Alarm: Technology is putting Albanians out of work

The Albanian Group”, based in Berat, specialising for paper bags and work clothes, with the message system, is one of the biggest exporters in the country. The company has about a thousand employees and is among the top 30 employers in the country. As a result, its leaders were looking for about 300 employees for the new department. But as they failed to find qualified workforce and found no support for their training, Lumir Oso, the company's director says that he decided to buy a sophisticated machine in Germany, costing about 1m euros, which with a pencil crash replaced the work of 300 employees.

Arben Shkodra, secretary of the Association of Producers, told “Monitor” that “what we've heard is spoken at the World Economic Forum for the Fourth Industrial Revolution, though it seems distant, is instinctively implemented by Albanian entrepreneurs”.
We already have our industries, or our economy, are oriented towards the region and the world. Everything that happens in technological changes if not for two or three months, within six months it begins to be adopted in Albania, Shkodra told “Monitor”.

However, according to him, the approach that Albanian companies have with technology is linked, first with the lack of qualified power for quality and low cost jobs, and secondly, to copying technologies that partner companies use abroad.

Even for Rezart Prispin, professor of innovation at the Faculty of Economics and Scientific Research, Albania is still far from technological developments in the world. According to the professor, in Albania, although many firms have attempted to introduce latest word technologies, invest, buy machinery, increase efficiency, not necessarily lower jobs. He says the problem is that companies do not have as much absorption capacity when they use new technologies and are not efficient in its absorption. If investment doesn't translate into income any more, then there's no efficiency”, the priest told “Monitor”.

To begin with, the automation process began as a measure for reducing costs, but it was later seen that automation of processes increased company productivity, improved work quality, and reduced routine tasks, eliminating human error as well.

Digital Revolution in Banks

In 2009, ProCredit had 867 employees and 42 branches, according to statistics from the Albanian Banks Association. At the end of 2017, he counted 202 employees and 7 branches. The bank has been one of the pioneers in automation of processes in the Albanian banking sector.

ProCredit put the latest technology into use for the first time, through which they have managed to completely replace routine working positions and which do not require a high degree of involvement, as a number of cash, or simple operational tasks.

The use of technology has given us ample opportunity to achieve our business expectations, such as meeting the needs of our customers with efficiency and providing access to bank services 24/7”, says Mrs. Adela Leka, General Director of ProCredit Bank Albania. She adds that ProCredit, thanks to technology use, has automated about 99% of its transactions, which clearly demonstrates the focus for channeling transactions on electronic and online devices.

Other banks are also viewing it as a challenge to deal with technological changes. Our digital transformation will continue through the delivery of more online products and services, making banking available for our clients”, states Christian Canacaris, CEO of Raiffeisen Bank in Albania, the second largest in the country.

For Mr. Maltin Korcutti, director of Credit Bank, technological challenges in banking services are great, as investment is not enough, but there is a regulatory and complicated legal context, as well as increased competition by institutions not banks. But it is a must that the current consumer generation has priority and we, as a bank, aim to propose our solutions”, he adds.

Mr. Silvio Pedrazzi, CEO of Intesa Sanpaolo Bank Albania, claims that in the medium term, the banking system will have to face the Digital Revolution. “We have already entered a new era, especially in terms of retail banking. Each bank should update its business model, given that new generations will have access to banking services, primarily or only through digital channels.

It is predictable the necessity to review the presence of physical networks and the integration of all digital channels, on a single platform, enabling customers to take the whole service, using a single entry point. It should not be overlooked that new technologies allow other players to enter the arena. More and more banks will face extremely high costs to adapt to the new reality”, claims Intesa Sanpaolo CEO.

All this digital revolution is expected to make human capital less popular, while part of it will be replaced by automation. According to the Bank Association, the number of employees in the banking system was around 6,900 persons at the end of 2017 and has remained almost unchanged in the last three years.

