Workplace robot is likely to increase inequality

Published: Wilson Clark

On: Jan 2018

A think tank has warned that government must take action to stop automation creating wage inequality. The Institute for Public Policy Research (IPPR) said that robots would not completely be bad for the economy.

However, IPPR also warned that lower-skilled jobs were more likely to be phased out in the upcoming decades and highly-skilled workers would be able to command good wages. While the government stated that it was committed to creating automation work for everyone.

As per the investigation done by the Institute for Public Policy Research, a centre-left think tank, most of the job would be transformed by automation but not eliminated. It is expected to raise productivity growth of UK by 0.8% & 1.4 % per year and it gives a significant boost to the economic growth.

IPPR warns workplace robot could inequality

According to IPPR, these increments might not be shared eventually, because on average, low-wage jobs possess five times greater technical potential which is to be automated than higher –paid jobs.

Below we have listed some risk factors that include in these sectors:

  • Transportation(63% of jobs could be eliminated)
  • Manufacturing(58%)
  • Wholesale & retail trade(65%)

The IPPR told that workers have knowledge of using advanced machine which would see their incomes growth, by extending the earnings gap. Research fellow Cary Roberts said that “Our analysis reveals that jobs with the potential to be automated that are closely associated with £290bn of wages each year.”

“Much of this would be replaced via increased wages because of the higher productivity as well as new jobs generated, but a substantial portion would be transferred from wages to profits.” She further added that some people will get an increase pay, while others are trapped in low pay and minimum productivity sectors.