Automation and Unemployment

This essay explores the impact of automation on the Indian labor market and whether it will lead to unemployment. It discusses the benefits and drawbacks of automation, the displacement of jobs, and the need for upskilling.

Running head: AUTOMATION AND UNEMPLOYMENT
Automation and Unemployment
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Introduction
Digitalisation is completely changing the business landscape along with the world of
work. It has helped in redefining the boundaries in relation to production and consumption in
India. This has helped in the creation of new opportunities but it has also created threat to the
employers along with the employees. The digital technology can be helpful in creating nation
pertaining to micro-entrepreneurs. Automation can be defined as the technology with the help
of which a procedure can be performed without any kind of human assistance. Automation is
indicative of the control systems that can reduce the aspect of human intervention. The
primary question that will be addressed during the course of the essay revolves around
whether automation can lead to unemployment in the society. This concept is of great
relevance in the present age as the fate of the youth in India depends on the innovations
taking place in the world of technology. There are many jobs in India that cannot completely
be automated but there are different kinds of activities related to it that is automable.
Automation of these tasks will require a change in the manner in which the jobs are
conducted. The digitalization of Indian labour market will make training necessary for the
evolving sector and provide skill sets that can help in matching to that of the requirement in
industry (Eberhard et al., 2017). Training can help in making the labour market prone to
technology that can significantly increase the organizational output.
Thesis Statement: Automation will create unemployment in the Indian labour market
Automation and Unease
The 19th century was witness to the fact that more and more workers were being
replaced by the machines. The mechanical technological innovation that took place in the 19th
century simply acted as a substitute for human strength along with dexterity. Currently the
rapid increase in relation to technological capabilities in the arena of Artificial Intelligence

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will be able to carry out tasks which is complex. It will thus create ubiquitous unemployment
within Indian labour market (Eichhorst et al., 2017) According to “The Economic Times”
almost 20 crore middle class people would become jobless by the end of the year 2025 on
account of the improvement in the arena of technology (Economictimes.indiatimes.com.,
2018). It has been found that around 52 percent of the population have been employed in the
sector of agriculture and population that is dependent on this service is growing at 10 percent.
The companies are developing the aspect of automation and developing the faculty of
artificial intelligence within that of the machines (Bbc.com, 2018). The rule based jobs will
be eliminated in the long run. Most of the middle class people are dependent on the rule
based jobs. The rule based jobs are made with the help of algorithms.
Employing robots and unemployment
There are companies like Foxconn that have employed the robots within the arena of
work and driverless cars are being made that can adversely impact the job market. The robots
are taking up many places and the robots do not want any kind of appraisal. This helps in
making them favourite among the employers. The robots do not want any kind of work life
balance and hence they will be a favourite for the top heads of the companies. The metro
sector in different places in India will be automated in the short run and the automobile
industry that employs 1 out of 6 people will be automated (Economictimes.indiatimes.com .,
2018). According to Campa (2017), the banking sector too will see the number of jobs
shrinking on account of automation pertaining to the payment system. Digital payment along
with that of ATM’s will lead to unemployment. In the last 15 years in India the banks have
grown at a rate of 10-15 times in the arena of assets along with liabilities. It has been stated
by Nica (2016) that employment has however grown by a meagre amount of 5 %. India will
bear witness to robo finance that will be capable of searching all the portals and giving back
the bank loan within that of half an hour.