Professionals at Risk in Albania

In theory, technological changes have affected the job market as much as the formation. Rezart Priest, professor and scientific researcher, provides an example of whether to apply for a journalist's work site you should know at least some basis of programming. Having basic knowledge of IT.
Although, in theory, technology reportedly shuts down jobs, it adds several times more to the professor and also configures the needs of the job market.

While Arben Shkodra, Secretary General of the Union of Albanian Producers, says the sector that will be affected most, will be industry, but does not exclude even services. He sets an example of call center service.

With technological developments, it will no longer be necessary to be a telephone operator, but a robot will respond by translating all the data it has on the database in the sound. It also envisions reducing jobs in the banking sector.

“The banks will be less frequented and there will be more automatons. Many of the crafts in production industries will be replaced by robotic arm”, Arben Shkodra said.

Technology eases the village, but reduces the need for employees

Agriculture is the main source of food supply for each country, whether developed or not. With population growth, but also urbanization, as more people are living in the city, automation of processes and technology has been necessary. Edward Istrefi, representative of the Istrefi Company, bringing to the Albanian market equipment that automatizes different processes on farms, tells “Monitor” that technology has facilitated the village from previous hard work, increased productivity on farms, but also the quality of agricultural products. Based on science, today a farm, livestock, or agriculture may have higher productivity.

As a case of success in automating farms, Edward Istreff brought the case of poultry, where technology has advanced so much where more than two people are required for a 25 thousand - head farm to manage it all. The whole poultry is automated from the food line, ventilation, water delivery, heating system, and the food line. This entire management system is controlled by a computer, where all data are preset. The management system calculates all technical parameters based on the number of chicken leaders.

Once all the technology of the final word is put into use, the computer repeatedly sends commands. Istrefi adds that the staff, made up of only two people, does not need to be qualified, even not needed, because in this industry, human error has resulted more frequently than those from the computer.

Nearly all poultry operating on the Albanian market have decided to automate their farms. Costs for a fully automated poultry with 25 thousand chicken heads and an area of 1400 m2 are estimated to be 100,000 euros. While for semi-automatic poultry, costs are estimated at 85 thousand euros.

How Technology Affects Farming

According to Edward Istrefi, automation lowers production costs. At an unautomatic farm, 1015 employees are required, processes are manuals, while the human factor is a problem for mistakes in industry. The cattle farms have also become automatic, once handmade, by machine. In time, farms are becoming more modern.

Poor Education System Away With Market Needs

The educational system must adapt to changes in technology and be updated, appropriate, modern and significant in order to obtain the necessary skills the 21st century requires. Rezart Prifti, who provides innovation lessons at the Economic Faculty at the University of Tirana, says that today they teach students about an unpredictable future.

We've often heard there's a lot of economists... that everyone's running out of law school... The stock of knowledge a student receives today is worth 3-6 months. If you don't put them to use, he needs to be re-qualified. Today, it is not just economics but knowledge - based economies, " says Professor Rezart Priest, bringing his experience in education as an example.

What are diplomas worth?

The diplomats from our schools are worth zero. Seeing the market operating abroad, if a profession is closed due to market change, you have the opportunity to requalified. While in Albania it is difficult to qualify, the requalification is not considered. This comes from the system built wrong. The university is an out-of-market system, the students after three years are out of control, and according to the professor, it's not their fault, it's a system that doesn't form.

According to him, diplomats from our schools are zero valid. Seeing the market operating abroad, if a profession is closed due to market change, you have the opportunity to requalified. While in Albania it is difficult to qualify, the requalification is not considered. This, according to him, comes from the system built wrong. The university is an out-of-market system, the students after three years are out of control, and according to the professor, it's not their fault, it's a system that doesn't form. The poor quality of students emerging from university or professional school audiences in Albania is also a major problem for the Secretary General of the Union of Albanian Producers.

We extract very weak students. We start learning the old-fashioned way and we go to college the old-fashioned way. Professional schools and universities are the end of education, do not prepare qualified employees, are diploma launchers. We have a surprise at the university. Universities that should be profiled have begun to do everything other universities do, because they're in competition for students and for revenues”, Shkodra argues.

