Digitalization of Industrial Jobs in Germany: Prospects for Human-Oriented Work Design

18 October 2016
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Industry 4.0, i.e., the rise of technology in Germany’s manufacturing industry, has had challenging implications for employment and opportunities. This report draws upon expert insights to explore its impact, and proposes job design principles for adapting to the changing landscape.

The diffusion of digital technologies in manufacturing is going to have profound implications for employment and skill requirements, particularly in the German economy, where manufacturing contributes to about 22 percent of the Gross Domestic Product (GDP). The increased use of technology is expected to reshape production processes, potentially leading to significant social and economic disruptions. The current era is often described as the “second machine age”, and the “third industrial revolution”. In Germany, it is referred to as the “fourth industrial revolution” or “Industry 4.0”.

This report analyses expert opinions and existing literature to assess the labour market implications of increased digital technology utilisation. The primary focus is on changes in industrial work, particularly within the context of the intense debates occurring in Germany surrounding Industry 4.0.

The diffusion of Industry 4.0 systems and growing digitalisation is already altering the landscape of work, and the consequences it will have in the future are challenging to predict. Experts hold diverse viewpoints on the impact of technology diffusion. On the one hand, there is optimism about its positive effects on labour, skills, and income. On the other hand, concerns exist regarding potential “deskilling” of jobs and job losses. This report addresses questions related to the evolution of tasks in industrial work and how this transformation is reshaping the nature of employment. The author proposes a response to technological change rooted in the principles of job design to guide the future of industrial work, while maintaining a focus on skills.

The analysis draws from existing research on industrial work and labour, incorporating insights from semi-structured interviews with policymakers, industrial association representatives, labour unions, and management personnel from manufacturing companies in Germany. While this report primarily pertains to the German context, it holds valuable lessons that can be extrapolated for other countries.

This report was featured as a chapter in “Transformations in Technology, Transformations in Work”- a joint report co-authored by the global partners of JustJobs Network.