Automation and Job Loss PDF

What is Automation? Automation is defined as the use of technology, machines, or systems to perform tasks with minimal human intervention. It encompasses a wide range of applications, from industrial processes to everyday household tasks. This technology-driven approach aims to streamline p...

What is Automation? Automation is defined as the use of technology, machines, or systems to perform tasks with minimal human intervention. It encompasses a wide range of applications, from industrial processes to everyday household tasks. This technology-driven approach aims to streamline processes, enhance efficiency, and reduce human error across various sectors. What is Job Loss? Historical Context The concept of automation dates back to the Industrial Revolution and has evolved significantly since then. The term itself was popularized in the automobile industry in the mid-20th century as automatic devices began to replace manual labor in production lines Types of Automation: Basic Automation: Automates simple, routine tasks like data entry or invoice processing. Process Automation: Involves automating more complex, multi-step processes that may span multiple systems. Intelligent Automation: Combines artificial intelligence with traditional automation to enhance decision-making and operational efficiency Automation is prevalent in various industries, including manufacturing (e.g., robotic assembly lines), healthcare (e.g., automated diagnostic tools), and consumer technology (e.g., smart home devices). It plays a crucial role in improving productivity and operational efficiency while allowing human workers to focus on more complex tasks. Benefits of Automation Increased Efficiency: Automation can significantly speed up processes and reduce errors. Cost Reduction: By streamlining operations, businesses can lower operational costs. Enhanced Precision: Automated systems often achieve higher accuracy than manual processes. Workforce Evolution: While automation may displace some jobs, it also creates opportunities for roles that require critical thinking and technological skills  However, as industries increasingly adopt robotic systems and artificial intelligence, the displacement of medium-skilled jobs is becoming more pronounced. For instance, a study by the McKinsey Global Institute projected that between 75 million and 375 million workers could be displaced by automation by 2030, highlighting the urgent need for workers to adapt through reskilling and transitioning to new occupational roles. A significant portion of the workforce may struggle to acquire the necessary skills to thrive in an increasingly automated economy. Therefore, while automation presents both challenges and opportunities for the labor market, addressing its impact on job loss requires comprehensive strategies aimed at reskilling and supporting affected workers to ensure they can adapt to the evolving economic landscape. The Ethics of Automation-Induced Job Displacement Should companies prioritize profit and efficiency over human employment? The moral responsibility of businesses and governments in handling the social consequences of automation. Balancing technological progress with human dignity and the right to work. With automation replacing aspects of human labor on a global landscape, especially utilized by large corporations as means of selfish goals, a number of questions arise regarding the ethics of the situation at hand. Ethical obligations should be considered when looking into situations of displacement, taking into account situations of the workers’ reliance on these large companies as a buffer against economic insecurity. Economic Impact and Fairness Adopting automation technology to increase productivity and lower manufacturing costs has been the trend in the technology supply chain for several years. from the service industry, according to Oxford Economics. The adoption of robots for automation led to a 1.3% decrease in the labor sector, from 2005 to 2014. It was estimated using the instrumental variable approach, that the effect of this automation is -0.54% and 14% for developed and developing economies, respectively. One of the impacts of the emergence of robotics to society is the distraction of human lives, knowing that robotics led to "creative destruction" of jobs. It opens opportunities for new jobs, but it also displaces repetitive types of jobs at the same time. AI technology is already causing an industrial revolution that has a significant impact on the manufacturing sector as well as professional, financial, wholesale, and retail services. According to the doomsday scenario, the consequences of AI on income distribution have a detrimental impact on the economy. Current educational requirements of the occupations that may grow are higher than those for the jobs displaced by automation, disproportionately affecting low-skill and low-wage workers. In advanced economies, occupations that currently require only a secondary education or less see a net decline from automation, while those occupations requiring college degrees and higher grow. The benefits concentrate heavily on the people owning the technology. Only those who can afford, have access to, and possess the necessary skills and knowledge to employ AI systems for economic advantage will do so; therefore, the wealth gap between the richest