Staff of the Department of Finance shared their scientific achievements at the International Scientific Conference “The Impact of Industry 4.0 on Job Creation”

December 2, 2019
    Established in the middle of the last century, the three-sector model in economics divides economies into three sectors of activity: extraction of raw materials (primary), manufacturing (secondary), and services (tertiary). According to the model, the main focus of an economy's activity shifts from the primary, through the secondary and finally to the tertiary sector.

    Today the tertiary sector has grown to such an enormous size that it is sometimes further divided into an information-based quaternary sector (information technology, research, trade, insurance, real estate operations, financial services), and even a quinary sector based on human services (health care, education, recreation, public administration). But a simple change in the proportions of GDP production and employment in favor of the service sector accompanied by a decline in the agrarian and industrial sectors and not followed by productivity growth and qualitative changes in employment, as observed in Ukraine, is a sign of the negative process of deindustrialization.

   In November 2019, the International Scientific Conference “The Impact of Industry 4.0 on Job Creation” was held at Alexander Dubcek University of Trencin (Slovakia) at the Faculty of Social and Economic Relations. The conference gathered scientists and practitioners from Poland, Czech Republic, Germany, Russia, Hungary, Lithuania, Latvia, Slovakia and Ukraine.

    The National University of Life and Environmental Sciences of Ukraine was represented by Professor N.M. Davydenko, Associate Professor A.V. Buryak and Associate Professor Z.M. Titenko.

   Opening the conference, Rector of the University, Jozef HABÁNIK said that the EU industrial policy recognized industry as a cornerstone of economic prosperity, as it provided employment in related fields, especially in transport and trade. ‘The United Nations Industrial Development Organization (UNIDO) emphasizes that countries with modern industries are less vulnerable to global shocks and more able to withstand trials. They will provide significant opportunities for industrial growth and technological advancement over the coming decades. The driver of economic growth and the generator of technological progress and innovation in the economy is the manufacturing industry, which produces more than 16% of global GDP.’ In conclusion, he added that according to the European Commission, every job in the manufacturing industry meant creating two more jobs in other sectors.

    Dean of the Faculty of Social and Economic Relations, Eva IVANOVÁ, also noted in her speech that new technologies were widely referred to as Industry 4.0. ‘The rapid growth of digitization, robotics and intellectual automation has a major impact on markets, including the labor market. Technological change is destroying some jobs, while creating new jobs and professions. Replacing humans with robots, smart vehicles, digitized and related processes will have a major impact on the labor market, leading to widespread unemployment.’

   The first scientific report was presented by the chairman of the Union of Employers of Slovakia, Martin HOŠTÁK. He introduced the structure of employment in Slovakia. As it turned out, 43% of the working-age population live and work in rural areas. The Slovak Government, especially the Ministry of Agriculture, supports the development of the country's agriculture. At the same time, the unemployment rate in Slovakia is 13.7% and is the fifth largest in the OECD.

    Currently, such industries as automotive engineering, electronics, mechanical engineering, chemical industry, pharmaceuticals, information technology are developing rapidly, but are characterized by a shortage of jobs.

    The following report was presented by the Head of the human resources department of VETROPACK company, Nemšová Eva VANKOVÁ. She shared her experience of fully automating production processes at her enterprise. However, the consequences were unexpected: before the modernization of production, the company employed 1200 people, and after full automation of operations, the number of staff increased by 200 people. She underlined that artificial intelligence was not to be feared, robots would never be able to replace a person. Nonetheless, people should have the desire to learn constantly and be open to change.

     Head of the Department of Finance, Nadiya Davydenko, presented the report on “THE IMPACT OF THE INDUSTRIAL REVOLUTION ON THE POPULATION EMPLOYMENT STRUCTURE IN THE AGRARIAN ECONOMY SECTOR”.

    She noted that the industrial revolution was changing the nature of agricultural production, namely: high-efficiency tillage technologies were less expensive and did not require a large number of workers. Therefore, the rural population was losing the economic basis of its existence. At the same time, the industrial revolution boosts rapid reforms designed to provide new opportunities for the agricultural sector as well.

    Nadiya Davydenko noted that in order to improve the investment security of the village, it was advisable to undertake measures aimed at creating favorable conditions for investment. At the same time, the main strategic resource of the state should be human and social capital and rural territories. The speaker focused on the country's reforms of decentralization of power. In conclusion, Nadiya Davydenko added that creating favorable conditions for innovation and investment in the countryside would help to increase the number of jobs and enable the development of the agrarian sector of the Ukrainian economy.

    The articles by the conference participants will be published in the scientific magazine, included in Scopus international scientific database.

Alina Buryak,
Associate Professor of the Department of Finance
 

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