German Companies Turn to Robots to Fill Jobs for Retiring Workers
2023-11-01
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1German businesses are increasingly turning to robots to fill jobs as the country faces a severe labor shortage.
2The situation left about 1.7 million jobs unfilled across Germany in June, official data showed.
3The country's Chambers of Commerce and Industry has estimated that half of German businesses are currently struggling to fill positions.
4Germany is Europe's largest economy.
5One of the country's biggest labor issues is the large number of people retiring from the so-called Baby Boomer generation.
6People in this group are between the ages of 57 and 75.
7The nation's birth rate has also been going down for years.
8Economic experts say it is difficult to replace these retiring workers.
9Many younger workers do not want to take jobs seen as dirty and dangerous.
10The job shortage situation is currently reducing growth in Germany by about $109 billion a year, official estimates suggest.
11The Federal Employment Agency predicts the amount of available workers will shrink by 7 million people by 2035.
12The problem is affecting large, medium and small businesses across the country.
13Some have decided to replace retiring workers with robotic systems.
14With similar issues affecting other developed economies, robotic and artificial intelligence (AI) technologies will continue to expand, said Nela Richardson. She is the chief economist at financial provider ADP.
15"Long term, all those innovations are a game-changer for the world of work. Everybody will do their job differently," Richardson told Reuters.
16Heavy investment in automation by carmakers and other major industrial companies has made Germany the world's fourth-largest market for robots - the largest in Europe.
17But as robots become less costly and easier to operate, even smaller companies are also using them.
18The International Federation of Robotics has estimated that about 26,000 robotic machines were put in place in Germany last year.
19"Robots enable the survival of companies that see their future at risk due to staff shortages," said Ralf Winkelmann, director of FANUC Germany.
20The company sells about half its Japanese-made robots to small and medium-sized businesses.
21Family-run ROLEC is a German company that produces systems to protect industrial electronics and control equipment.
22It bought its first robot last year to permit production to continue at night.
23ROLEC has already bought a second machine and plans to continue investing in automation.
24"It is great when you turn on the light in the morning and the parts are in the storage container and have been processed," ROLEC's CEO Matthias Rose told Reuters.
25Industry experts say increasing robotic operations are also a sign that robots have become easier to use, with no special skills required.
26Most now come with a Human Machine Interface, which operates similarly to a smartphone, said Florian Andre.
27He is a co-founder of SHERPA Robotics, a start-up that targets companies with between 20 and 100 employees.
28Even workers and trade unions - which in the past were fearful of job losses linked to robots - have taken an increasingly favorable position.
29A public opinion study published in June by a robots marketplace organization found that nearly half of German employees see robots as a help to the labor shortage.
30I'm Gena Bennett.
1German businesses are increasingly turning to robots to fill jobs as the country faces a severe labor shortage. 2The situation left about 1.7 million jobs unfilled across Germany in June, official data showed. The country's Chambers of Commerce and Industry has estimated that half of German businesses are currently struggling to fill positions. Germany is Europe's largest economy. 3One of the country's biggest labor issues is the large number of people retiring from the so-called Baby Boomer generation. People in this group are between the ages of 57 and 75. The nation's birth rate has also been going down for years. 4Economic experts say it is difficult to replace these retiring workers. Many younger workers do not want to take jobs seen as dirty and dangerous. 5The job shortage situation is currently reducing growth in Germany by about $109 billion a year, official estimates suggest. The Federal Employment Agency predicts the amount of available workers will shrink by 7 million people by 2035. 6The problem is affecting large, medium and small businesses across the country. Some have decided to replace retiring workers with robotic systems. 7With similar issues affecting other developed economies, robotic and artificial intelligence (AI) technologies will continue to expand, said Nela Richardson. She is the chief economist at financial provider ADP. 8"Long term, all those innovations are a game-changer for the world of work. Everybody will do their job differently," Richardson told Reuters. 9Heavy investment in automation by carmakers and other major industrial companies has made Germany the world's fourth-largest market for robots - the largest in Europe. 10But as robots become less costly and easier to operate, even smaller companies are also using them. The International Federation of Robotics has estimated that about 26,000 robotic machines were put in place in Germany last year. 11"Robots enable the survival of companies that see their future at risk due to staff shortages," said Ralf Winkelmann, director of FANUC Germany. The company sells about half its Japanese-made robots to small and medium-sized businesses. 12Family-run ROLEC is a German company that produces systems to protect industrial electronics and control equipment. It bought its first robot last year to permit production to continue at night. ROLEC has already bought a second machine and plans to continue investing in automation. 13"It is great when you turn on the light in the morning and the parts are in the storage container and have been processed," ROLEC's CEO Matthias Rose told Reuters. 14Industry experts say increasing robotic operations are also a sign that robots have become easier to use, with no special skills required. Most now come with a Human Machine Interface, which operates similarly to a smartphone, said Florian Andre. He is a co-founder of SHERPA Robotics, a start-up that targets companies with between 20 and 100 employees. 15Even workers and trade unions - which in the past were fearful of job losses linked to robots - have taken an increasingly favorable position. A public opinion study published in June by a robots marketplace organization found that nearly half of German employees see robots as a help to the labor shortage. 16I'm Gena Bennett. 17Reuters reported this story. Bryan Lynn adapted the report for VOA Learning English. 18_____________________________________________ 19Words in This Story 20innovation - adj. the act or process of introducing new ideas, devices, or methods 21automate - n. to control something using machines and not people 22staff - n. the people who work for an organization 23union - n. an organization of workers formed to protect the rights and interests of its members