and poorest members of society will widen. The machines that are now executing tasks that once required human involvement are a result of AI. Increased automation has a significant impact on employment, which may have a considerable impact on the mental health of the general public. For example, people who have lost their jobs owing to the closure of factories are more likely to experience depression, substance abuse, and suicide Ethical considerations should include how to manage the transition to minimize harm and ensure a fair distribution of economic benefits. A Human-Centric Ethical View Khargonekar and Sampath, explained the four levels of what they call the pyramid of progress, a model central to the belief that automation, artificial intelligence, and related technologies are merely tools that should be used to enrich human lives and livelihoods, and humans will and should remain central to the workplace: Level 0: Cost-focused automation. At the lowest level of the pyramid, technology is used solely to gain economic benefits by reducing human labor. These cost-based programs are not only not socially conscious or human-centric, the researchers said, they often fail to deliver and can even be detrimental to business interests. Level 1: Performance-driven automation. This approach is more cognizant of the role that humans play in the loop. Processes and systems are reengineered to take advantage of automation while still using human skills and capabilities to fill in technological shortfalls. Level 2: Worker-centered automation. At this level, the business goal is not just performance optimization, but worker development and enrichment. In these systems, the goal of automation is not to sideline people or replace them with machines, but to encourage new forms of human-machine interaction that augment human capabilities. Level 3: Socially responsible automation. At the top of the pyramid, automation is deployed to produce more and better jobs for humans, driving economic growth while also promoting societal well-being. Attaining such a lofty goal requires “explicit, active interventions,” the authors write — that is, business leaders must commit to proactively identifying new revenue streams and job-enabling growth as they roll out and refine automation. Contemporary Normative Ethical views on automation generally tend to fall into two main categories: the allocative view and the desirability view. These frameworks allow for a methodological perception of how automation is approached in terms of its impacts on labor markets and economic insecurity. The allocative view is associated with discussions on Universal Basic Income (UBI). As automation causes workers to lose access to wages due to workplace automation, alternative sources of income should be provided (Cai & Wu, 2017). A universal basic income is seen as a way of redistributing the wealth produced by increased profits due to automation, with proposals including ‘taxing the robots’. The focus is on economic fairness, ensuring that people aren’t left without income as machines take over jobs. The desirability view encompasses two dominant perspectives: post-work ethics and workist ethics. The post-work view incorporates an ethical premise or corollary of the basic income claims. On this view, work is no longer seen as the main source of self realization and dignity; a society where work is no longer central to personal fulfillment or dignity (Clarke, 2015). Advocates of this view argue for an ideal of “full unemployment” in which individuals can pursue self-realization outside the constraints of traditional labor. A ‘fully automated world’, where an unconditional income guaranteed access to work performance, should thus replace the traditional self-realization through work (workist ethics), This perspective sees automation as a means of liberation from both the demands of work and the economic insecurity it can create. In sharp contrast, the workist view considers work to be an irreplaceable means of self-realization, and see automation as a threat. Whereas post-work thinkers see technology as a potential means of liberation from economic oppression and work as drudgery, this view tends to be characterized by 'automation anxiety' (Autor 2015). Instead of an ideal of emancipation from work, their view conveys an ideal of self-realization through work. Thus, if work is threatened by technology, then the technological impact on work should be contained. Automation and the Philosophical Concept of a Just Society John Rawls’s Justice as Fairness is a theory of justice for a liberal society that provides a framework for addressing the redistribution of wealth created by automation. Rawls constructs justice as fairness around specific interpretations of the ideas that citizens are free and equal, and that society should be fair. He argues that justice as fairness is superior to the dominant thought of utilitarianism. The automation-driven economy, which generates immense wealth for some while potentially displacing large segments of the labor force, brings to light significant inequalities in both economic and social terms. According to Rawls, such inequalities are justified only if they benefit everyone, particularly the least advantaged members of society—a principle known as the difference principle. Applying this to automation, the wealth generated by