobs of the future undergoing technological transformation require more technological knowledge and human skills. Although technological developments leave production to artificial intelligence, robots and smart machines, human intelligence is still needed behind these technological wonders. In all production and service units built on full automation, there will always be a need for technicians and engineers working in the background of the flawless operation of that technology. Although this shows that unskilled labor force will lose the war against technology, it shows that there is always hope for qualified labor force. In the study, the current situation is revealed by making a literature study on the effect of technological developments in the labor market, and the effects of this technological transformation on the labor market are mentioned by giving information about the concept of industry 4.0 and its components.
 Possible changes in the labor market due to the intensive use of smart technologies in the production of goods and services are also included.