May 11, 2020 Automation and Job Loss: Understanding the Dynamics

Automation is changing entire industries; workers need to be transitioned to new jobs created by automation and technology.

Many industries are taking up technology and automation in place of humans. Now, jobs that used to be done by five or six people have been delegated to machines or robots. Because of this, there have been job losses in many areas where automation is taking over. But, can companies and whole industries find a balance between automation and job losses?

It Depends on the Tasks

A lot of people do not understand that not all jobs can be automated. In some cases, trying to automate tasks can have negative effects on the whole process. For example, it would be impossible to automate the tasks of a secretary. Even if companies find ways to do so, the end result would not be as good as it would be if a human handled such tasks.

Because of these, areas that need a human touch cannot be automated and it is in these areas that there are likely to be few jobs lost.

Automation for Profits

We all understand that humans cannot work continuously; we need rest and because of this, companies are forced to plan 8-hour shifts. Machines do not have this problem. They can work continuously and only stop if the power goes out or if they break down and need maintenance. The direct result of this is increased production levels and profits.

Many of the businesses that realize this and know that most of their tasks can be automated invest in machinery that helps automate these processes. Businesses that use equipment financing from advancepointcap.com/business-loans/equipment-financing/ know they will see a return on investment and that the financing is justifiable due to the higher profits realized from automation.

Technology and Automation Can Lead to New Jobs

When thinking about automation, companies can introduce automation that either replaces or reinstates jobs. A good example of automation that replaces jobs is in the automotive industry. Here, robots are used to assemble cars with one robot handling tasks that were previously handled by several people.

Even if these robots displaced some people, their use opens up new job opportunities. These machines still need to be repaired, replaced, and maintained. The software these robots use has to be developed, updated, and maintained by software engineers. When looked at in this way, the use of automation in such an industry becomes justified, as it created new job categories.

Policies Can Help Reduce Job Losses

At this point, there is no denying that technology and automation will lead to the loss of some jobs. Because of this, public policies should be tailored in such a way as to increase wages and lead to more jobs. These public policies can include encouraging investment in training. This can help workers transition to new jobs created by automation and technology.

These policies can also stipulate insurance terms where workers can be supported as they transition to new jobs or unemployment insurance which would support those who lose their jobs due to automation.

Automation is changing entire industries and is already causing job losses in these industries. One way to ensure that this does not have widespread negative effects is to find ways to support people who lose these jobs by either helping them transition to the new jobs created by automation or supporting them when they become unemployed.

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