Disadvantages of Automation in Workplaces
The use of technology in the workplace is significantly influencing work activities. Though the use of technology, production firms have been able to increase their productivity per day as well as improving the quality of their production. Technology has again reduced the world to a small village characterized by a fast flow of information, labor, and capital from one country to another. Significantly, employers have been able to reduce their expenditure on wages by reducing the number of employees due to automation. Australia has not to be left behind in adopting technology in the workplace. Activities have been automated in the workplace, which has seen laying off a significant number of employees and consequently cutting on the wages expenditure. Everything has both good and bad sides. The automation of activities in the workplace is not different. Computerization of operations at the workplace favors the business owners through increased profits, resulting in significant unemployment levels. In Australia, automation in the workplace will lead to not only unemployment but also more significant inequalities.
Talylor et al. (2019), in their work “Australia’s Automation Opportunity: Reigniting Productivity and Inclusive Income Growth,” admitted that despite the significant positive impacts that will come with automation, there several negative implications of the automation including unemployment. According to Talylor et al. (2019), on average, 6.5 million full-time positions will be displaced in the next decade. Considering the increasing rise in Australia’s population, this number is expected to be higher than the estimated figure. Though it is expected that the economy will adjust and stabilize in the next 60-100 years, Taylor et al. agree that before the anticipated adjustment and stabilization occur, the displaced employees will face difficult moments in life. The Confession of Taylor et al. reinforces my argument that automation in the workplace will cause significant displacement of workers from their positions.
According to Hajkowicz et al. (2016), labor-intensive industries in Australia, including the mining industry, account for more than 75% of employees. It is undeniable that more than half of the employed population will be displaced if labor-intensive industries adopt automation in their business activities. Labor underutilization rate that covers the underemployed and the unemployed was estimated to be 28.4% by December 2019 (Talylor et al., 2016, p. 15). Considering the rapid increase in automation, the rate is expected to rise. Most of the youth in Australia are either engaged in school or doing routine jobs that require low- skills such as cashiers and kiosks. The introduction of self-service kiosks and automation of those activities requiring little skills will displace a significant number of Australian youths. Failure to find first jobs has adverse effects on the youths, including scarring effects on entering the job market, not forgetting the adverse impact on their career prospects.
Blit et al. (2018), in their report “Automation and the Future of Work: Scenarios and Policy Options,” anticipate that the next 20 years will witness a rapid technological revolution at a rate that was never seen before. These changes will benefit humanity in various ways, including increased productivity at the workplace and increasing the efficiency of energy use. As time progresses, man will find other applications of technology. Interestingly, hints that despite these potential advantages, it I likely that some people will be adversely affected because of being rendered jobless. The robotics are expected to significantly change the labor market by interfering with the factors of production, especially human labor (Blit et al., 2018 p. 1). Automation of workplace activities will result in most labor activities relatively less valuable, lower wage rates, and generally lower the living standards of workers (Borland & Coelli, 2017, p. 380). Again, this indicates that automation of the workplace will result in higher rates of unemployment than before.
Concerning inequality, automation of the workplace will contribute to widening the gap between the rich and poor, consequently contributing to inequality. The vulnerable and needy in the society will be deprived of possible sources of income, affecting their ability to educate their children, access quality healthcare, and provide quality care for their aging population (Sanders, 2018, p. 151). The overall effects will be increased inequality in society. Education is considered to be one of the most effective ways of dealing with unemployment by imparting relevant skills demanded in the market that helps one to find a job either in the private sector or in the public sector, this implies that failing to afford education for those rendered jobless by the automation of workplaces has significant long-term effects on equality.
Someone would object my argument by saying that automation in workplaces is fueled by technology, which also creates several employment opportunities, including working as software engineers, starting cyber shops, and investing in virtual businesses. While agreeing with these benefits of technology, it is worth comparing the number of those likely to benefit from the automation and those expected to suffer (Talylor et al., 2019, p. 27). Studying software engineering courses, investing in virtual businesses, or even talk about running cyber shops is far behind offering a solution to the Australia unemployment rate, considering the alarming rate at which the population is increasing.
Conclusion
I admit that the use of technology in doing business cannot be avoided, especially with the increased level of competition in the global market. However, the Australian government should be prepared to address the potential effects of automation in the workplace, including unemployment and inequality. Automation of routine activities in the workplace poses significant insecurity to the labor market. In pursuit of selfish interests, business organizations will automate their operations to cut on the wage expenditure. The affected people won’t be able to afford education and quality health care. The overall effect of all these is increased inequality. Therefore, automation in the workplace will result in not only unemployment but also more significant disparities.
Bibliography
Blit, J., Amand, S.S., and Wajda, J., 2018. Automation and the future of work: Scenarios and policy options. Centre for International Governance Innovation. Pp. 1-12
Borland, J., and Coelli, M., 2017. Are robots taking our jobs?. Australian Economic Review, 50(4), pp.377-397.
Hajkowicz, S.A., Reeson, A., Rudd, L., Bratanova, A., Hodgers, L., Mason, C., and Boughen, N., 2016. Tomorrow’s digitally enabled workforce: Megatrends and scenarios for jobs and employment in Australia over the coming twenty years. Australian Policy Online. Pp. 1- 17
Sanders, W., 2018. Unemployment payments, the activity test, and Indigenous Australians: Understanding breach rates. Canberra, ACT: Centre for Aboriginal Economic Policy Research (CAEPR), The Australian National University. Pp. 145-154
Taylor, C., Carrigan, J., Noura, H., Ungur, S., van Halder, J., and Singh Dandona, G., 2019. Australia’s automation opportunity: reigniting productivity and inclusive income growth. Pp. 1-36