The industrial revolution has seen a huge increase in the workforce due to the emergence of large factories. Over the years, the introduction of automated technologies has made repetitive tasks such as lifting and moving material more cost-effective. The use of automated robots is slowly decreasing the workforce; automated processes would enable factories to continue to run 24 hours a day without stopping.

Where are we seeing automation?

The introduction of automated and digital services have contributed to the closures of stores or decreased the availability of low-skilled jobs. Here are some examples:

Netflix

Before Netflix, there was Blockbuster a movie rental store that closed in 2014. Blockbuster had operations in 15 countries employing thousands of employees to handle thousands of movie rentals requests. Netflix on the other hand enabled customers to stream movies digitally straight to their television without leaving their sofa. By cutting out the visit to the store, eliminates the need for physical stores and low-skilled jobs.

Cashier-less Stores

Being a cashier at any store is an entry-level low skilled job for individuals starting their working career or making their way back into work. You may have started noticing self-checkouts popping up in stores slowly decreasing the need for physical checkout employees. Stores are also providing a ‘Scan as you shop’ concept which means the customers scan the products while they shop and pay for the goods at the end. Amazon is introducing cashier-less stores, which enables customers to come to walk in, pick up products, and walk out. These cashier-less stores will know what products have been taken and automatically take them out of your account. The existence of cashier-less stores will decrease the availability of low-skilled jobs in the retail industry.

Delivery Drones

As the Amazon revolution continues, Amazon is experimenting with the possibility of using drones to deliver packages. The use of drones could speed up delivery times for small items. If this service expands not only to Amazon packages but also to food and retail delivery service, this will decrease the need for delivery drivers and reduce the number of cars on the road.

Universal Basic Income

As the availability of low-skilled jobs decreases, this leaves a huge population without jobs and qualifications to take up other jobs. This will widen the gap between the poor and the rich; leaving the poor without any income. The concept of Universal Basic Income has been floated around which entitles every citizen in a country to pay for essential living expenses. This will be available to go citizens and anyone will have an option to opt-in or out of the scheme. Corporations that use automated robots that have replaced low-skilled workers could pay a so-called ‘Robots Tax’. This tax could help finance the Universal Basic Income, as corporations would have gained more profit as they have less expenditure on employees.

Some think that a Universal Basic Income scheme would make individuals lazy and not enter work. The Universal Basic Income would only cover essential living standards; if an individual wants to pursue a greater lifestyle then income from work would be essential. On the other hand, Universal Basic Income may help individuals that are currently studying and working; enabling them to focus on studying/training to pursue a better job. The Universal Basic Income will see the money go back into the local economy. In response to the COVID-19 pandemic, South Korean citizens received some kind of Universal Basic Income. The government imposed restrictions that the money to be spent on local businesses within the area of residence. The scheme helped local businesses to withstand the pandemic and continue to stay open. Local residents discovered local businesses they never thought existed and they started to connect with their local community.

Upskilling a Nation

The emergence of automation has shown the gap of workers without qualifications to take up higher qualified jobs. Governments will need to identify jobs they can upscale and then initiate a training programme to enable workers. These training programmes will need to provide sufficient and effective training to produce effective workers in a world of automation. Another point is to guarantee that there are job positions available upon completion.

Summary

As industries start to transition over to automated machinery to make production lines and customer service sectors more cost-efficient, governments will need to consider a future where a large population of citizens is unemployed due to a shortage of work as a result of the emergence of automated services. They will need to examine how their citizens can afford to sustain a minimal standard of living while unemployed and looking for new jobs. Governments and Industries will need to relook at every sector where there are opportunities for upskilling. The UK government has seen the effect of Brexit where they have found a decrease in available lorry drivers that crippled the transport of goods around the UK; leading to fuel and goods shortages. Countries around the world will need to start planning to reduce the impact of a world of automation.