Automation and Unemployment

Running head: AUTOMATION AND UNEMPLOYMENT
Automation and Unemployment
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1AUTOMATION AND UNEMPLOYMENT
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

2AUTOMATION AND UNEMPLOYMENT
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.