Labor Day in the Age of AI, Robots and Automation
A lot has changed in the more than 100 years since Labor Day was first recognized and celebrated. Two world wars, space travel, penicillan, the evolution from a rural to urban society, the evolution from an agricultural to manufacturing to service economy. To most of us, Labor Day’s origins and meaning are long forgotten; lost in history books abandoned on library shelves. But what’s more, in the context of our modern society, on the cusp of a Fourth Industrial Revolution, what does Labor Day mean now?
“Those that fail to learn from history, are doomed to repeat it.” ~ Winston Churchill
Looking Back At Labor Day’s Origins
The Labor Day holiday we celebrate today has its origins in the violent struggle between industrial workers and industrialists/capitalists in the late 1800s, during the 2nd Industrial Revolution.This was a period of workers and skilled craftsmen (small business owners) being replaced by machines and mass production. Workers competed with machines, putting in long hours, working in hazardous conditions, only to turn their money back over to the company though company towns. Within this context we have the triggering event for Labor Day.
It was the spring of 1894 that saw the Pullman Strike shutdown of most of the U.S.’s rail system, the deaths of 30 workers and over $80 million in damage. Beginning on May 14, 1894 four thousand workers for the Pullman company began a strike in response to wage reductions resulting from declining rail business. Confounding the wage cuts was the company town, where there Pullman Company also owned the housing and stores. While wages decreased, living expenses remained the same causing significant financial hardship for the workers.
Pullman Strike Damage 1894 — Fordham Yard, Illinois
Photo source: Wikimedia Commons
By June 26, 1894 the American Railway Union became involved with its members refusing to work on trains that contained Pullman cars. 125,000 in 27 states were involved. The strike later spread to 250,000 railway workers from 27 states, crippling rail transportation west of Detroit, MI.
President Grover Cleveland received a court injunction for strikers to stop interfering with the delivery of US Mail by rail. When strikers refused, the President called in the US Army to put an end to the strike. More violence between workers and government forces broke out but eventually strike ended.
Fast Forward 100 Years
Today we are at the beginning of the Fourth Industrial Revolution. Mass automation is projected to eliminate jobs across entire sectors of the economy while a variety of new, yet unknow jobs are likely to be created. In manufacturing we’ve already seen robots take the place of people on the assembly line. Now new forms of automation are being developed to take on more skilled tasks. Tasks that often involve human thinking.
Driverless trucks could eliminate 3.5 million jobs in the US alone(1). Artificial intelligence is doing legal analysis, take on marketing and much more. Robots are increasing their presence in warehouses. And Amazon Go(R) may be leading the way to the casheirless store.
Of course, like in past industrial revolutions, many new jobs will be created as well. However it’s hard to imagine and prepare for what those jobs may be, especially when they depend on emerging technologies like virtual reality, blockchain or artificial intelligence.
What happens if newly created jobs are not aligned with the skills or location of those who lose their jobs?
In a November 12, 2015 speech, Andy Haldane, the Bank of England’s Chief Economist, indicated that 15 million jobs in the UK and about 80 million jobs in the US are at risk of being replaced by robots and (2). The chart below shows the estimated likelihood that a job in a particular industry will be replaced by automation (robots, automation, AI, algorithms, etc.).
The sharing economy also has created tensions between the owners of traditional service, like taxi’s and hotels, and those looking to improve their well-being by participating in the sharing economy. Protests against Uber, Lyft and other ride sharing services have even turned violent around the world (3). Battles are being fought through regulations and lawsuits brought by traditional providers against sharing economy provides, like Airbnb (4).
Movements like Occupy Wall Street and rhetoric against the 1%ers are another contextual add to the contextual mix of economic tensions between the workers, and the owners of capital. The 2016 US Presidential election was largely driven by a theme of people getting a fair shake and rising up against “the system”. Wealth in the U.S. is increasingy becoming concentrated. Political lines are being redrawn. Could we see a 21st Centruy version of the Pullman Strike?
Where do we go from here?
The issues that led to the creation of Labor Day were complex. Many of these issues are still familiar today — a living wage, affordable housing, and politics. Tensions are sometimes high, and understandably so when your economic future is at risk. As you enjoy your day at the beach, your backyard barbeque or other fun filled Labor Day activity, here are a few points to ponder. Share what you think.
What does Labor Day mean to you? What can you do to better prepare yourself for the shifting economy? What role does government have in preparing the labor force for the changes ahead?
Sources:
- Self-d riving trucks: what’s the future for America’s 3.5 million truckers?
- “Labour’s Share” speech by Andy Haldane, Chief Economist, Bank of England, 12 November 2015.
- Anti-Uber Protests Turn Violent In France and Traffic chaos and violence as thousands of taxi drivers protest against Uber in Jakarta
- Airbnb in Disputes With New York and San Francisco
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About the Author
Larry Boyer, CBE, ACC helps people and businesses prepare for the changing and evolving economy of the 21st Century. As a recognized leader in advanced analytics, finance & economics, future technologies and personal development. He speaks, writes and consults on these topics and their impacts from a high level bringing them down to a more personal level where you can take action. His book The Robot In the Next Cubicle: What You Need to Know to Adapt and Succeed in the Automation Age is available for purchases where ever you like to buy books.
