Robots At Workplace Could Be Responsible For Inequality, Says IPPR

The lower-skilled jobs would be cut down in coming few decades, while higher-skilled employees would demand for better wages, which will result in wage inequality.

Robots At Workplace Could Be Responsible For Inequality, Says IPPR
Workplace Robots To Fuel Inequality Of Wages: IPPR

The Institute for Public Policy Research (IPPR) warned that robots at workplace could be responsible for wage inequality. The organization also outlined that robots would not affect the economy much.

The lower-skilled jobs would be cut off in next few decades and higher-skilled employees would be gaining better wages, which will eventually lead to inequality. The government outlined that it would ensure automation would be favorable for everyone.

According to the IPPR, automation could lead to increase in productivity growth of U.K. by between 0.8 to 1.4% per year, and drive growth in GDP by 10% by 2030. The report stated that this growth would not be divided equally. Low wage jobs are more likely to be automated than high wage jobs.

The IPPR highlighted workers having skills to use advanced machines are likely to experience rise in their incomes, which would extend the earnings gap.

“Our analysis shows that jobs with the potential to be automated are associated with £290 billion of wages each year,” said research fellow Carys Roberts. “Much of this will be replaced through increased wages due to higher productivity and new jobs created, but a substantial portion could also be transferred from wages to profits.”

Roberts added that some people would gain a raise in pay, while others would be trapped in low productivity and low pay sectors.

A spokesman for the Department for Business, Energy and Industrial Strategy outlined the labor market of the U.K. was “resilient and diverse”. Moreover, the advancements in technology would lead to creation of new jobs.


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