Technology – The Giant killer of unskilled jobs

Technology- The Giant killer of unskilled jobs and what it means for India

There has been great advancement in the state of technology which is truly a boon for the industries. This has reduced work load and production costs. But what about the workers lined up hoping to be employed somewhere?

There is no firm’s fault anywhere. Firms are firms. What they only want is to earn maximum profits by producing the maximum at the lowest cost. They would always prefer technology to labour. Technology basically has “NO COMPLAINTS, NO DEMANDS.” They do not get tired, do not take leaves and do not require any wages to be paid except a yearly maintenance. Labour on the other hand is cumbersome and requires a lot of monitoring and huge workload on the part of management.  Investing on latest technology requires huge initial costs- from purchasing to installation costs but over a period of time, the firm could cover up this cost and would not require any more investment.  So, it is obviously true that if there is any innovation in technology, firms would always want to avail the benefits of the improved technology.

But looking at the scenario from the point of view of the economy, technological advancements have an adverse effect on employment. People find it difficult to find jobs as there is no job requirement in any firm- All thanks to the scientists and engineers who come up with latest gadgets/gizmos! It is even predicted that by 2020, robots and other technological stuffs would take away all the jobs from the people. In fact in technological advanced countries like the US, the process of destruction of jobs has already begun. This has led to stagnation of income, thereby leading to a fall in the tax revenue and growing income inequality in the country.

But at the same time I would say that firms would require people skilled I software and maintenance work. Although firms may not absorb that much labour that it used to before, but it would still require people who could handle all the latest technology and ensure that there is no trouble. Thus, the firms would only employ those who are well-equipped and knowledgeable in the fields of IT and maintenance.   However, the harsh reality is that in skill deprived country like the HR hub- India, this act as a major hurdle for getting jobs. Most of the people do not possess these skills, thus, leading to job crisis in the country.

Let’s hope that with the advent of the Skill India campaign, everything is sorted out!

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