It is true that technological advancements have benefited individuals and uplifted economies across the globe but at the same time, the labor market is severely affected by increasing automation.
According to the ILO findings, India’s unemployment rate remained at 3.5 percent in 2014 and 2015 but will decrease only slightly to 3.4 percent in 2016 and 2017. However, the number of people seeking jobs will increase to 17.6 million people in 2017 from 17.5 million people in both 2015 and 2016.
In the era of artificial intelligence, workers are rapidly replaced by robots. Jobs are disappearing faster than they are being created.
TV Mohandas Pai, the chairman of Manipal Global Education and former CFO of Infosys, said today that about 20 crore middle-class young people will be jobless by 2025 due to increasing automation and improvement in technology.
According to Pai, 10 percent minimum of incremental jobs that are created by the IT sector will disappear in the coming years. It means every year out of 2 to 2.5 lakh new job opportunities, 25,000-50,000 jobs will disappear.
By 2025, there will be 200 million young people in the age group of 21-41 with no jobs or less jobs and no body knows what to do with these people. Government policy does not know what to do as they don’t have proper data — Pai told PTI
The trend of technology replacing virtually every worker also destroys the model of capitalism. Capitalism assumes that economic production chiefly employs people, not machines.
Pointing to increasing number of skilled unemployed people, Pai said only 2 to 2.5 lakh IT engineers, out of the total 6.5 lakh who come to the market every year, get jobs in their chosen field.
Many of the engineers who come out of bad colleges… there are good jobs like Ola and Uber waiting for them. I am not joking. In Bengaluru, many of the software engineers are giving up their jobs and driving Ola and Uber and making more money. It’s much more lucrative. Why work for 14 hours a day (in an IT company) and earn (only) Rs 3.5 lakh (per annum), when you can earn Rs 6-7 lakh (per year) driving a car?” he said.