What's The Impact of Automation On Industry Employment?

What's The Impact of Automation On Industry Employment?

A Brief Outlook Into Automation

Automation has been here for a long period of time. With the invention of the wheel over 5000 years ago, it was the first recorded use of automation. It is in use since for the transportation of people and other elements. And the invention of the wheel completely transformed the automation. All the automation that exists today is the aftermath of the invention of the wheel. The impact of automation on employment is enormous, and both good and bad aspects fall into it.

It we talk about today's world, one the modern revolution in automation came in 19 century when humans moved from hand base to machine base production creating jobs. As the nature of the jobs changed, so did the demand for some jobs increased, and the demand for some jobs decreased. The impact of automation on employment is mostly positive.

Positive Impact Of Automation On Employment

The positive impact of automation on employment is sometimes uncountable. There is a miss conception prevails among the society that automation will be resulting in the loss of jobs, although the reality is totally different. As it will result in a greater demand for jobs, and it will create more jobs in a place of the previous ones. Automation is supposed to produce more output with the same level of input. It will generate a higher GDP, and higher GDP will result in the higher use of goods and services, which in turn will increase the demand for labor and the jobs.

An essay published in states,

“The rise of agile software development methodologies has also shone the spotlight onto automation testing and other ‘DevOps’ practices. As the market continues to open up, there will be more available jobs for entrepreneurs as well, and if successful, their innovations will improve the standard of living and create more jobs. A classic case in point of combining high productivity with plenty of innovation in Germany, who of all the OECD countries in 2014, had the fewest average working hours per person per week, at just 27 hours, yet its economy is one of the strongest.”

It further states,

“Automation as a whole is also having a compounding effect on regional inequality too. In the UK for example, London and the South East have seen substantial increases in the levels of employment during the last 15 years specifically, precisely because they predominantly occupy those high-earners, engaging in high-skilled, non-routine jobs at low risk of automation. One study shows the combined increase in jobs in both areas amounts to more than 1.7 million extra workers in the last fifteen years alone. All other regions show an increase too, but none near the heights of both London and the southeast”.

Another positive impact that automation will create on employment is that it will increase the wages of the workers, and as the nature of the work changes, wages are supposed to increase. The average pay person is increased by over 50% in a matter of a few decades, and this will continue to happen in the future; and we are already witnessing to see some of the increase in wages in many industries.

One of the other positive impacts that automation is supposed to do is that the nature of the work that is done by humans will be transformed or change the reports of suggested that 15% of the global workforce could be displaced by 2030 but the new jobs likely to take the place of the old jobs.

The jobs will be a compromise of new technologies and will require a higher level of skill sets. Skill sets are also supposed to increase as the industrial revolution came. People had to work with Machines now. People should be skilled in machine learning, natural language processing, and interaction with the robots automated systems.

Negative Impact Of Automation

The negative impact of automation could be depicted by the following words by an article published in Aspen institute.

“However, automation can also have negative effects on individuals and communities. Those who lose their jobs suffer economic, social, and psychological hardship. Communities that relied on single industries that have been automated have struggled to recover. New jobs are being created, but their geographic distribution and skill requirements often make them inaccessible to the individuals and the communities where those whose jobs were lost. This dislocation has played a role in exacerbating America’s economic, political, geographic, and social divides.”

25th May 2020 Faiza Syed

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