technological advancements should be distributed in a way that improves the situation of those most affected by automation, such as displaced workers. This redistribution could take the form of universal basic income, expanded social welfare, or retraining programs, ensuring that the benefits of automation are shared more equitably. Rawls also emphasizes fair equality of opportunity, arguing that everyone should have access to the same economic and educational prospects, regardless of their background or social standing. In an automated economy, this would mean creating policies that ensure all citizens, regardless of how technology impacts their jobs, have the means to thrive in a rapidly changing economy. Technology and the Meaning of Work The Intrinsic Value of Work in a Machine-Dominated World The concept of "work" is undergoing a fundamental shift as machines increasingly automate tasks once performed by humans. The rapid advancement of technology, particularly in the realm of automation, is fundamentally altering the nature of work and raises profound philosophical questions about the intrinsic value of work itself. What does it mean to "work" in a world where machines perform most tasks? Does work still hold inherent value, or is it merely a means to an end, a way to earn a living? The Traditional View of Work Historically, work has been seen as a fundamental aspect of human existence, intrinsically linked to our identity, purpose, and fulfillment. This view is rooted in various philosophical and religious traditions. Aristotle's Concept of Eudaimonia: The Greek philosopher Aristotle believed that human flourishing, or eudaimonia, is achieved through the pursuit of virtue and excellence. Work, as a means to develop skills and contribute to society, was seen as essential for achieving this flourishing. The Judeo-Christian Tradition: The Bible emphasizes the importance of work, viewing it as a gift from God and a means to express our creativity and dominion over creation. The Protestant Work Ethic: This influential ideology, popularized by Max Weber, emphasizes hard work, discipline, and thrift as virtues that contribute to economic success and personal fulfillment. These perspectives highlight the intrinsic value of work, viewing it as a source of meaning, purpose, and social contribution. However, the rise of automation challenges this traditional view. The Challenge of Automation As machines become increasingly capable of performing tasks once considered uniquely human, the traditional view of work is being questioned. If machines can do most jobs better and more efficiently, what is the role of human labor? The Threat of Job Displacement: Automation has the potential to displace millions of workers, leading to unemployment and economic hardship. This raises concerns about the future of work and the social consequences of widespread automation. The Redefinition of "Work": As machines take over routine tasks, the nature of work itself is evolving. We are increasingly tasked with tasks that require creativity, problem-solving, and human interaction – skills that are difficult for machines to replicate. The Purpose of Work to Human Identity Work has long played a crucial role in shaping human identity, purpose, and societal belonging. It provides a sense of structure, accomplishment, and contribution, contributing to our sense of self-worth and place in the world. Beyond Economic Necessity: While work has traditionally been seen as a means to earn a living, it also serves as a platform for self-expression, social interaction, and personal growth. It allows individuals to develop skills, build relationships, and contribute to society in meaningful ways. The Need for Reframing: In a world where traditional employment models are being disrupted by automation, it becomes essential to reframe our understanding of work and its role in human life. We need to move beyond a narrow focus on economic productivity and embrace a broader perspective that recognizes the multifaceted value of work. Rethinking Labor and Human Contribution: Beyond Traditional Employment The rise of automation necessitates a fundamental re-evaluation of our understanding of labor and human contribution. The traditional model of employment, based on a fixed job and a set of tasks, may no longer be the primary source of meaning and value in a world where machines are increasingly capable of performing many tasks. The Rise of the "Gig Economy" and Beyond: The emergence of the "gig economy," with its emphasis on flexible work arrangements and independent contracting, is a testament to the evolving nature of work. However, this shift also raises concerns about job security, income stability, and the potential for exploitation. A New Social Contract: We need to develop a new social contract that recognizes the changing nature of work and ensures that all individuals have access to opportunities for meaningful contribution, regardless of their employment status. This may involve exploring alternative models of work, such as universal basic income, social safety nets, and educational programs that equip individuals with the skills needed to thrive in a rapidly evolving economy. Ethical Considerations As machines become increasingly integrated into the workplace, ethical considerations become paramount. Fairness and Equity: It is crucial to ensure that