Automation and the future of work in Mexico: Challenges and opportunities for logistics

Automation is redefining the way things are produced, transported and distributed around the world. From robotized warehouses to artificial intelligence in route planning, logistics is at the heart of this technological revolution.

However, this transformation raises fundamental questions about the future of employment, especially in regions such as Mexico, where the labor structure faces particular challenges.

A recent report by the Economic Commission for Latin America and the Caribbean (ECLAC) addresses the impact of automation in Mexico, highlighting the differences between generations, sectors and levels of automation risk.

The study reveals that a large part of jobs in the country are at risk of being automated, especially those related to routine and lower-skilled tasks, such as many of those found in the logistics chain and the transport of goods.

This transformation not only has economic implications, but also social ones, by exacerbating inequalities in an already fragmented labor market, it also opens a window of opportunity for key industries, such as logistics, to lead the change towards a more sustainable, efficient and inclusive future.

The impact of automation: Where are we today?
The ECLAC report highlights that, between 2005 and 2020, the Mexican labor market showed remarkable stability in the proportion of jobs classified by risk of automation, around 41.4% of jobs are in high-risk occupations, while 11.7% are in low-risk categories.

In addition, 35.6% of jobs are in the household sector, where the probability of automation is practically zero due to the characteristics of low capitalization and marginal production.

Main occupations and their risk
High-risk occupations include those related to routine tasks, such as machine operators, cleaning workers, telephone sales employees and delivery people. These functions, essential in sectors such as manufacturing and logistics, are highly susceptible to being replaced by machines due to their repetitive and predictable nature.

On the other hand, low-risk occupations include supervisors, maintenance technicians, engineers, and other roles that require complex cognitive skills and creativity. These tasks, which are more difficult to automate, are concentrated in sectors with high specialization and training.

Changes in labor dynamics
A crucial aspect of the study is that, although the proportion of jobs in each risk category remained stable, there were significant changes in the occupations within each category.

For example, between 2005 and 2020, agricultural workers and catalog sellers consolidated their presence in high-risk jobs.

However, this growth came at the expense of greater diversification of occupations, with an increase in the number of roles classified within this category.

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They are revolutionizing the transportation, storage, and distribution of goods.

However, these innovations are also eliminating routine tasks, while increasing the demand for technical and analytical skills.

For example, machine operators in automated distribution centers face a high risk of being replaced by robotic systems, while technicians in maintenance of these systems are less vulnerable and have more stable job prospects.

Between 2015 and 2020, the number of workers in high-risk occupations increased by 2.7 million, evidencing a growing trend toward automation in key sectors of the Mexican economy.

This dynamic is particularly relevant to logistics, where investments in technology, such as robots for package sorting or route optimization systems, are transforming daily operations.

Specific challenges for logistics in Mexico
The Mexican labor market faces structural characteristics that hinder the transition to an economy based on more sophisticated skills:

Job insecurity: A large proportion of workers in Mexico lack benefits and job stability. This limits their ability to adapt to new technological demands and participate in training programs.
Market segmentation: Inequalities between sectors with high technology and those with low productivity exacerbate wage and working conditions gaps.
Lack of investment in innovation: Mexico faces economic and political barriers that hinder the mass adoption of advanced technologies, especially in small and medium-sized enterprises (SMEs).
Generational impact: Young people and automation
The study highlights significant differences between generations, with younger workers (15 to 39 years old) being more likely to be employed in occupations with a high risk of automation, especially in sectors such as commerce and manufacturing.

This contrasts with previous generations, who entered the labor market in a less digitalized context and with greater economic stability.

Differences by educational level

A relevant finding is that, although today’s youth have higher levels of formal education, this does not necessarily translate into better quality jobs. Automation has reduced the economic returns to university education in certain sectors, which reinforces job insecurity, even for those with advanced studies.

Women and automation

Women are overrepresented in high-risk occupations, which puts them in a particularly vulnerable position in the face of automation. This reflects gender inequalities in access to technical and highly qualified jobs, which are less susceptible to being automated.

Final reflection: Threat or opportunity?

Automation represents a profound change in the structure of the Mexican labor market, with direct implications for the logistics industry. While the risks are evident, there is also enormous potential to transform the sector into a more efficient, sustainable and innovative one.

The key to taking advantage of these opportunities lies in preparation: investing in people, encouraging technological adoption and designing policies that balance innovation with inclusion. Thus, the logistics industry can lead the transition towards the future of work in Mexico and Latin America.

Source: thelogisticworld