{"id":221014,"date":"2023-01-04T19:03:22","date_gmt":"2023-01-04T13:33:22","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=221014"},"modified":"2023-01-04T19:03:22","modified_gmt":"2023-01-04T13:33:22","slug":"the-jobs-technology-trade-off","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/the-jobs-technology-trade-off\/","title":{"rendered":"The jobs & technology trade-off"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cThe jobs & technology trade-off\u201d <\/strong>published in the Business Standard <\/b>on 4th January 2023<\/b>.<\/p>\n

Syllabus<\/strong>: GS 3 \u2013 Employment.<\/p>\n

Relevance<\/strong>: About job-displacing technology.<\/p>\n

News<\/strong>: The negative impact of technological progress on jobs is often ignored. With India\u2019s G20 presidency, India is expected to bring a human-centric approach to technology.<\/p>\n

How has technological progress impacted the job market worldwide?<\/h5>\n

Since the 1990s in the US and Europe, labour has been continuously replaced by capital due to huge advances in technology, such as the internet and digital technology.<\/p>\n

The pace of technology has accelerated, and the vast mass of workers cannot adjust to the new realities at that speed. Labour-replacing technologies<\/strong> are getting better and better every year. So, every country will face a job crisis in the near future.<\/p>\n

On the other hand, technological improvements reduce the need for skills at the bottom end of the job market<\/strong>. For instance, deadbeat jobs will expand in sectors such as logistics, food and grocery delivery, retail and warehousing, and cab-hailing services.<\/p>\n

How has India’s job market impacted technological progress?<\/h5>\n

In India, the employment elasticity of growth is probably between 0.1 and 0.2 now, which means even if we grow gross domestic product at 10%, jobs will grow just by 1-2%.<\/p>\n

The Centre for Monitoring Indian Economy produces a four-monthly estimate of employment and unemployment the employment figure has stayed stuck in the 395-405 million range.<\/p>\n\n\n\n
Read more: The Great Jobs Hunt \u2013 Too few Indians are seeking work and mostly among those working quality of employment isn\u2019t great<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
Why India is more vulnerable to technological progress associated with job loss?<\/h5>\n

a)<\/strong> India has a lower level of per capita income than the rich world, b)<\/strong> India’s labour market will continue to expand for another 20 years. So, job loss will be more in India, c)<\/strong> Rich nations finance welfare with higher taxation, d)<\/strong> India did not conduct factor markets (labour and land) in 1991, e)<\/strong> Reskill and upskilling the citizens is impossible to do so for a working age population of 900 million.<\/p>\n\n\n\n
Read more: India\u2019s big problem of low-quality employment<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
What can be done to reverse job-displacing technologies?<\/h5>\n

Direct tech innovation towards job-enhancing sectors and disincentivising job-replacing ones<\/strong>: For this to happen a global consensus is required. This is because, a)<\/strong> In an interconnected world, it is not possible for any one country to decide on an automation policy on its own, b)<\/strong> Each country will try to frame a policy for its advantage. For example, China might advocate for job displacement technology due to its own ageing population, c) <\/strong>Jobs crisis is global in nature.<\/p>\n

So, India should under its G20 presidency at least launch a study on how technology impacts jobs. Without a deeper understanding of job-displacing technology, the world can never get our arms around the problem.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cThe jobs & technology trade-off\u201d published in the Business Standard on 4th January 2023. Syllabus: GS 3 \u2013 Employment. Relevance: About job-displacing technology. News: The negative impact of technological progress on jobs is often ignored. With India\u2019s G20 presidency, India is expected to bring a human-centric approach to… Continue reading The jobs & technology trade-off<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,216],"class_list":["post-221014","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1700151243},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/221014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=221014"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/221014\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=221014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=221014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=221014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}