Economic activity and employment

The economic activity and employment impact area addresses implications of the CCAM on economic development and labour dynamics by examining its influence on overall economic vitality, on the evolution of businesses and the job market, and on skill requirements of the workforce.

This area studies how CCAM could affect the economy in terms of employment, investment returns and total factor productivity. Changes in these factors have broader economic implications, which are addressed in the socio-economic impact evaluation.

CCAM can impact economic activity across multiple industries, including:

• Automotive: Increased demand for CCAM vehicles sales.
• Software: Growth in development and integration of self-driving software.
• Data services: Expansion of data-driven revenue streams from CCAM systems.
• Telecommunications: Higher revenues due to increased connectivity requirements and data exchanges.

CCAM may also indirectly affect economic activity through the (re)allocation of productive resources of labour, capital and freed-up time. For example, fewer accidents would reduce the need for healthcare and vehicle repairs. These freed-up resources could then be reinvested into the economy or society.

Job markets could be impacted in several ways. Automation of vehicles might reduce or eliminate the need for drivers in certain roles or for specific segments of trips. However, CCAM can improve drivers’ working conditions by relieving them of monotonous tasks, reducing stress and enhancing safety. Further, as some roles disappear, the remaining jobs and skill requirements are expected to undergo restructuring. Workers may need to develop new skill sets, such as overseeing automated systems, managing fleet operations or handling vehicle monitoring and maintenance.

The next figure shows the main components of the economic activity and employment impact area.

Main components of the economic activity and employment impact area.