Philexport pushes countryside employment ahead of growing automation in factories

MANILA, Philippines — The umbrella organization of exporters in the country is pushing for the creation of more employment opportunities in the countryside to prepare rural areas for Industry 4.0 or automated manufacturing.

Philippine Exporters Confederation Inc. (Philexport) president Sergio Ortiz-Luis Jr. made the call as the country is lacking in factors affecting readiness for automation such as low unemployment, labor productivity, income inequality, and high gross domestic product per capita.

“(These are) areas where the Philippines still needs to work on a lot.

However, this does not mean that we should brush this issue aside. We must understand today the challenges that we will have to face in the future, and consequently be able to draw possible directions and interventions to overcome them,” he said.

At present, he said industry stakeholders are pushing for programs and working closely with government and academe to prepare the workforce for Industry 4.0.

A study conducted by the Asian Institute of Management Rizalino S. Navarro Policy Center for Policy Competitiveness showed farmers face the highest risk to automation.

The same study showed other sectors considered most vulnerable to automation are men, youth, the less educated and low income earners.

“This puts our country at risk to the impacts of Industry 4.0 since these sectors comprise the majority of our country’s current demographics, which consequently suggests that a lot of Filipinos are foreseen to suffer the impacts that Industry 4.0 will bring,” Ortiz-Luis said.

While some sectors face risk due to automation, he said Industry 4.0 is expected to create new jobs.

“In contrast to common knowledge, Industry 4.0 will not displace the Philippine workforce completely and right away because new jobs are also created along with technological advancements; jobs that will fill the gaps of newly created technologies,” he said

He said skills such as creative intelligence, social intelligence, and critical thinking would be needed for new jobs.