How RPA contributes to a future-proof labor market

Recently, McKinsey released a report on the Dutch labor market. The Netherlands currently has an active workforce of 9.6 million people, but faces increasing challenges such as aging and labour market tightness. McKinsey states that the Netherlands cannot achieve its goals in the areas of housing, health and the environment without addressing these labour market problems. This is possible through higher productivity growth, technology and a “train of job transitions” (continuous retraining and development towards more productive jobs). A crucial area for transforming the labor market is increasing labor productivity through technology. Robotic Process Automation (RPA) plays a key role here. According to McKinsey, the acceleration of innovative technologies such as RPA can quadruple productivity growth, largely solving the shortage. But how does this work exactly and how can it make our labor market more future-proof? In this blog, we explain the challenges of the Dutch labor market and how RPA can help solve them (Read more about what here) RPA is).

The Challenges of the Dutch Labour Market

According to McKinsey's recently released report, there are several trends that are putting pressure on the labor market:

• Increasing labour market tightness: The increasing number of vacancies per unemployed person is making it increasingly difficult for companies to find qualified staff.
• Ageing of the population: Ageing is leading to a decline in the number of workers and an increasing demand for care.
• Decreasing productivity growth: Declining productivity is hampering economic growth and the ability to meet future labour demand, which will only increase.

In addition, factors such as increasing income inequality, declining educational quality and health problems are worsening the situation and increasing pressure on the labor market.

RPA as a Solution to Labour Market Challenges

The challenges in the labor market consist mainly of increasing tightness and declining productivity. McKinsey states that accelerating the introduction of innovative technologies can quadruple productivity growth, largely solving the shortage. RPA is one such innovative technology that helps companies increase productivity without hiring more staff. By implementing RPA, companies can better respond to the challenges of a tight labor market and an aging workforce, while strengthening their competitive position.

Increasing Labour Productivity:

RPA can automate routine and repetitive tasks, allowing employees to focus on more complex and valuable work. This not only leads to higher productivity, but also to a more efficient use of the available staff. According to McKinsey, technological innovation, including RPA, can quadruple productivity growth in the Netherlands from 0.4% to 1.8% per year.

Reducing the Labour Market Tightness:

RPA reduces the dependency on human capital for repetitive tasks, allowing companies to operate more efficiently with fewer staff. This helps to alleviate the tightness in the labor market and reduce the pressure on employees.

Supporting the 'Train of Job Transitions':

McKinsey expects that the number of people who need to be retrained annually will increase by a factor of 1.4. The demand for jobs with higher productivity will increase significantly in the future. RPA makes it possible to retrain existing employees and allow them to move on to more advanced positions. This promotes mobility in the labour market and helps fill vacancies that require advanced skills. McKinsey stresses the importance of a “train of job transitions” in which employees move sideways or up to jobs with higher productivity.

Conclusion

The future-proofing of the Dutch labor market depends heavily on the extent to which technological innovations, such as RPA, are embraced and integrated into business. By investing in RPA, the Netherlands can increase productivity, reduce labour market tightness and prepare employees for a future where more complex skills are key. Today, many companies face problems such as understaffing, declining productivity and difficulty retraining. RPA can play a key role in addressing these challenges by automating repetitive tasks. Making the labor market more future-proof is a common responsibility of the government, companies and employees, and this responsibility will become increasingly important in the coming years.

Curious about how RPA can help make your company more future-proof? Plan feel free to have a chat with us to see what RPA can do for your company.

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