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BBI of Chicago
September 2021

The impacts of industry 4.0 and the future of the job market

By: Aldomir Agustinho Tresolsi.

We entered the era of industry 4.0. Technological advances are unavoidable and shouldn’t be seen as something negative. It is necessary to understand the positive and negative impacts of this revolution on the lives of people and companies.

The researcher and professor from the Dom Cabral Foundation, Hugo Ferreira Braga Tadeu, states in his paper, “Impactos da indústria 4.0: pesquisa sobre digitalização” (Impacts of industry 4.0, research about digitalization), from 2016, that with “the industry 4.0, businesses will undergo profound changes, reformulating current standards of products offering and services, to supply a bigger and more demanding consumer audience, connected with the digital world”.

The author states that this industrial revolution named industry 4.0, with the automation of productive processes, will massively replace companies’ labor, impacting the political, social, and economic areas. There will be impacts in the most adverse macro economies, such as GDP, consumption, employment, trade patterns, inflation, and investment. These changes will be motivated by ruptures on the side of the offer, with changes in production and distribution of goods and services, and on the side of the demand, thanks to the new standards of consumption and needs of the consumers.

He concludes by noting that the State, the government, and society have primordial roles to adequate a labor capacitation model that will be operative. The government must create incentive policies, more jobs, invest in education and innovation, and think of a control mechanism for when big companies merge.

Therefore, we can be sure that industry 4.0 will create opportunities for those who can quickly adapt to change, and it will increase the monopoly by big corporations and conglomerates. By this control, the tendency is rise unemployment rates, resulting an unbalanced labor force, once technology brings who have access to it and alienates who don’t, fostering an increase in social inequality due to income distribution.

In the field of work, manual labor will be replaced by automation, leading to the development of new skills. The industry 4.0 professional will have to be agile, able to learn and change fast, adapting by self in an intelligent way and proposing innovative solutions. Those will become the professionals to an essential part of the process, demonstrating that their skills are different and necessary from machines. We cannot predict the future, but we can prepare ourselves to refine our skills.


TADEU, Hugo Ferreira Braga. “Impactos da Indústria 4.0 “. 2016. Available in: < >. Accessed on: 03-27-2021.


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