IIF: Automation risk in CEE ‘relatively low’

The risk of automation in Central and Eastern Europe “is relatively low compared to other European Union member states, but differs considerably within the region, with EU members facing less risk”, analysts at the International Institute of Finance (IIF) have concluded.

The IIF’s analysts found that automation risk gradually fell in almost all Central and Eastern European countries between 2010 and 2018 (except Bulgaria and North Macedonia), but more so in EU member states.

Within the region, Albania, Bosnia and Herzegovina, Romania, Serbia, Slovakia, North Macedonia, Moldova and Hungary are facing a relatively high risk while the Baltic states, Slovenia and Montenegro are facing the lowest level of automation risk.

“The skill composition of employment appears to be a significant factor in determining an economy’s exposure to automation risk, with high-skill jobs providing some protection,” the IIF’s analysts noted, adding that “a closer look at the regional level shows that more diversified labour markets in urban areas are less at risk than low-density rural areas.”

The urban-rural divide in Central and Eastern Europe resembles the pattern of Western Europe, but the correlation is even stronger when it comes to the risk of automation, the report found.