the benefits of automation are shared fairly among all members of society. This includes addressing concerns about job displacement, ensuring access to education and training for workers in a changing job market, and promoting policies that support a just and equitable transition to a more automated future. The Purpose of Work: In a world where machines perform most tasks, it is essential to consider the purpose of work beyond mere economic necessity. Work should contribute to human flourishing, promote social well-being, and create a more just and sustainable world. Conclusion The ongoing evolution of work in a machine-dominated world presents a profound reexamination of the intrinsic value of labor. As automation increasingly encroaches upon tasks traditionally entrusted to humans, questions arise about the essence of 'work' in a landscape where machines reign supreme. The historical significance of work, deeply intertwined with human identity, purpose, and fulfillment as expounded by philosophical and religious doctrines, faces a formidable challenge in the era of automation. While Aristotle's vision of *eudaimonia* through virtuous labor, the Judeo-Christian tradition's regard for work as a divine gift, and the Protestant Work Ethic's emphasis on diligence and thrift have long underscored work's inherent value, the advent of automation casts a shadow of doubt on these conventional beliefs. The escalating capabilities of machines to outperform humans in various tasks prompt a reconsideration of the role of human labor, with the looming threat of job displacement and the redefinition of work stirring concerns about the future of employment. As the gig economy emerges, characterized by flexible work arrangements and independent contracting, questions of job security, income stability, and the specter of exploitation come to the fore, challenging the traditional employment model. In response, a new social contract is imperative, one that acknowledges the shifting work landscape and ensures inclusivity and meaningful contribution for all individuals, irrespective of their employment status. This paradigm shift calls for a comprehensive approach, blending government initiatives to invest in education and retraining, corporate responsibility to support displaced workers, and individual adaptation through embracing lifelong learning. In navigating the uncertainties of automation, fostering an equitable and just social contract becomes paramount to sculpting a future where technology serves humanity rather than subjugating it. Automation, Economic Instability, and the Social Contract Social Contract Theory The philosophical notion of the “social contract” is a foundational concept in political philosophy that explores the legitimacy of authority and the moral obligations of individuals within a society. It posits that individuals consent, either explicitly or implicitly, to surrender some of their freedoms and submit to the authority of a governing body in exchange for protection of their remaining rights and maintenance of social order. The relevance of social contract in a society where automation leads to economic inequality is increasingly significant as technological advancements reshape labor markets and economic structures. The social contract theory, which posits that individuals consent to form societies and governments in exchange for protection and the benefits of collective living, must be reexamined in light of the challenges posed by automation. Obligations of Governments and Corporations The ethical and societal implications of automation demand a re-evaluation of the responsibilities of both governments and corporations. Government's Role: Governments have a fundamental obligation to ensure the well-being of their citizens, including those displaced by automation. This obligation extends beyond providing basic necessities like food and shelter. Governments must actively invest in: 1. Retraining Programs: Providing opportunities for displaced workers to acquire new skills and adapt to the changing job market. 2. Job Creation Initiatives: Supporting the development of new industries and sectors that offer employment opportunities for those who have lost their jobs due to automation. 3. Social Safety Nets: Strengthening existing social safety nets, such as unemployment insurance, to provide a temporary financial cushion for displaced workers. Corporate Responsibility Corporations, as the primary beneficiaries of automation, also bear a significant responsibility to mitigate its negative impacts on workers. They should: Invest in Reskilling: Provide training and development programs to help employees adapt to new roles or transition to different areas within the company. Offer Severance Packages: Provide generous severance packages to displaced workers to help them bridge the gap until they find new employment. Promote Transparency: Be transparent about their automation plans and engage in open dialogue with employees about the potential impact on their jobs. Arguments in Favor: Economic Security: UBI could provide a safety net for those who are unable to find work due to automation, ensuring basic needs are met. Increased Consumer Spending: UBI could boost consumer spending, stimulating economic growth and creating new opportunities for businesses. Freedom and Flexibility: UBI could free individuals from