During the most recent recovery from an economic recession, an interesting phenomenon occurred. While the unemployment rate stayed about the same, the economy rebounded, in terms of gross domestic product (GDP), and hours worked per employee. There is one reasonable explanation for the so-called jobless recovery of 2009: automation and robotics.
Automation and robotics can efficiently do the work of many different types of jobs. For example, middle-wage blue-collar jobs in manufacturing, warehousing, and transportation are quickly becoming automated (Sui & Jaimovich). In addition, many traditionally middle-wage white-collar jobs such as bank tellers and administrative assistants are being phased out in favor of the less costly, more-efficient ATMs, as well as the speech-enabled Apple’s Siri, and now, Microsoft’s Cortana, as well (Sui & Jaimovich).
Furthermore, polarization after economic downturns, such as the most recent economic recession, is becoming more pronounced (Sui & Jaimovich). That is, as the middle part of the occupation curve becomes hollowed out – or vanishes – the lower and upper parts of the distribution increases (Sui & Jaimovich). Thus, it is clear that menial jobs are staying the same (or increasing), while higher-wage earners such as executives are experiencing pay increases (Sui & Jaimovich). These jobs are, in essence, unaffected by the profound changes created by automation and robotics in the labor force.
Finally, it does not require a crystal ball to foresee that automation and robotics technology will eliminate many more occupations in the future. The technological revolution is well underway, and no laborer will remain untouched by its exponential change, as it cascades through society. As recessions happen in the future, the cause of their jobless recoveries may be a much more evident trending factor.
Works Cited
Sui, Henry, & Jaimovich, Nir. Jobless Recoveries and the Disappearance of Routine Occupations. Vox. 06 Nov, 2012. Web. 12 Jun 2016.
