Technological progress has had an enormous effect on work, jobs, and skills, as well as employment throughout the history of mankind. One of the more recent and most impactful examples is the 19th century’s Industrial Revolution when machines replaced many of the professions that had previously required manual labor. This was a pivotal moment in human history and one that fundamentally changed modern society.
Artificial Intelligence and machine learning, cloud computing, and cybersecurity – today the pace of technological evolution is staggering and its impact on employment has sparked strong debates and even greater concerns. New technologies bring fear that many people will be redundant which is partly true with predictions that over 300 million people may be replaced by machines in the future. However, not all is as apocalyptic as some may consider with technology offering many benefits, not just for employers but employees as well.
In this article, we will dive into this complex topic and try to answer a number of questions regarding the impact of technology on employment, both positive and negative, and the overall future of work.
Technology replaces jobs and creates new working opportunities, right?
Undoubtedly, the biggest concern that people have had over the past few years is the sudden rapid evolution of AI and its much-hyped products such as ChatGPT and Midjourney. AI tools have already managed to automate numerous tasks previously done by humans and have the potential to make some significant shifts in the job market in the near future. Today, AI is already being used in healthcare, biotech, finance, and other industries.
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In the near future, many routine jobs will be replaced and this process is already happening. Thus, data entry, assembly line work and even, in some cases, customer service will become automated.
But technology is also “to blame” for the creation of new jobs that require specialists with specific skills and responsibilities including social media managers, cybersecurity experts, and data analysts. Furthermore, technological advances have led to the development of the gig economy with more freelancers and contract employees appearing on the job market.
Data shows that over 25 million jobs will be replaced by automation in just three years – these will be mostly administrative roles such as cashiers and ticket agents.
Suggested reading: Future of Jobs Report 2023: Insights into the future of the job market.
Technology’s benefits for the job market
As previously mentioned, technological evolution will impact the labor market both positively and negatively. In this section, we’ll take a closer look at the benefits.
1️⃣ Technological advances generate new jobs
Technology has made it possible for new industries to emerge, and more people have shifted their attention toward employment in software development, data analysis, and the newest profession – AI Prompt Engineers – specialists who are able to develop the optimal textual input for AI so that it can generate more accurate responses.
According to one of the latest studies, 60% of employees working today are engaged in activities and professions that did not even exist 80 years ago. An 85% increase in employment since 1940 can be explained by the evolution of technology which has been responsible for new jobs appearing.
2️⃣ Technological progress provides better working conditions
Today, advanced machinery, powered by software and in some cases even by AI, carries out dangerous tasks such as lifting heavy items, stirring 2000°C molten metal, and operating in polluted surroundings. This in turn has led to a considerable reduction in the number of injuries in the workplace with humans focusing on more skilled and less repetitive operations.
3️⃣ Technology increases productivity
There’s no doubt that technological evolution has allowed employees to significantly improve their levels of efficiency which means that companies have started to produce more in less time which in turn has led to an increase in revenues and wages.
4️⃣ Technology significantly improves communication
Video conferencing, online education, and telehealth have all become possible due to technological advances. These gained even more popularity during the COVID-19 pandemic and are now part of the new normal with an increasing number of freelancers and contract employees benefiting from flexible working hours.
5️⃣ Technology produces more opportunities for education
Today, virtually anyone can take online courses and children in remote areas can benefit from online education. This can considerably improve literacy levels and allow people to acquire new skills that can help them to get better jobs. China is one of the countries that is widely implementing digital literacy programs to improve the skills of various workers. For instance, farmers can now use livestreaming to advertise their produce, analyze data related to customer needs, and create unique offers.
Livestreaming farmers
Technology’s negative impact on employment
Employment continues to be impacted by technology, as it has always been. Some jobs either disappear completely or are replaced by machines and this is an ongoing process. Let’s explore the negative effects that technology has on the job market:
1️⃣ Technology leads to job displacement
Without a shadow of a doubt, the major impact of technology on employment is replacing humans as a result of the automation of routine and manual operations. One example is the self-service checkout machines that continue to appear at stores around the world while another is AI-powered robots undertaking mundane tasks in factories.
Experts have recently warned that, on a global scale, the latest advances in AI could lead to around 300 million full-time jobs being replaced by machines. Both in the U.S. and Europe, around 60% of jobs could be partially or fully automated with about 25% of these being carried out by AI.
Robots building 3D printers
2️⃣ Skills mismatch
Since technology is advancing at a fast pace, not everyone is able to keep up with it. This has led to a mismatch between the skills that employees possess and those that are required in the contemporary working environment.
Because an increasing number of workers have problems adapting to the changes brought about by technological evolution, they cannot meet the requirements of certain positions on the job market. Thus, the skills gap is growing with more new positions appearing on the market but very few workers with the appropriate skills able to fill those roles.
The importance of upskilling
Upskilling involves acquiring new, improved abilities that are related to a person’s position – a “leveling up” of their abilities. Since every company aspires to stay competitive in the digital age, upskilling is no longer simply an option but a necessity.
3️⃣ Technology contributes to employee burnout and stress
Because communicating has become easier thanks to various online tools, many employees face the problem of being permanently linked to their jobs and thus the line between their private life and work becomes blurred which can cause stress and burnout. Furthermore, according to a study published in the Journal of Occupational Health Psychology, people working in high-pressure sectors such as finance and technology experience a great deal of stress as a result of several factors including high workloads and job insecurity.
4️⃣ Technological advances create job insecurity
Full-time jobs are usually under protection by employment law in virtually every country. However, things are different for freelancers. When an employer needs to lay off some staff so that the company can stay afloat during difficult times, the first to leave are more likely to be freelancers.
It is interesting to note that in 2022 a study carried out by the American Psychological Association showed that employees from the U.S. and parts of Asia felt job insecurity that was triggered by robots. What is even more interesting is that even people from industries where robots were not employed felt job insecurity. These fears are somewhat subjective but nevertheless have been expressed by employees.
Final word
The effects that technological development has on employment are somewhat complex, bringing about both positive and negative consequences. From one perspective, AI will automate various tasks, leaving a large number of people without a job, and leading to a widening skills gap. However, from another perspective, this technological progress will create new jobs and contribute to economic growth.
It is important that companies pay more attention to upskilling so that their employees can gain the skills necessary for the modern working environment which will ultimately lead to the reduction of unemployment figures throughout the world.