the pressure of having to work solely for economic survival, allowing them to pursue education, entrepreneurial ventures, or other activities that contribute to their well-being. Arguments Against: Disincentive to Work: Critics argue that UBI could disincentivize work and lead to a decline in productivity. High Costs: Implementing UBI would require significant government funding, potentially leading to higher taxes or cuts to other essential programs. Potential for Abuse: There are concerns about the potential for UBI to be misused or abused, leading to a decrease in the value of work and a decline in social responsibility. Conclusion The social contract, as a foundational principle of political philosophy, must be reimagined in the face of automation-driven economic inequality. The traditional understanding of the social contract, where individuals surrender some freedoms in exchange for protection and social order, needs to be updated to address the unique challenges posed by automation. This necessitates a renewed focus on the obligations of both governments and corporations to ensure the well-being of citizens, particularly those displaced by automation. Governments must prioritize investing in retraining programs, job creation initiatives, and robust social safety nets to mitigate the negative impacts of automation on the workforce. Corporations, as the primary beneficiaries of automation, must recognize their ethical responsibility to support displaced workers through reskilling programs, generous severance packages, and transparent communication about their automation plans. While Universal Basic Income (UBI) presents a potentially viable solution, its feasibility and potential drawbacks require careful consideration. Ultimately, a multifaceted approach that combines government intervention, corporate responsibility, and individual adaptation is crucial to ensure a just and equitable transition to a future shaped by automation. This requires a renewed commitment to the social contract, one that prioritizes the well-being of all citizens and fosters a society where technology serves humanity, rather than the other way around. Automation and the Role of Technology in Creating an Equitable Society In recent years, society has increasingly embraced automation and technological advancements. However, while these hold great potential, challenges also arise especially in ensuring that these innovations foster greater equity rather than deepen existing inequalities. The Need for Inclusive Design Research emphasizes the need for digital technologies to be developed and used to advance social justice, as they frequently reflect and perpetuate societal inequities. Therefore, it is crucial to engage in inclusive design processes that involve diverse voices, establish ethical guidelines for artificial intelligence (AI) and automation, and prioritize social good over corporate interests. Through an emphasis on ethical implementation, inclusive design, and community engagement, technology can be effectively utilized as a tool for social justice. To foster greater equity through automation and technological advancements, it is essential to prioritize inclusive design, establish ethical implementation, and community engagement for the development and deployment of automation technologies. This approach can help ensure that technology serves as a tool for social justice rather than a catalyst for inequality. It involves three key components such as 1. Community Involvement  The validation of inclusive design and centering the voices of marginalized communities is essential for advancing equity through technology. Engaging different interests give more accents to designing and organizing the environments as would the voices of those with a vested interest. Instead of forcing solutions, it can move to the space for co-creation ensuring relevance and value for both parties. Studies show that civic design requires collaboration and that community contribution makes for better and longer lasting technology initiatives. 2. Ethical Data Practices There is a need to be cautious in collecting and using data so that biases are not entrenched. By adopting intersectional analyses, a person can also make choices to ensure technology contributes to better outcomes for more people. Studies suggest that many data-driven technologies are prone to inheriting and exasperating social biases, which results in discriminatory practices against vulnerable populations. For starters, one must implement ethical data practices that put fairness, accountability, and transparency front and center. 