By 2025, millions of Japanese will be out of work

In the future robots will displace “real” workers.

The demand for industrial robotics in Japan is growing, and investment in it industry is increasing. While there is no unemployment problem, but with the development of technology, the number of unsettled citizens will reach record levels.

In June the unemployment rate in Japan was around 3%. On average, one applicant has 1.51 vacancies. The country is also in a state of demographic risk due to a rapidly aging population.

The government expects that in 2017 the number of able-bodied citizens will reach 76 million, and by 2065 will be reduced to 45 million already

A survey from the Bank of Japan, in 2017, the number of companies that will increase investments in technology, will increase by 17.5% and reached a record level. And the reason for this is the shortage of manpower.

To improve performance and increase profits, employers have to resort to robotics and automation.

As a result of influence of these factors in Japan to automation have been treated as a useful tool that will help save the economy. Japan is already among the top three leading manufacturers of industrial robotics, but the scale of supply continue to grow. In the second quarter of 2017, the Japanese equipment manufacturers received orders in the amount of 171.7 billion yen (~$1.57 billion) — 49% more than in the same period last year. At the end of June the total amount of orders was $ 384,3 billion yen (~$3.52 billion).

Many manufacturers can’t cope with the number of deliveries. At the same time, investments in it development are growing. According to the forecasts of the development Bank of Japan, this year investments in this sector will grow by 28% and will be 558,2 billion yen (~$5.2 billion).

All of these factors have long been considered positive in the context of the demographic and economic situation in Japan. But a new study by the Recruit Works Institute indicates possible risks. According to analysts, the accelerated pace of automation caused by the shortage of labour will lead to increase in unemployment to 5.8% by 2025. That was a record for Japan.

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