Retail News CRM

Tag: productivity

  • AI Could Offset Asia’s 25% Workforce Loss by 2050, IMF Says

    AI Could Offset Asia’s 25% Workforce Loss by 2050, IMF Says

    Artificial intelligence could help offset Asia’s shrinking workforce as populations age if adoption is scaled evenly across the region, the International Monetary Fund said on Monday.

    IMF Managing Director Kristalina Georgieva said at a book launch during meetings at the Queen Sirikit National Convention Center that AI is projected to lift growth in advanced Asia by 0.5 to 1 percentage point, more than offsetting demographic pressure if productivity is captured.

    The demographic drop in North Asia

    Countries including China, Japan and South Korea could lose nearly 25 percent of their working population between now and 2050, according to findings in the IMF book, though productivity gains from AI could offset that loss.

    IMF Managing Director Kristalina Georgieva presented the findings during the IMF and World Bank annual meetings at the Queen Sirikit National Convention Center. She identified demographics, regional trade integration and artificial intelligence as the three central shifts deciding Asia’s economic trajectory.

    AI is projected to lift up growth in advanced Asia, where the ageing populations are, somewhere between half a percentage and one percentage point… And what is amazing is that if the countries capture productivity and this growth, they will more than offset the demographic pressure

    Divergence between rich and emerging markets

    The gap between mature industrial economies and developing Southeast Asian nations creates an uneven playing field for artificial intelligence rollout. Wealthier hubs possess the computing infrastructure and capital required to automate white-collar tasks and industrial workflows quickly.

    Developing markets face different exposure levels. Krishna Srinivasan, director of the IMF Asia and Pacific department, warned that emerging economies have fewer automated jobs today but also lack the capital to capture software-driven productivity gains without targeted policy support.

    Supply chains and operational exposure

    For consumer goods manufacturers, retailers and logistics operators across Asia, the findings point to immediate operational choices. Supply chain networks that depend on cheap labour in aging hubs must substitute headcount with automated fulfilment, inventory forecasting and automated sorting.

    Retailers in Japan and South Korea already operate with automated store checkouts and robotic warehouse pickers to handle persistent staffing shortages. Expanding those systems into Chinese manufacturing corridors will determine whether factory gate prices stay stable as industrial payrolls shrink.

    Trade barriers and reform timelines

    Technology alone will not solve structural regional slowdowns without cross-border commerce reforms. Lowering non-tariff barriers and deepening trade pacts across Asia would expand regional gross domestic product by approximately 1.8 percent over the long term.

    Srinivasan noted that national workforce training programmes and regulatory reforms can accelerate enterprise adoption of artificial intelligence tools by a decade or more. Asian policymakers now face the task of drafting common digital standards and labour retraining budgets before the projected 2050 workforce contraction reaches its steepest curve.

  • The Ramadan Productivity Drop And How To Overcome It

    The Ramadan Productivity Drop And How To Overcome It

    The holy fasting month of Ramadan is a special time in Indonesia, with nightly celebrations and long days of devout reflection for Muslims and discrete respect from non-Muslim expats and locals. Although for bosses and managers, the month can be a time of frustration with productivity seemingly grinding to a halt.

    “The productivity of workers declines in the holy month by 35 to 50 percent as a result of shorter working hours and the change in behaviour during this month,” Samer Sunnuqrot, an economist based in the Jordanian capital Amman told.

    Unlike Muslims practicing in Muslim-minority countries, like the United Kingdom or Australia, the specific needs of fasting can be taken into account by business and government in Muslim-majority countries like Indonesia or Jordan.

    “Decisions and meetings will be postponed until the period of Ramadan is over, especially in governmental institutions. This causes lower productivity and performance and might incur losses for business people because of the postponing of decisions and processing of government transactions,” Sunnuqrot said.

    While productivity dips during the fasting month, Sunnuqrot notes consumption tends to rise.

    “The positive side of Ramadan for business people is a higher demand for goods and services and higher consumption.

    “That often means higher prices, which translates into higher profit margins for merchants, retail stores, restaurants and cafes – especially those which arrange amusement programmes for after iftar (the breaking of the fast),” he said.

    Rumy Hasan, a lecturer at the University of Sussex, investigated the economic impact of lost productivity during Ramadan. His research found Ramadan creates a loss of 42 working hours per fasting participant each year, representing an overall 2.5 percent reduction in output annually.

    “Productivity declines not only from the physical strain of fasting but from the disruption to the flow and organization of work. It is reasonable to assume that a decline in productivity would further reduce economic output by at least 3 percent each year, which represents a significant annual recessionary impact of Ramadan,” he said.

    This decline is due largely to the physical effects of fasting.

    “Occupational health researchers have highlighted various adverse health consequences from severe dehydration, including headaches, dizziness and nausea,” Hasan found.

    For Muslim-minority countries this loss can be absorbed by the non-fasting majority of the labour force, but in Indonesia, where almost 88 percent of the population identifies as Muslim, this represents a massive issue.

    But all hope is not lost for managers and bosses hoping to boost productivity in the office until the Idul Fitri long weekend. While fasting, early mornings and late nights leave workers lethargic and struggling to focus so making the workplace flexible can help overcome some productivity issues.

    Beginning work earlier for an earlier finish will ensure workers maximize their energy from the pre-dawn morning meal, or suhoor, while also helping employees make it home in time to break the fast, or iftar, while dodging crippling traffic.

    Business consultant Mohammed Faris suggest non-Muslim managers and bosses take part in their own three-day fasting challenge in an effort to demonstrate both solidarity and to better understand the experiences of fasting colleagues.

    “If you want to engage with your staff on the challenges of fasting in Ramadan and work productivity, the best way is to actually talk about it and empathize with them. Start a conversation by asking your fasting employees how they consider work would be affected in Ramadan and what could be done about it,” he told.

    United Kingdom news portal Metro recommends tailoring traditional productivity tips for the month, such as goal setting and creating daily lists of tasks. This ensures Ramadan is treated as the special time that it is, while also maintaining good work habits.

    Additionally, while it may be tempting to gorge on the traditional treats and meals of the season, keeping healthy during the working week at least will go a long way to maintaining functionality. Lots of fresh fruit and proteins during the morning meals will help keep any participant in great health for a long, productive day ahead. Likewise, avoiding overly sugary and fried snacks in the evening and staying hydrated will keep the body healthy.

    Lees ook: