The Consequences of Industry 4.0 for the Labour Market and Education

Abstract

This study focuses on the economic effects of the phenomenon of ``Industry 4.0'', the digitalisation of the production processes. These developments involve considerable challenges for companies as well as for politics. This five-step scenario analysis begins with the impacts of increased investments in equipment (1) by companies and in the network infrastructure (2) by the government on the overall economy and the labour market. On this basis, we continue to model the consequential personnel and material costs of the companies (3) and a changed pattern of demand according to occupations and skills (4). The cumulative effects of these four partial scenarios are compared to a baseline scenario, which does not contain an advanced developmental path to Industry 4.0. In another scenario, the effects on the labour market of a potentially increasing demand for goods (5) are taken into consideration and also contrasted with the baseline scenario.