What’s next? Automation and the Future of Job Markets: Navigating the new workforce landscape.
Nafis Mahim — September 07, 2024
JEC NEW YORK — _______________________________________________________________
Humans and Technology have lived alongside for decades. Yet, the rise of industrialization and the increasing collaboration among individuals have prompted newer, more efficient, and faster forms of technology everywhere.
The Significance
But what about such an idea makes it so significant in today’s world? According to statistics from last year, there were around 623,000 manufacturing businesses in the U.S. alone in 2023, which saw a 0.7% increase from the previous year (Ibis Statistics). What does this indicate? The number of businesses is increasing each year, and by almost an entire percent is nothing to disregard as insignificant. As businesses increase, so does more demand for efficient working. This is where the role of technology comes in: Automation.
One might ask themselves, “What is Automation?” As Britannica puts it, it is essentially, the “application of machines to tasks once performed by human beings” that could be even “impossible” at times (Britannica). Why is this so important? The answer is simple. As demands for different industries increase, so do the positions of different tasks. However, many don’t want to do those tasks as they may be dangerous. Other issues range from too many budget cuts due to the salaries of an increasing number of workers. All in all, the issues typically do not end, and with automated technology, things might just become easier, faster, and more cost-efficient in the long term.
What are the actual applications of Automation? To prove its importance, one must acknowledge its value first. Three years ago, the market value for automation industries was set at $192 Billion, and five years from now, it is estimated to be at around $395 Billion (Fortune Business Insights). Now, here are some of the practical uses of Automation (JR Automation):
- Fixed Automation: Usually used in the form of “arms” or other machines that continuously perform a certain stationary task.
- Integrated Automation: Real-time monitoring is done with the integration of software and machines that help organize, store, manage, and keep the company stable.
- Programmable Automation: Usually used for less demanding tasks, with low volume productions but higher changeovers.
Addressing the Controversy
As technology advances, so do the concerns. Many argue that automation can eventually lead to the complete loss of jobs and harm the economy in a variety of ways (Service Automation). The idea does have logical and practical truth in it. If tasks are much easier to do with a few number of machines, this not only saves time, but the number of workers the company has to hire. Thus, there is less hassle for the corporations, but more on the minds of workers. If there is less drag on the budget with salaries, then companies can boost their methods of buying more of such machines, and in a cascading series of events, lead to almost or full employment of machines. There would be no room for humans in that scenario.
However, there are several flaws to this idea. Many industries still require human workers to do certain tasks. For example, robots cannot do inventory counting (People Vox). Yes, they can keep data and store it, but they cannot manually/physically achieve this. At least, not yet. There are other activities, such as Receiving Inbound, which include the following: figuring out whether items were successfully transported, Quality Control Assurance, Measuring Compliance, and Managing Human Resource Requirements. The other aspects to favor automation rely on the idea that it can also do dangerous or hard-to-reach tasks. However, as efficient as such robots can be in the industry, they lack other factors. As researchers put it, they [automated/humanoid robots] are “far from matching the versatility and dexterity of human beings” (NCBI). Plus, there is the idea of fragile items during the manufacturing process. Human beings are naturally soft in terms of touch, compared to such forms of automation, and sometimes soft items require better handling of resources. Other flaws include bugs in the system, and temporary outages, during which manual work can continue to work.
In other words, humans are still very much needed in the workforce, and that wipes the possibility of a full takeover of automation — for now. Completely removing workers might also come with legal repercussions, as well as disinterest in the company within the employee circles, neither of which companies want.
Speaking of the current situation, there are numerous types of research conducted on industries with automation. With the advent of Artificial Intelligence (AI), the ranges of activities automation allow more possibility of worker displacement, which means that in order to outcompete such issues, workers would need to adapt better to their skills, attempt to be more productive, and perform their tasks efficiently in their fields. They would also need to work on their communication and analytical skills, as machines still fail to perform those efficiently. Either way, automation is expected to increase, and policies would need to be implemented (Brookings).
Disadvantaged workers that are negatively affected by such change would need assistance in a variety of ways to compensate. For example, such workers tend to struggle with job qualifications, quality education, health issues, housing issues, and childcare. In order to help tackle these issues, such people should be given good jobs through subsidy policies and taxes, as well as security. Other solutions can be implemented as well, in the form of mandates on number of employers and incentives for damages (BLS.gov). Workers might also need an “advanced set of supplements to ‘make work pay’” in the form of better childcare, government dollars, and perhaps even through limiting tax percentages for them (BLS.gov).
The Benefits of Collaboration
There are also positive sides to this story. According to a study by Deloitte, automation and human collaboration in the industry can “increase the speed and precision of routine operations and productivity,” which is extremely valuable today (Locus). In the Job market, companies constantly seek workers with special technical abilities, industrial experience, and practical knowledge. Due to the large scale amounts of machines and software today, there definitely is Computer Science involved, and people would be required for those fields. In today’s world, AI and practical automation is still far from such tasks.
Yet from the physical aspect, advanced machines do not run out of energy, require little strict attention, and can do tough physical tasks. In a world where both coexist, the best solution would be to have a balanced amount of both workers and such machines to fit both types of needs: the people’s and the company’s. Automated warehouses have had an expected growth of 13.6% by 2025, giving them a market value of almost $31 Billion (Paperform). This is just one example. If almost all the industries expand automation interests, but also create a fair competitive job market for human employees, corporations will not only be more appealing to larger audiences but also end up likely being more successful.
Since it is still the beginning of such large advancements, the future still remains unclear.
References:
Image: https://stockcake.com/i/human-robot-handshake_90553_1435
Britannica: https://www.britannica.com/technology/automation
Fortune Business Insights: https://www.fortunebusinessinsights.com/industry-reports/industrial-automation-market-101589
JR Automation: https://www.jrautomation.com/blog/blog/2024/01/31/examples-of-industrial-automation
People Vox: https://www.peoplevox.com/blog/the-8-warehouse-jobs-that-robots-cant-do/
NCBI: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10661952/
Brookings: https://www.brookings.edu/articles/understanding-the-impact-of-automation-on-workers-jobs-and-wages/