3. Transparency and Accountability The process should be transparent and users should be aware of how those decisions are being made by the automation systems. Providing this transparency can help ameliorate ethical issues about bias and unfairness in automatic decision making. Second, accountability for outputs : Automated Systems must be held responsible for the products of what is produced. This is not unlike the need for frameworks to ensure that organizations are held accountable for how their technologies affect workers and society more broadly. Promoting Social Justice through Technology Promoting social justice through technology involves the intentional design and implementation of justice-focused technologies, frameworks for ethical deployment, and educational initiatives that empower future designers. Justice-focused Technologies These are tools intentionally designed to incorporate anti-oppression strategies throughout their lifecycle. This requires not only thoughtful design but also ongoing evaluation to mitigate any potential harms caused by technology. Educational Initiatives Training programs in critical teaching methods can equip future designers with the skills necessary to create socially just technologies. By focusing on diverse perspectives and  experiences, these programs can help shift the narrative around technology from one of profit to one of empowerment. Ethical Guidelines for AI and Automation The rapid advancement of automation and artificial intelligence (AI) has raised significant ethical concerns that need to be addressed to ensure these technologies are developed and used responsibly. It becomes apparent that creating ethical guidelines for AI and automation is essential for prioritizing social good over corporate interests. Achieving this goal requires a collaborative effort among multiple stakeholders—including technologists, ethicists, community representatives, and policymakers. Establishing collaborative frameworks will allow stakeholders to work together to create guidelines that reflect a commitment to social justice. This collaboration should focus on transparency in AI decision-making processes and accountability for outcomes, ensuring that technology benefits all members of society. Furthermore, regulatory oversight plays a crucial role in monitoring the impact of AI technologies on society. Governments and regulatory bodies must enforce regulations that prevent discrimination while promoting equitable access to technological benefits. Finally, it’s important to recognize that ethical guidelines should not be static; they must evolve alongside technological advancements and societal changes. Regular assessments will help identify areas where technologies may inadvertently contribute to inequality, allowing for timely interventions. By integrating these principles into the development and implementation of automation and technology, society can work towards creating a more equitable future where all individuals have access to the benefits of technological progress. Through collaboration, continuous evaluation, and a commitment to social justice, we can ensure that technology serves as a force for good in our communities. The Impact of Automation on Employment in the Philippines The impact of automation on employment in the Philippines is a complex and multifaceted issue. While automation poses significant risks to jobs in various sectors, it also presents opportunities for growth and job creation if addressed proactively. Job Displacement and Vulnerable Sectors According to the McKinsey Global Institute, approximately 18.2 million jobs in the Philippines could potentially be automated, with sectors such as agriculture (6 million jobs), retail (3.4 million jobs), and manufacturing (2.4 million jobs) being particularly vulnerable. The manufacturing sector has the highest proportion of automatable work at 61%. However, a study utilizing data from the World Bank's Enterprise Survey found that firms which adopted partial or full automation were more likely to hire additional workers than reduce their workforce, suggesting a net positive employment impact in the short run, particularly in the manufacturing industry. In contrast, firms in the service industry were more likely to experience net job losses as they automated operations. Opportunities in the BPO Industry The Philippines' Business Process Outsourcing (BPO) industry could emerge as a beneficiary of job cuts overseas due to artificial intelligence (AI). Industry experts suggest that outsourcing might actually accelerate hand-in-hand with the AI trend, as most reports about job losses are written from the perspective of Western countries, which helps drive outsourcing to countries like the Philippines. However, to capitalize on these opportunities, the Philippine government and industry players must work together to prepare for the impact of AI and ensure that workers are equipped with the necessary skills to adapt to the changing landscape. Investing in education and training programs that focus on developing skills relevant to emerging industries is crucial. Policy Recommendations and Challenges To navigate the challenges posed by automation, the Philippine government should prioritize investments in education, implement robust social safety nets for displaced workers, and collaborate closely with industry leaders to align training programs with labor market needs. However, the country faces challenges such as a dearth of talent, with the Philippines ranking 52nd out of 67 countries in terms of readiness to adopt AI, according to the IMD World Competitiveness Center. In conclusion, while automation poses significant risks to employment in the Philippines, it also presents opportunities for growth and job creation in certain sectors. By proactively addressing these challenges through education, policy interventions, and collaboration between stakeholders, the country can harness the benefits of automation while minimizing its negative impacts on workers.  REFERENCES Autor, D. H. (2015). Why are there still so many jobs? 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