The region’s sales, food processing and hospitality industries are found to be highly vulnerable to job automation from rapid technological innovations, a national research has found.
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Regional Australia Institute’s Job Vulnerability in Australia research paper found that 30.1 per cent of jobs in the Cootamundra-Gundagai local area government were considered as highly vulnerable to automation.
Compared with the average ‘heartland regions’ – one of four regional categories in the research – the LGA’s high vulnerability is about eight per cent higher.
Cootamundra Development Corporation chairman John Stephens said he believed automation would have more impact on larger regional areas and cities.
“In the short-to-medium term, we probably won’t be affected because our industries are quite customised,” Mr Stephens said.
“We’re not really factory based and our trades’ custom work would take a fair bit to replicate – no two jobs are the same.
“It may be cost effective in some sectors, but it comes down to population that decides the uptake of it and I don’t think we’re big enough for it.”
In the short-to-medium term, we probably won’t be affected because our industries are quite customised.
- John Stephens, chairman of Cootamundra Development Coorporation
Similarly, Sutton Street Store owner Peter Nolan agreed, saying the investment in automation would need to be based on strong returns, which can only come from strong demand.
“We’re a long way off,” Mr Nolan said.
The store owner, who was in the meat-processing industry prior, installed Australia’s first lamb-vending machine in late 2016 that began strongly but ended after 12 months due to lack of demand.
“I don’t really know if the hospitality here will be impacted because there’s a lot of variations to jobs that still need a well trained person,” Mr Nolan said.
Mr Nolan said his experience in the meat industry included the automation of the process that failed.
“There was a robot breaking carcasses down but it was removed because it wasn’t always cutting them correctly,” Mr Nolan said.
RAI CEO Jack Archer said that while some jobs would be lost or changed due to automation, many new jobs would be created in the process and now is the time for communities to start preparing.
“It’s the first time leaders have insights at their fingertips that are both practical and useful in helping them consider the issues in their community,” Mr Archer said.
“Some regional areas are more susceptible to automation than others, and each region also has a unique set of strengths and weaknesses to deal with the changing nature of work.
“Heartland regions have the lowest percentage of highly vulnerable jobs, but are often less able to adapt to new technologies due to lack of necessary infrastructure and expertise.
“While there are less highly vulnerable jobs in rural areas, it may be more difficult for these areas to respond unless there are changes to local education services and engagement.”
While there are less highly vulnerable jobs in rural areas, it may be more difficult for these areas to respond unless there are changes to local education services and engagement.
- Jack Archer, CEO of Regional Australia Institute
Mr Archer has called for decentralised policy responses by governments to deal with the unique challenges each community would face.
The research also lists jobs that have low and moderate vulnerabilities, which the LGA is at 27.7pc and 42.2pc, respectively, compared with 29.1pc and 48.4pc for heartland regions.
School teachers, nurses and midwives, and retail managers were found to have low vulnerability to automation.
