A Committee for Economic Development of Australia (CEDA) report has found that Australia and the world is on the cusp of a new but very different industrial revolution and it is important that we are planning now to ensure our economy does not get left behind.
According to CEDA Chief Executive Stephen Martin researchers have examined the probability of job losses due to computerisation and automation in Australia and in each local government area across the country.
“This research shows that in some parts of rural and regional Australia in particular there is a high likelihood of job losses being over 60 per cent,” he said.
Professor Martin said there will be new jobs and industries that emerge but if Australia is not planning and investing in the right areas we will get left behind.
“The pace of technological advancement in the last 20 years has been unprecedented and that pace is likely to continue for the next 20 years,” he said.
“While we have seen automation replace some jobs in areas such as agriculture, mining and manufacturing, other areas where we are likely to see change are, for example, the health sector, which to date has remained largely untouched by technological change,” he said.
“Creating a culture of innovation must be driven by the private sector, educational institutions and government. However, government must lead the way with clear and detailed education, innovation and technology policies that are funded adequately.
“Our labour market will be fundamentally reshaped by the scope and breadth of technological change, and if we do not embrace massive economic reform and focus on incentivising innovation, we will simply be left behind in an increasingly competitive global marketplace.
“Currently the commitment needed to link education and innovation policy with funding is appalling compared to other countries and Australia’s industry innovation strategy is woefully underfunded compared to global competitors.
“For example the five Industry Growth Centres announced last year by the Federal Government should be critical in driving innovation but only $190 million has been allocated over four years.
“In comparison, the UK Catapult Centres, which they are based on, have been allocated almost $3 billion over the same period.”
