Technological Unemployment: What does this Mean for Future of HRM?

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Technological Unemployment - What is it?

When technological developments like AI and automation replace human workers, a condition known as technological unemployment occurs (Techopedia, 2023). As new technologies revolutionise our work processes, bringing about both efficiency gains and job losses across many sectors, this idea is more important than ever.

Although technology has the potential to improve efficiency and provide new opportunities for creativity, it has also prompted discussions about the future of work and the skills that will be valued. This presents a complicated problem for today's workforce.


Watch this video for better insight on technological unemployment



Source: (Carnegie Council for Ethics in International Affairs, 2020)


What do Numbers Say ?

As per an analysis by IMF, nearly 40% of the world's workforce is impacted by AI in some way. (IMF, 2024). About 60% of occupations in developed economies may be affected by AI. The projected AI exposure in low-income nations is 26% and in developing economies, it is 40% (IMF, 2024). One distinguishing feature of AI is its capacity to influence occupations requiring a high level of expertise, in contrast to the historical tendency of automation and IT to influence mundane activities.



Source: (IMF, 2024)

Example of Technological Unemployment

There has been a significant decline in the number of cashiers working in retail businesses in recent years, as self-service checkouts have taken their place (The NewEconomy, 2019). Amazon is a pioneer that introduced the self-checkout concept in its stores. Cornerstone Capital Group has predicted that technology would eliminate 6-7.5 million retail jobs in the United States alone over the next few years (Business Wire, 2017). Because people are always looking for ways to make things easier, a lot of people's jobs might become obsolete, not just in the United States and China but around the world. Amazon is just one of many firms that has promised that technology advancements would not lead to the replacement of human cashiers with machines. However, it is important to remember that banks made similar promises when they first introduced automated teller machines (ATMs) many years ago, and ultimately there was a replacement for humans.



Cashierless Store at Amazon

Source: (ZD Net, 2020)


Role of HR in Technological Unemployment

Human resource management (HR) has to change because of automation and AI. This means planning to avoid job losses, making employees better at their jobs, and using technology to create new job opportunities. HR's job is changing from just looking after employees to helping companies with technology changes. To do this, HR needs to know how technology affects jobs and focus on making a workforce that can adapt and learn new skills. 

Following are some roles of HRM in technological unemployment.


  1. Workplace planning: HR needs to plan to adapt to changes in AI and automation. This means figuring out which jobs might be lost and which new ones might be created.
  2. Prioritize Soft Skills: With AI and automation, soft skills like critical thinking and emotional intelligence are more important. HR should focus on developing these skills in employees.
  3. Recruitment strategies: HR needs to change how they hire to get candidates with the right skills. They might look for people with strong technical skills or who can work well with AI.
  4. Learning and Development: HR should create a culture that encourages lifelong learning to keep up with technology. Providing training opportunities like seminars or online courses helps.
  5. Ethical balance: It's important to consider the ethical implications of technology on jobs. HR should ensure fairness in the transition to automation and consider the social impact of job loss.
  6. Technological Literacy: HR should ensure all employees understand the technology they use at work, not just those in technical roles.

References 

Business Wire, 2017. 6 to 7.5 Million U.S. Retail Jobs at Risk Due to Automation. [Online]
Available at: https://www.businesswire.com/news/home/20170518005461/en/6-to-7.5-Million-U.S.-Retail-Jobs-at-Risk-Due-to-Automation
[Accessed 31 March 2024].


Carnegie Council for Ethics in International Affairs, 2020. James Manyika: AI & Technological Unemployment. [Online]
Available at: https://www.youtube.com/watch?v=GlIkue29QJY
[Accessed 31 March 2024].


IMF, 2024. Gen-AI: Artificial Intelligence and the Future of Work. [Online]
Available at: https://www.imf.org/en/Publications/Staff-Discussion-Notes/Issues/2024/01/14/Gen-AI-Artificial-Intelligence-and-the-Future-of-Work-542379?cid=bl-com-SDNEA2024001
[Accessed 31 March 2024].

