The Impact of Automation: Job Creation in the Age of Technology

Machines replacing humans in the workplace have been a constant source of fear since the Industrial Revolution, and it has become a more prominent topic of discussion in recent decades with the rise of automation.

Automation, driven by rapid advancements in technology, has become an integral part of our daily lives, transforming various industries and altering the employment landscape. While concerns about widespread job loss due to automation have been raised, it is crucial to understand that automation also has the potential to create new jobs and reshape existing roles. The impact of automation on job creation and its implications for the future can be described as follows:

Job Displacement: Automation involves the use of machines, artificial intelligence and robotics to replace or augment human labour in repetitive or routine tasks. This can lead to job displacement in certain industries, especially those heavily dependent on manual labour or repetitive processes. However, it is important to note that automation primarily targets tasks rather than entire jobs. As routine tasks are automated, it allows workers to focus on more complex and creative aspects of their roles.

Job Transformation: While automation may eliminate some jobs, it also leads to the transformation of others. As technology advances, new roles and skill sets emerge, requiring human expertise to work alongside automated systems. For example, automation in manufacturing may reduce the number of assembly line workers, but it also creates a demand for engineers, technicians, and programmers to operate, maintain and enhance the automated systems.

Job Creation: Automation also fuels job creation by creating new opportunities in emerging industries. As technology continues to evolve, new fields such as artificial intelligence, data analysis, cybersecurity and renewable energy are emerging, offering a range of employment prospects. These high-tech industries require specialised knowledge and skills that were not in demand before, leading to the creation of new jobs and career paths.

Shift in Job Roles: Automation induces a shift in job roles rather than a complete replacement of human workers. Instead of performing repetitive tasks, workers are increasingly required to develop skills in critical thinking, problem-solving, creativity and complex decision-making.

Business Policy Changes: Businesses need to adapt their business policies to address the challenges arising from automation through education and training programmes, reskilling initiatives and social safety nets to support displaced workers.

According to many estimates, there will be more jobs created over the next few years than lost by automation. COVID-19 accelerated the transition into the age of the Fourth Industrial Revolution, and it is important to ensure that the new technologies remain human-centred and serve society. The challenge facing world leaders and policymakers will be to ensure that people are not disregarded in the rush to rebuild economies.

Aneesa Khan CA(SA)

Consultant

References

Nunes, A. (2021, November 2). Automation Doesn’t Just Create or Destroy Jobs — It Transforms Them. Harvard Business Review. https://hbr.org/2021/11/automation-doesnt-just-create-or-destroy-jobs-it-transforms-them

A short history of jobs and automation. (2020, September 4). World Economic Forum. https://www.weforum.org/agenda/2020/09/short-history-jobs-automation/