Rise in electric vehicles: A costly venture in shape of loss in millions of jobs?

The world is talking about climate change. Back in 2015, an agreement to contain the world-heat-level was signed as it was finalised by United Nations Framework Convention on Climate Change. United Nations has asserted from time to time that climate change is real, and therefore, this agreement, Paris Climate Accord, was termed as a huge breakthrough. Under this agreement every country has to make a plan and report it back its contributions to contain the growing global warming.

The Paris Agreement’s long-term goal is to keep the increase in global average temperature to well below 2 °C above pre-industrial levels; and to limit the increase to 1.5 °C.

Electric cars promoted as a result of the reports on Climate Change

Therefore, various countries decided to promote the usage of electric cars. However, the production of electric cars is another thing, its impact on the job creation is also a by-product. The chassis of an electric car is far simpler as compared to the one of a car having an engine. Also, it’s a matter of common sense, the engine of a car has more components as compared to a simple motor which powers the wheels of the car. Therefore, less man power is required in manufacturing an electric vehicle. This means, the concerned countries would have to lay off millions of workers.

Adam Jonas, a top analyst, has reported that auto-industry employs 11 million people all around the globe. According to his estimates, a shift of major car companies towards electric vehicles would cost 3 million jobs in the next three to five years. Further, competition would take a pace as Elon Musk’s production units of electric cars are asking the other companies to stay relevant in the modern world by focusing more on the production of the electric vehicles.

The move is necessary as the world needs to contain the global temperatures 2 degrees above the temperatures that were present at the pre-industrial times. It’s a hard thing to maintain but someone has to take a step. VW Group CEO had stated that less labour is required to manufacture an electric car.

What’s in it for the governments?

As the loss in jobs is not desirable by most governments in the world; therefore, a strategy should be devised by the governments all around the globe to mitigate their labour into some other task or trade before the movement of electric car renders them jobless.

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