The Dynamics of Labor Productivity in Countries and the Essence of the Fourth Industrial Revolution

Abstract

The third and fourth industrial revolutions are developing on the basis of information technology. The main technologies within the fourth industrial revolution, which began at the turn of the 21st century, are cyberphysical systems, the Internet of things and cloud computing. Any industrial revolution implies a rapid increase in labor productivity. However, in most countries, the average annual growth rate of gross value added per person employed in industry, including energy, has been steadily declining over the past 30 years, and in a number of countries in the 2010s, they were negative. Those states that in the 2000s, accelerated the growth rate of gross value added per employed person compared to the 1990s, in the 2010s they reduced them to a level less than in the 1990s. The average annual GDP growth rate at PPP per hour worked also showed a slowdown in the 21st century. The fourth industrial revolution has as its main consequence increased digital control over citizens and enterprises. In industry and agriculture, a decrease in production volumes and a reduction in employment is predicted. The discourse of the fourth industrial revolution seems to have as its goal the formation of a positive perception of digitalization technologies and total control by humanity.