Automation the economy from creating enough new jobs. Throughout


Topic: Individuals fear of automation affecting their jobs

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

Purpose of the research:

Automation can be defined as the technology by which a process or
procedure is performed without human assistance.

In other words, Automationor automatic
control, is the use of various control systems for operating equipment such as machinery, processes in
factories, boilers and heat treating ovens, switching on telephone networks,
steering and stabilization of ships, aircraft and other applications and
vehicles with minimal or reduced human intervention, with some processes have
been completely automated.

Automation has been achieved by various means
including mechanical, hydraulic, pneumatic, electrical, electronic devices and computers, usually in combination. Complicated systems, such as modern
factories, airplanes and ships typically use all these combined techniques. The benefit
of automation include labor savings, savings in electricity costs, savings in material costs, and improvements to quality,
accuracy and precision.

Activities most susceptible to
automation involve physical activities in highly structured and predictable
environments, as well as the collection and processing of data. In the United
States, these activities make up 51 percent of activities in the economy
accounting for almost $2.7 trillion in wages. They are most prevalent in
manufacturing, accommodation and food service, and retail trade, and include
some middle-skill jobs.


One survey shows that 40 per cent of young people around the
world are concerned about their jobs being automated in the next decade.

There have been periodic warnings in
the last two centuries that automation and new technology were going to wipe
out large numbers of middle class jobs. The best-known early example is the
Luddite movement of the early 19th century, in which a group of English
textile artisans protested the automation of textile production by seeking to
destroy some of the machines. A lesser-known but more recent example is the
concern over “The Automation Jobless,” as they were called in the title of a
TIME magazine story of February 24, 1961: The number of jobs lost to more
efficient machines is only part of the problem. What worries many job experts
more is that automation may prevent the economy from creating enough new jobs. Throughout
industry, the trend has been to bigger production with a smaller work force.

Many of the losses in factory jobs have
been countered by an increase in the service industries or in office jobs. But
automation is beginning to move in and eliminate office jobs too.  In the past, new industries hired far more
people than those they put out of business. But this is not true of many of
today’s new industries. Today’s new industries have comparatively few jobs for
the unskilled or semiskilled, just the class of workers whose jobs are being
eliminated by automation.





How Automation and
Employment Interact


In 1988 average number of staff at a
bank was 20 and ATMs reduced this number to 13 per branch of a bank in the US,
in 1900, 41 percent of the US workforce was employed in agriculture; by 2000,
that share had fallen to 2 percent (Autor 2014), mostly due to a wide range of
technologies including automated machinery. The mass-produced automobile
drastically reduced demand for many equestrian occupations, including
blacksmiths and stable hands. Successive waves of earth-moving equipment and
powered tools displaced manual labor from construction. In more recent years,
when a computer processes a company’s payroll, alphabetizes a list of names, or
tabulates the age distribution of residents in each Census enumeration
district, it is replacing a task that a human would have done in a previous
era. Broadly speaking, many—perhaps most—workplace technologies are designed to
save labor. Whether the technology is tractors, assembly lines, or
spreadsheets, the first-order goal is to substitute mechanical power for human
musculature, machine-consistency for human handiwork, and digital calculation
for slow and error-prone “wetware.”

Meanwhile, there is ample evidence that automation does not
lead to job substitution, but rather to a re-allocation of both jobs and tasks
in which robots complement and augment human labour by performing routine or
dangerous tasks. This in turn places a premium on higher-skilled labour in the
sectors in which automation has substituted for labour, but also may create new
lower-skilled jobs in other sectors due to spillover effects. As economist
James Bessen comments, ‘Although computer automation is not causing a net loss
of jobs, it does imply a substantial displacement of jobs from some occupations
to others.’ (Bessen 2016). Various studies show a positive correlation between
automation and jobs. For example a 2016 discussion paper for the Centre for
European Economic Research found that, ‘Overall, labor demand increased by 11.6
million jobs due to computerization between 1999 and 2010 in the EU 27, thus
suggesting that the job-creating effect of RRTC6 overcompensated the
job-destructing effect.’7 (Zierahn, Gregory and Arntz 2016). A review of the
economic impact of industrial robots across 17 countries found that robots
increased wages whilst having no significant effect on total hours worked
(Graetz and Michaels 2015). And although manufacturing jobs have been declining
over a number of years Brookings Institution analysts report that countries
that invested more in robots lost fewer manufacturing jobs than those that did
not (Muro and Andes 2015). Indeed a study by Barclays in the UK argues that an
investment in automation of £1.24 billion over the next decade could safeguard
73,500 manufacturing jobs and create over 30,000 jobs in other sectors.
(Barclays 2015). According to analysis by PwC of data from the U.S. Bureau of
Labor Statistics, the most robotics-intensive manufacturing sectors in the US
as a proportion of the total workforce – i.e., automotive, electronics and
metals – employ about 20% more mechanical and industrial engineers and nearly
twice the number of installation maintenance and repair workers than do less robotics-intensive
manufacturing sectors and pay higher wages than other manufacturing sectors.
These sectors also tend to have a higher proportion of production-line workers
– and these workers earn higher wages than sectors that are less
robotics-intensive. (PwC 2014). Consultants Deloitte argue that, ‘While
technology has potentially contributed to the loss of over 800,000
lower-skilled jobs (in the UK) there is equally strong evidence to suggest that
it has helped to create nearly 3.5 million new higher-skilled ones in their
place.’ (Deloitte LLP 2015). And countries with the highest robot density,
notably Germany and Korea, have among the lowest unemployment rates. Economist
David Autor sums it up with the statement that ‘Automation does indeed
substitute for labor – as it is typically intended to do. However, automation
also complements labor, raises output in ways that lead to a higher demand for
labor, and interacts with adjustments in labor supply. Even expert commentators
tend to overstate the machine substitution for human labor and ignore the
strong complementarities between automation and labor that increase
productivity, raise earnings and augment demand for labor.

Now the purpose of this research is figure out how
automation impacts individuals jobs, the reasons that people fear about their
jobs and how to eliminate their fear.

















I'm Dianna!

Would you like to get a custom essay? How about receiving a customized one?

Check it out