One of our recent commentaries looked at the increased trend towards automation through robotics. The recovery in the labour market from the pandemic is likely to be slower in the short run, as the adoption of dextrous robotics stepped up a gear last year.
In the longer-run, there is no evidence that automation will destroy jobs, overall. Increased use of technology prior to the pandemic had not reduced the pace of job creation. In the US and the UK, employment had soared to record levels by early 2020.
This commentary looks at other areas where technology may be helping companies to cut costs while simultaneously creating new jobs – artificial intelligence and digitalisation. It also incorporates an update on the surge in spending on semi-conductors, much of which is linked to the growth in these new technologies. The conclusion: the pace of innovation is accelerating, and job creation will be the winner. However, that does not necessarily justify some of the eye-watering valuations being awarded to start-ups, particularly in health care and fintech.
Summary
• AI, Digitalisation, Biotech lead the way
• Fintech attracting investor interest too
• Challenge for investors: recognising true value, and froth
