Productivity has become a crucial concept, considered one of the main drivers of economic growth and competitiveness. However, its definition continues to evolve.
For example, the go-to measure in the past was apparent labor productivity: how much a worker or an hour of work could produce. But today, it is losing its edge.
Statistics show that the number of workers needed at S&P 500 index companies to make $1 million in revenue has dropped significantly, from 4 workers in 2000 to just two today.
Why this drastic change? In short, technological advances. They allow us to perform tasks faster and more consistently than manual labor, which translates into greater efficiency and productivity.
Using automated machines and systems instead of manual work brings many advantages. A high level of precision and accuracy reduces errors related to human fatigue or variability.
And yes, the initial cost of the technology may be high, but it saves money in the long run. In addition, companies avoid dealing with unions and face fewer potential lawsuits in the future.
The list of advantages is endless, but the bottom line is clear. No wonder that by 2030, some 800 million jobs performed by humans are expected to be replaced by artificial intelligence.
So, what is the plan for people?
Embracing technology brings with it many advantages but also challenges, such as job displacement, the need for retraining, and ethical issues.
Faced with the imminent threat of being replaced by smart technologies, we have already seen significant strikes, such as those of the screenwriters' and actors' guilds in the United States.
So far, there seems to be agreement, but the problem will likely resurface. Drivers, from truck to cab drivers, will also be affected by the rise of autopilot technology.
To avoid crashing on the runway, they will have to acquire new skills to avoid crashing on the runways. But we are likely to see more strikes and protests against technology.
Can social unrest slow down technical progress?
Western regulators may have to enact laws to protect people, but it won't be like it used to be. Technology will end up playing an even bigger role.
But there is no need to storm the offices of Google or Microsoft. As in previous technology waves, some industries will disappear, but new ones will hopefully emerge.
The key is to stay on top of trends, continue to grow personally and professionally, and, of course, have a safety net for a rainy day.
To avoid losing value, investments should be smart - not rash, like the current FOMO trend - with an eye on the years ahead, perhaps in corporate solid bonds.
As for those looking to retire early by speculating on Bitcoin, meme coins, and tech stocks, it is crucial to follow news flow with the US economic calendar and technical indicators such as resistance and support levels.