 

Techopedia, 2023. Technological Unemployment. [Online]
Available at: https://www.techopedia.com/definition/technological-unemployment
[Accessed 31 March 2024].


The NewEconomy, 2019. Technological developments are making retail cashiers obsolete. [Online]
Available at: https://www.theneweconomy.com/technology/technological-developments-are-making-retail-cashiers-obsolete
[Accessed 31 March 2024].

 

ZD Net, 2020. Amazon offers retailers access to the tech behind Amazon Go. [Online]
Available at: https://www.zdnet.com/article/amazon-offers-retailers-access-to-the-tech-behind-amazon-go/
[Accessed 31 March 2024].

Comments

  1. G K A N AbeywickramaApril 11, 2024 at 8:22 AM

    This article provides a comprehensive overview of technological unemployment, outlining its implications for the future of work and the role of HR in addressing this challenge. It highlights the need for HR to adapt to changing workforce dynamics, prioritize soft skills, adjust recruitment strategies, and promote lifelong learning among employees. Additionally, it emphasizes the importance of ethical considerations and technological literacy in navigating the transition to a more automated workplace.

    ReplyDelete
    Replies
    1. Ruvini DissanayakeApril 13, 2024 at 11:55 AM

      I am inspired to see your comment and also it says important to think about ethics and know about technology when dealing with this change.

      Delete
  2. LAthan (E223750)April 11, 2024 at 2:16 PM

    Thank you for this insightful post on technological unemployment. The rise of AI and automation is indeed transforming job markets globally, posing both challenges and opportunities for the workforce. I agree with your points on the crucial role of HR in navigating these changes through strategic workforce planning and enhancing the skill set of employees.

    Additionally, I believe that reskilling and upskilling are fundamental strategies that can help mitigate the impact of technological displacement. These initiatives not only equip employees with the skills necessary to thrive in new or evolving roles but also enhance their employability within the changing landscape. I recently came across a fascinating blog that delves deeper into this topic: [Reskilling and Upskilling](https://veroniwijesinghe.blogspot.com/2024/04/reskilling-and-upskilling-know.html). It provides some great insights and examples of how individuals and organizations can implement these strategies effectively. Integrating these approaches with the roles you've outlined for HR could form a robust response to the challenges posed by technological advancements.

    ReplyDelete
    Replies
    1. Ruvini DissanayakeApril 12, 2024 at 4:29 AM

      Thank you for the fact full comment on my blog and also for giving me the link to find more details.

      Delete
  3. Ruki(Rukshan Dinesh-E232179)April 11, 2024 at 10:47 PM

    Due to automation and artificial intelligence, the workforce is changing. HRM must adjust by concentrating on job losses, skill development, and the use of technology to create new opportunities. This entails being aware of how technology affects employment and developing a workforce that is adaptable and skilled for the future. Thanks for the great post It's indeed pleasure reading!

    ReplyDelete
  4. Thushari Dilrukshi ( E-225496 )April 12, 2024 at 4:47 AM

    This blog post delves into the implications of technological unemployment on the future of HRM. It emphasizes the evolving role of HR in navigating job losses, upskilling employees, and leveraging technology for creating new opportunities. HR's focus on soft skills, recruitment strategies, learning and development, and ethical considerations reflects the need for proactive adaptation in the face of technological advancements.

    ReplyDelete
  5. Kawya CabralApril 12, 2024 at 5:27 AM

    This blog highlights the complex impact of technological advancements on employment, discussing the concept of technological unemployment and its implications for the workforce. It underscores the need for ongoing discussions and adaptation to navigate the changing landscape of work and skills. 🤖🔄

    ReplyDelete
  6. Anjali Hettiarachchi E225448April 12, 2024 at 12:31 PM


    HR plays a crucial role in facing technological unemployment. It involves planning for changes, prioritizing soft skills like critical thinking, adapting recruitment strategies, promoting lifelong learning, ensuring ethical balance, and enhancing technological literacy for all employees. This helps companies navigate the impact of automation and AI while creating new opportunities for the workforce.

    ReplyDelete

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