Productivity
has become a crucial concept, considered one of the main drivers of economic
growth and competitiveness. However, its definition continues to evolve.
For
example, the go-to measure in the past was apparent labor productivity: how
much a worker or an hour of work could produce. But today, it is losing its
edge.
Statistics
show that the number of workers needed at S&P
500 index companies to make $1 million in revenue has dropped
significantly, from 4 workers in 2000 to just two today.
Why this
drastic change? In short, technological advances. They allow us to perform
tasks faster and more consistently than manual labor, which translates into
greater efficiency and productivity.
Using
automated machines and systems instead of manual work brings many advantages. A
high level of precision and accuracy reduces errors related to human fatigue or
variability.
And yes,
the initial cost of the technology may be high, but it saves money in the long
run. In addition, companies avoid dealing with unions and face fewer potential
lawsuits in the future.
The list
of advantages is endless, but the bottom line is clear. No wonder that by 2030,
some 800 million jobs performed by humans are expected to be replaced by
artificial intelligence.
So, what
is the plan for people?
Embracing
technology brings with it many advantages but also challenges, such as
job displacement, the need for retraining, and ethical issues.
Faced
with the imminent threat of being replaced by smart technologies, we have
already seen significant strikes, such as those of the screenwriters’ and
actors’ guilds in the United States.
So far,
there seems to be agreement, but the problem will likely resurface. Drivers,
from truck to cab drivers, will also be affected by the rise of autopilot
technology.
To avoid
crashing on the runway, they will have to acquire new skills to avoid crashing
on the runways. But we are likely to see more strikes and protests against technology.
Can
social unrest slow down technical progress?
Western
regulators may have to enact laws to protect people, but it won’t be like it
used to be. Technology will end up playing an even bigger role.
But
there is no need to storm the offices of Google or Microsoft. As in previous
technology waves, some industries will disappear, but new ones will hopefully
emerge.
The key
is to stay on top of trends, continue to grow personally and professionally,
and, of course, have a safety net for a rainy day.
To avoid
losing value, investments should be smart – not rash, like the current FOMO
trend – with an eye on the years ahead, perhaps in corporate solid bonds.
As for
those looking to retire early by speculating on Bitcoin, meme coins, and tech
stocks, it is crucial to follow news flow with the
US economic calendar and technical indicators such as resistance and
support levels.