The world’s economy is about to undergo a major shift: the arrival of driverless cars and other self-driving technology, said Brian Doherty, senior economist at Bank of America Merrill Lynch.
The new wave of technological advances and a rising demand for transportation will lead to a wave of jobs lost as people lose the ability to drive, Doherty said in an interview.
That means there will be a “significant drop” in overall employment as drivers and passengers will no longer be the main drivers of our transportation system, Dopps said.
He expects that “driving and walking will become the primary mode of transportation for people in 2040, 2050 and 2060.”
The decline of drivers will also mean that we will be able to have fewer people driving, Doppy said.
That will lead not only to less traffic congestion but also fewer traffic fatalities.
There are now more than 1.3 million jobs in the U.S. that rely on driverless vehicles, according to a study by the University of California, Davis.
Many of those jobs are in the service sector, which will be the biggest driver of the loss of drivers.
The job market for drivers in 2025 will be about 40 percent lower than it is today, according the report.
Doherty said the future of jobs is in autonomous vehicles.
“We’re going to see the number of jobs in autonomous systems rise from about 10 percent of jobs to almost 25 percent in 2025,” he said.
The job market will shift from service to transportation, Doppys predictions predicted.
That means that transportation will become more lucrative than other industries.
It will allow people to have more of an impact on the environment, he said, and it will be more profitable to do that in a more efficient way than it was before.
While the driverless technology is likely to make driving more accessible, there will also be job losses in areas such as maintenance and repair, he added.
Those jobs will be lost in transportation, while people will lose their jobs in those other industries that rely more on the use of transportation, such as sales and marketing, manufacturing and retail, according a research note by the research firm CB Insights.
There will be other job losses, Doomsays.
He predicted that the U,S.
economy will lose 10 percent to 20 percent of its manufacturing jobs by 2025.
That will be enough to wipe out a $1 trillion economic impact in 2026, according CB Inspects.
There will be roughly 20 percent more jobs lost in construction and transportation, the report added.
The shift in transportation will create a “tidal wave of job losses,” Dopps predicted.
Those losses will occur in every sector of the economy, from construction to retail, he noted.
The future of transportation will be much different than it has been in the past.
“The old transportation systems have been good, but they’ve been a little bit outdated,” Doppies said.
“This will be different.
The technology is going to be a lot smarter and faster.”
Doherty expects that the technology will be “really transformative.”
But he noted that the jobs will remain.
He added that there are no clear plans to create jobs for people who are laid off from the old transportation system.