Germany to address ageing workforce by recruiting robots

In the fourth quarter of 2022, Europe’s largest economy had a record high of 45.9 million employed people, however, more than half of German companies were still having difficulty finding qualified workers to fill open positions. Therefore, the country is addressing its labour shortage crisis by integrating robots and digitalisation in the workforce.

As stated by a report, the use of robots and digitalisation allows employees to focus on mentally challenging tasks and frees up time for older employees to stay in the workforce. It also enhances their productivity and efficiency, with most Germans believing that implementing more tech won’t increase their risk of job loss.

Furthermore, Germany’s Chancellor Olaf Scholz has also made digitalisation a priority, and promised to implement digital technologies across the business world. Hence, Germany-with the largest ageing population in Europe, along with Japan and South Korea, is among the countries utilising technology in the workplace as ageing populations tend to adopt digitalisation more quickly.

Additionally, working with robots and digitalisation entail many benefits for the workforce:

Improving productivity

According to Gallup research conducted in 2018, 37 per cent of Germans believed that technological advancements would increase their work productivity. Only 1 per cent believed it would decrease productivity, while 62 per cent felt that technology would have no impact.

The implementation of digitalisation can vary from one organisation to another, ranging from the use of plate-carrying robots, self-checkout machines at grocery stores, or even online platforms for communication between colleagues. Generally, technology is incorporated to make workflow more efficient and cost-effective.

It is also said that the use of modern technologies correlates with economic growth and labour market participation in most societies. While automation can save labour, it also creates opportunities for consumers and firms to use their resources differently. Additionally, since there’s a strong complementarity between digital technologies and economic activities, the report also suggests there will not be significant job losses due to digitalisation.

As per the research, Germans do not fear that robots will take their jobs. Only 10 per cent of those surveyed believed that increasing the use of technology would increase the risk of job loss, while 6 per cent felt that it would decrease the likelihood of this happening. The rest of the participants believed that deploying more technology would not have an impact.

While automation can save labour, it also creates opportunities for consumers and firms to use their resources differently. Additionally, since there’s a strong complementarity between digital technologies and economic activities, the report also suggests there will not be significant job losses due to digitalisation.

Stable hybrid future

The goal of integrating robots into the workplace is to augment human capabilities, not replace them, and Germany is looking to raise its state pension age from 65 to 67 in the coming years, which will result in increasing numbers of older people still working.
The report also highlights that robots can free up human workers to focus on more complex tasks, leading to more fulfilling and engaging jobs.

Germany has the largest stock of robots in the European Union, accounting for almost half of the EU’s total supply, being used in sectors like automotive, food and beverage, industrial machinery, and electronics industries. Additionally, it was also estimated that there were more than 20 robots per 1,000 manufacturing workers in Germany in 2015, and this number is expected to have increased in the last eight years.

However, Germany faces a digital skills gap, with some companies lagging behind in adopting digital technologies. As per a report, 48.92 per cent of the German population has basic or above basic digital skills, which is below the EU average. Gallup’s poll of 1,000 Germans showed that 70% would not feel safe being driven in a car without a human driver. Additionally, companies face regulatory hurdles to ensure user safety before implementing new technology, making digitalisation a seamless part of the working day.