Published Date : May 06, 2019
The world is experiencing a paradigm shift from manual work processes to automation. As a result of Industry 4.0, every process now works on a network. With developing technologies, the concern of losing your job to automation is bothering majority of people today. Moreover, people with poor skillset are affected the most.
However, technology is not actually reducing workforce, rather, it is developing inequality in it. According to an MIT research, the economic status of employees with poor skills has not improved. Although the recovering post-economic crisis has shown decent improvement, it does not apply for under-skilled workforce. Above all, recovering from the economic crisis, business for highly skilled people support their growth. This impacts the economy of low skilled employees.
How Technology is Creating Inequality in Jobs?
If we look at recent studies, the wages of low skilled employees have barely grown 2.3% in the last 10 years. Whereas, for managerial positions and senior management it grew at 9% and 19% respectively during the same tenure. This led researchers to propose a new hypothesis. It states new technology is improving the productivity of workers who are already productive. This, as a result, widens the income gap between employees.
The inequality in terms of jobs and incomes is also a result of unequal technical skills of the employees. In 2017, a survey revealed that 50% of the employees are not as technically sound as their colleagues. They are capable to write an email or just complete minor technical tasks. However, spreadsheets or word processing is far beyond their range.
To bridge the gap between employees it is important for both employers and employees to accept the change and move with the pace of the time. Training shall be an important part of employees grooming program explaining the technology and its application to the employees.