By Claire Moraa
- For every robot per a 1000 workers, the employment-to-population ratio goes down by 0.2%
- Nearly 47% of the U.S. workforce faces the risk of job displacement due to automation in the next decade
The rapid rise of work automation is growing at an unprecedented rate and is now affecting even low-skilled workers with 47% of workers facing job displacement in the next decade. Research shows that when robots are introduced in various industries, job transitions to better-paying roles become reduced significantly. Robots are not just replacing jobs, they’re also reducing the overall career value and opportunities for upward mobility for low-skilled workers. To add salt to the injury, the unemployment rate is steadily increasing jumping to 4.2% from 3.7% in 2023.
Why This Matters: For any worker, a successful career transition involves climbing the career ladder having gained skills and experience along the way. And for each level, remuneration must match the hard work achieved. However, robots in every industry is now diminishing the career value. Low-skill workers who hope to climb the corporate ladder will be rendered redundant and those who remain will stagnate in their positions because after all, this group is not that interested in advancing with only 20% take on job-related learning.
If this trend continues, sectors may increase income inequality. Using robots reduces the average relative wage of low-skill workers and shifts employment towards lower-paying, less skilled roles. In fact over the last four decades, automation has led to decreased wages for men without a high school degree by 8.8%. The system is clearly biased. According to a report, organizations do not invest in this group of workers. While 47% of higher-skilled workers received an appraisal performance, only 14% of low-skilled workers got the same. It is this lack of recognition that further limits their opportunities for advancement and recognition within the workplace.
Situational Awareness: The call is clearly coming from inside the house and organizations need to do some housekeeping. While we cannot run away from robots, businesses must consider initiatives that support workforce development and facilitate transitions to higher-paying and more sustainable employment opportunities. We must be cautious not to let automation lead to career stagnation, as this would undermine its primary goal—to enhance productivity and create new opportunities, rather than simply displacing workers.
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