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Automation in IT sector
Market volatility along with protectionism in countries like USA will see the revenue
growth of the India’s IT industry growing at a slow pace. Software will be able to do routine
IT support work along with repetitive back office task. These were the kinds of tasks that
were initially outsourced to India. According to Strawn (2017) automation can be made use
of for optimising the services that can increase unemployment within the Indian labour
structure. The third largest IT firm within India Infosys has said that automation would shift
9000 workers from low skill jobs to more advanced project (McClure, 2017). The competitor
Wipro had redeployed 3200 people in the year 2016 and it has predicted that it would move
4500 in this year (Verick, 2017). The IT Body of Nasscom has said that there would be a
reduction of 20 % jobs within the Indian industry in the next three years.
Benefits of Automation
Technological changes leads to destruction of jobs in different industries which is
sometimes followed by job creation along with higher standard in relation to living.
According to Ilavarasan (2017), it can be stated that in the long run whole economies will be
able to benefit from greater technology integration by improving the productivity and thus
can foster growth. Technology when added to the labour market can help in increasing the
output. An assertion has been made that machines can never act in a creative manner and
hence the people who are doing work that is creative will remain within the labour force
(Agrawal, Rao & Venkatesh, 2016). It has been argued by a spokesperson of Cognizant that
new technology will help in cutting the costs and thus improve the efficiencies pertaining to
the company. Automation will increase the sophistication in relation to the services of Indian
labour market. It has been stated by Kotwal (2018) that automation is not about replacement
of the human element but rather about the elevation of the role that is played by the people.
Automation can help in the aspect of value creation in relation to the roles. The shift in the

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arena of automation will require innovative skills. According to Kumar (2016), the
employees can still stay relevant in the present age if they can find new roles. They should
train themselves in the right direction so that they can stay relevant in the present era of
technology.
Automation can displace one thing and the young population pertaining to India can
move to another level. Up skilling can prove to be an anti-dote in relation to reducing
unemployment within Indian labour market. The smart machines can help in analysing the
performance of the students and can guide them through fast-moving terrain (Hill, 2017) It
can help in combining data in relation to the skills with job opportunities. The skill profile is
changing in every five years and the employees staying updated with the necessary skillset
can help in dealing with the aspect of unemployment. The changes taking place in the world
including that of automation will change the labour market in the coming years. There is a
race taking place in the arena of skills and technology and India keeping pace with that of the
new technology can lead to the improvement in the economy (Verick, 2017). Emphasis is laid
on the aspect of education in India and up gradation of knowledge can help the Indian people
in dealing with the aspect of unemployment in Indian labour market.
Unfeasibility pertaining to Automation
Advancements made in technology can create jobs but its negative impact on the
Indian labour market will be far greater. There will be software that will be able to respond to
the customer service inquiries. The robots will be able to check the store inventory. Damage
done by technology will be far greater as compared to the positive aspects associated with job
creation. Skill profile in relation to the employees is changing at a rapid pace and it is being
said that training can help in dealing with unemployment in Indian economy (Hill, 2017). It
can however be stated that it will not be possible to train such a large number of people.
Government have to take steps of providing income support that can help the workers in

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transitioning to the new occupations. It will almost be impossible for the government to
provide training to such a huge population and keep them updated regarding every new
advancement made in the field of technology. It has been asserted that machines cannot act in
a creative manner but it is being seen in the recent age that the marketers are making use of
the creative content of the machines. They are making plans of automating the personalized
delivery in relation to creative content. According to 64 % of the marketers, the machines
will be able to deliver business in the arena of real-time personalized advertising by the end
of the year 2020.
Conclusion
Artificial Intelligence can help in the implementation of complex tasks. It will create
unemployment in the Indian labour force. Automation is being developed by the companies
and artificial intelligence is being honed by the organizatons. The robots will take up many
positions and they do not want appraisal that makes them a favourite among the management
and the employers. The robots will not want any kind of work-life balance and hence they
will be preferred by the organizations. The advancements made in the field of technology can
help in creation of jobs but the negative impacts associated with it will far exceed that of the
positive outcomes. Software can successfully respond to the customer service enquiries. The
damage done at the hands of technology will be more than the merits in relation to the
benefits brought about by automation. The skills of the employees can be updated from time
to time with the active involvement of the government. Training can be of necessary help in
dealing with unemployment in Indian labour market. It can however be said that it will not be
possible to train the huge population of India and hence government will not be able to deal
with the aspect called automation.

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Impossible?.

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