Although the advent of ATMs did cause changes in banking responsibilities, it also brought about the creation of new professions in customer service and ATM maintenance. Overall, technological improvements have had a mixed effect on employment in the banking sector, with new opportunities typically being created alongside changes in work positions, even while some mundane tasks have been replaced by machines.
According to a 2017 study on automation's impact on Germany, there isn't enough data to conclude that automation eliminated jobs entirely, but it does have an impact on the kind of occupations that people hold; increases in the service sector more than made up for automation's losses in the industrial sector. Additionally, manufacturing workers were not at risk from automation and were much more likely to keep their jobs, albeit perhaps not in the same capacity. Automation did, however, cause labor's income share to decline because it increased productivity but not pay.
There are advantages and disadvantages to using automation technologies and robots in labour surplus economies. Positively, automation can boost productivity, creativity, and efficiency. It may, however, also result in job displacement, necessitating an emphasis on worker reskilling and upskilling in order to adjust to shifting employment demands. For equitable opportunity distribution and sustained economic growth, it is imperative to strike a balance between worker development and technological improvements.
Labour surplus economies can take several steps to ensure gainful employment in the face of AI advancements. This includes:
1. Investing in Education: Prioritize education and skill development programs that align with emerging technologies. This helps the workforce acquire the skills needed for jobs in the digital age.
2. Promoting Entrepreneurship: Encourage entrepreneurship to stimulate job creation. Support startups and small businesses that can leverage AI technologies to create new opportunities.
3. Fostering Innovation: Create an environment that fosters innovation, research, and development. This can lead to the emergence of new industries and job markets.
4. Implementing Adaptive Labor Policies: Develop flexible labor policies that can adapt to changing economic landscapes. This includes mechanisms for upskilling and reskilling workers.
5. Collaborating with Industry: Forge partnerships between government, educational institutions, and industries to ensure that the education system is aligned with the skills demanded by the job market.
6. Social Safety Nets: Implement robust social safety nets to support workers during transitions, including unemployment benefits, healthcare, and other forms of assistance.
7. Ethical AI Practices: Promote the ethical development and use of AI to mitigate negative impacts. Encourage responsible AI adoption that considers societal implications.
By taking a holistic approach that combines education, entrepreneurship, innovation, and social support, labour surplus economies can navigate the challenges posed by AI and ensure gainful employment for their citizens.
The relationship between new technology and unemployment is complex and multifaceted. On the one hand, new technologies may lead to increased productivity and efficiency, resulting in job displacement for certain workers. On the other hand, new technologies can also create new job opportunities and stimulate economic growth, leading to overall job creation. The impact of new technology on unemployment will depend on factors such as the type of technology being introduced, the industry in which it is being used, and the skills and education of the workforce.
The question is if India, as a nation, both with respect to government initiatives and private sector initiatives, anywhere close to worker reskilling and upskilling over the next ten years?