Technology Automation And Unemployment Relationship

Anil Kumar Ranjan, Head-IT, Macawber Beekay Private Limited

As technology improves, jobs previously requiring manual work and human power will become scarcer, leading to a decline in the demand for human work in those sectors. We must understand the implications of such a revolution and prepare for the consequences of farreaching technical unemployment.

Time has come when simple work will be automated and only critical/complex work which can’t be automated easily will be available for human, but we are not prepared for that. There are not adequate social and economic policies in place by the government to control for the scale of such a massive technical unemployment once those technologies become useable and widespread.

The technological development can be seen in The Indian banking industry which has made banking easier, has also led to a slowdown in the hiring of staff at banks. Although there have been hiring’s, the nature of skill sets required is changing with a lot more focus on the frontend talent.

Low-end back-office jobs like data entries will no longer be required in the next three years. Analytics and artificial intelligence are already being used to do the jobs once considered sacred, like underwriting loans which means that human skills, which were considered imperative for basic work not long ago, may not be required.

Software can carry out routine IT support work and repetitive back-office tasks - the very tasks global companies originally outsourced to India. Repetitive and laborious tasks are at risk of being replaced by smart machines.

Automation threatens 69 percent of the jobs in India, while it’s 77 percent in China, according to a World Bank research.

If technology automation is not planned well, it will be a disaster. By 2021, one in four job cuts may be from India. A quarter of people losing their jobs because of automation by 2021 will be from India, according to research by human resources (HR) solutions firm People Strong.

These job cuts due to automation will not happen immediately, but the impact will be visible by 2020.

In my opinion, Automation is suited to the developed countries of the world which have attained a state of full employment. Automation is not suggested for a developing country like India because here the state of this state of  unemployment is visualized, and automation will increase this state of unemployment.



But, the technological advancements are pre-conditions to sustain high growth levels in the economy. Automation is a must also to compete in the global market as automation increases accuracy percentage and decreases labor cost, so the product will be cheaper and acceptable by more consumers. It raises the efficiency and productivity. This principle applies to public, private and non-profit sectors alike. Automation reduces bureaucratic discretion and reduces opportunities for corruption. The technological advancements are pre-conditions to sustain high growth levels in the economy.

Some steps need to be taken to minimize the adverse impacts of automation on employment opportunities like:

1. Technical skill training and up-gradation.

2. Employment Insurance & Social support (Adequate social and govt support systems like insurance should be put in place to support workers while they are unemployed or not working regularly).

3. Due to automation employee wages can also go down so govt should make arrangement to create a job at state and district level which will be very helpful for employees to be at own home and work, rather than to migrate to Metro cities to work where they have to pay more to live. It will reduce the load of rail transport also and govt can decrease rail budget.

4. Changes is required in education system where more topics should be on technical skill, Cyber Security, a base knowledge on Allopathy, Homeopathy & Ayurvedic medical system to all the citizen so that they can understand the treatment which is given to them by doctor and will not be fooled and can work in case of emergency as we have very less number of Doctor per patient. There should be a topic on General and Cyber law so that citizen can  understand legal system, our constitution and will not depend only on lawyer.

5.Our govt would require more money for infra/technology development/Automation, to improve education system with modern technology,for technology research,to create new jobs and for that we do not need an IAS/IPS/IRS like officer, but we need a good business and technical management people like Reliance or other big corporate houses have. They don’t have IAS/IPS/IRS, but their business grows every day and our govt/PSU sector never gains same profit as other corporate. Live example: Reliance launched JIO mobile services and boomed with huge profit, but that idea could not come to BSNL. Govt need to think as Govt/PSU sector can create a good number of secured jobs.

6. Minimum educational background should be fixed for leaders who contests election so that they can understand modern automation technology and can take decision accordingly.

7. There are some businesses which are illegal, unethical, against our religious belief but are running with huge turnover but our govt is not getting any tax for that. In case of technology automation, unemployment can force our citizen towards that business so either govt should legalize that or should arrange to stop that forcibly.

8. Robotics technology/Automation will replace many human jobs with robotic machine and robot will not pay any tax to govt so govt should have own income sources and should be less dependent on citizen’s income tax.