Industry 4.0 and its Implication on the Job Market: A Conceptual Review

Abstract

We are now entering the fourth wave of technological advancement known as Industry 4.0, which heralds the rise of new digital industrial technology, as modern technology evolves faster than ever before. Adopting technological advancements will undoubtedly result in significant productivity gains as processes become faster and more efficient, resulting in higher-quality products at lower costs This study aims to explore the challenges of Industry 4.0 as a disruptive innovation towards the job market. This exploration will include perspectives from industrial experts as well as academicians. Therefore, this study will utilize qualitative methods from secondary data to conduct a conceptual review from both conventional and Islamic perspectives. Based on the findings, it is clear that since the fourth industrial revolution involves digitization of industrial processes, there are some jobs which will be made obsolete, whilst on the other hand, new jobs are also created as a result of Industry 4.0 fundamentally requiring new skills. The study also identifies initiatives that have been done towards Industry 4.0 with focus on the job market and outlines potential areas for future research.