Technology is threatening Call Center in developing countries

Call Center has created thousands of jobs in the developing world. Technology threatens to eliminate them again...

Rarely do you find any country that has changed so much from one industry, such as the Philippines from a center call, writes The Economist. The first jobs “were transferred to the business process” in the years BAR90s: this term covers tasks from phone responses to bill processing and animated television shows, primarily for firms and governments of the rich world. The industry now employs about 1.2 million people and accounts for about 8% of the Philippines's GDP. The country has already passed India, although India has about 12 times more people.

However, the Philippines is also able to represent the end of the line. New technologies will eliminate many jobs in centrist call jobs and change others. At best, jobs will be created more slowly in the Philippines and India; at worst they will disappear. And it is possible that nowhere else will they be able to get out of poverty as they have. There can never be another Manila.

The spread of a center call has generally been a huge aid to the Philippians, who speak English well. With so many employers available, they may look for work in gyms, cafes, and computer - game rooms, as well as higher salaries. Experienced workers can often find managerial work.

But they're likely to be unhappy, because the currency call industry is on the verge of a profound change. Western companies increasingly encourage consumers to create email contact or online chat. Software robots can often address these requirements. The smartest systems, such as “Celaton”, another British firm, have built for “Virgin Trains”, refer to the most complex questions for people operators and learn from the answers. The longer they run, the better they perform.

Software robots are just getting faster, smarter, and cheaper. Call center workers will still need, not for repeated tasks, but to convince consumers to purchase other products and services. This is a harder job that requires better language skills.

Robot workers, countries with the highest number of them

The age of cars and robots seems to have really begun. Data from the International Federation of Robotics shows that the rate of industrial automation is accelerating in most developed countries, where figures show that for every 10,000 employees worldwide, 66 industrial robots have been installed in 2016. A year later, this report was 74. Europe has the largest number of robots for 10,000 employees, with 99 units, while America and Asia have 84 and 63 respectively.

In 2016, South Korea had 631 robots installed for 10,000 employees. This is largely due to the continued installation of robots in electronics and production sectors. 90% of industrial robots in Singapore are in the electronic industry. The country ranks second in robot density for 10,000 people. Germany and Japan are known for their automated industries and have a density of over 300 robots for 10,000 employees. Japan is one of the leading actors in the robotic industry, and answers for 52% of global supply.

In the United States, the rate of automation is lower, only 189 for 10,000 workers. China is keen to increase the level of automation in the years ahead, to capture the target of being in the first ten countries for high robot density by 2020. The density rate was 25 units in 2013 and rose to 65 units in 2016. India is still behind neighbouring countries in automation of processes and there are only three industrial robots for 10,000 employed in 2016.

Automation can eliminate 73 million jobs by 2030

The rapid evolution of Artificial Intelligence can eliminate up to 73 million jobs by 2030 in America, according to a recent report by McKinsey Institute. Scientific research has concluded that losses can be absorbed through increased productivity, economic growth, as well as other factors. However, maintaining full employment is likely to be challenging, as the economy and the labour market will require mass configuration.

An intermediate automation (uncomplete) could lead to a loss of 39 million jobs, while a rapid automation process could cost 73 million jobs. Despite possible losses, some 20 million displaced people may go to similar jobs, where they will face slightly different tasks. However, much will have to be trained entirely, not only in the United States but also many developed countries. McKinsey reported that a third of America's workforce needs to be retrained, as well as almost half of Japan's workforce.

Fast automation can also cost China and India 236 million and 120 million jobs, respectively, by 2030. In Japan, the worst scenario envisions a loss of 30 million jobs. Mexico will have about 18 million displaced workers by then, while Germany anticipates about 17 million. More threatened by automation are workers in the fast food sector or machine and equipment operators. The safest jobs are managers, engineers, scientists, teachers and plumbers. /Monitor