As we get better at developing our technology, the more we rely on robots to fill human jobs. It may be great for companies looking to cut their spending, but it comes at the expense of real humans who need jobs to survive. Not only are U.S. workers losing jobs as factories shut down and move across the border where labor is cheap, they’re also losing them to robots.
On Wednesday, Oxford Economics shared a new report that says robots are expected to take as many as 20 million U.S. jobs in the next decade. That’s about 8.5% of the total manufacturing jobs out there today. This can be bad news, but it also shows a shift towards a more technological dominated industry.
In some areas, the take over of robots does create additional jobs in the tech center. Someone has to design, program, and install these robots in factories across the country. There will need to be repairs and tune-ups. So, jobs in this sector will expand, but it will cause some hurt. Many Americans are laborers who aren’t tech experts and they will have nowhere to go with their skills.
When you start displacing millions of workers, that creates a vacuum. Suddenly, whole towns die where workers relied on that often fairly good paycheck while the business gets to carry on making their products. We’ve seen this happen in the rust belt plenty of times in the past few decades. Ask Detroit and Flint what happens when industries pack up and leave, replacing all their workers with cheaper labor.
It’s Not a New Thing
Robots in industry aren’t a new thing. Back in 2016, 43% of all the robots in the world worked within the automotive industry. But now a new problem is arising. Robots are getting smarter and cheaper as we get better at making them. The average price of a robot has fallen around 11% in the last 5 years. They keep getting better at doing mundane tasks.
China is one place where automation is on a significant rise. They already have one-fifth of the world’s robots working in their factories. “China is investing in robots to position itself as the global manufacturing leader,” Oxford Economics said. By 2030, China hopes to be the world leader in robot manufacturing.
Income Inequality
While robots will certain give a boost to productivity (robots don’t need a day off or take sick days), and they’re cheaper than hiring a worker (robots don’t need a salary or benefits), it causes a major economic problem. Again, look at Detroit and Flint. GM and the other major car manufacturers shot themselves in the foot in a major way.
When you fire all your American workers in favor of cheaper labor, suddenly you have many less customers who are unable to afford your products. The businesses get richer by lessening their labor costs, but what happens when 20 million Americans lose their job in the next decade? That’s 20 million people looking for new work.
“This great displacement will not be evenly distributed around the world, or within countries,” according to the report. “Our research shows that the negative effects of robotization are disproportionately felt in the lower-income regions compared with higher-income regions of the same country.”
“Automation will continue to drive regional polarization in many of the world’s advanced economies, unevenly distributing the benefits and costs across the population,” the report said.
