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8 Ways Job Automation Can Affect the Market

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Job automation is currently changing how we work. As companies and businesses continue to use it, there are growing concerns about how it’ll affect the workforce and the labor markets. 

Some industry experts believe that automation will increase productivity and create new jobs, while others worry it’ll displace workers. One thing is certain, no matter the direction things go, it’ll affect the market. Continue reading to discover the various ways job automation will affect the job market. 

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Job Displacement and Workforce Shifts

A report by the McKinsey Global Institute predicts that between 400 and  800 jobs worldwide could be lost to AI and automation by 2030. This will affect jobs that involve tasks that machines can easily perform, such as cashiers and manufacturing line workers. 

At the time, the shift will create new opportunities in areas that use human strength and technology. Check out these guides on Amazon to learn how to keep your job in a competitive market. 


Top Reasons to Upskill | Why Should You Upskill? Video Credit: @invensislearning9099

The shift in workforce and work culture will make the need for new skills critical. As an employee, you’ll need to adapt and acquire new skills relevant to the future of work. This means that employees will need to move away from jobs with standardized and repeatable steps that don’t require human involvement and acquire higher-level analytical and strategic thinking skills.

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Creation of New Jobs

The job loss created by automation will be balanced by the creation of new roles. The new roles will require critical thinking, creativity, and problem-solving skills. A few of the roles will include think AI specialists, data analysts, and cybersecurity professionals.

Decrease of Wages

Besides the loss and creation of jobs, job automation can also impact earnings. For some repetitive tasks, their salaries might drop, while those that require higher cognitive skills and human interaction could rise because of increased labor demand. Check out these guides on Amazon if you’re looking for ways to increase your earnings. 

Rise of Automation in Unexpected Sectors

Rise of the robots: The future of automation: Video Credit: @WION

Automation isn’t going to be limited to the manufacturing industry anymore. Instead, it’ll creep into other areas where it’s less expected. 

The healthcare industry is an example of an unexpected sector where automation is gradually moving in. Currently, AI diagnostics and robotic surgery are becoming popular in the healthcare sector. Another example is the retail industry. AI-powered customer service chatbots and self-checkout lanes are replacing clerks.

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Infrastructure Needs

The more businesses and organizations use job automation, the more the need for sophisticated infrastructure increases. The needed infrastructure is beyond processing powers. For most automation tools to run effectively, physical infrastructure upgrades will be needed. 

Additionally, data infrastructure is also essential. So, there will likely be a need to invest in high-bandwidth networks, secure data centers, and scalable cloud storage solutions. Reliable power and strong cyber security are also important for smooth operations and to prevent disruptions. 

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Ethical Considerations

Ethics of AI: Challenges and Governance: Video Credit: @UNESCO

The increase in the adoption of job automation presents very complex ethical issues that need careful consideration. One main concern is bias in algorithms. 

It’s a known fact that automation AI tools are as good as they’re trained on. This means the AI will perpetuate any biases found in the data it was trained with, which can lead to discriminatory practices in hiring, loan approvals, or even criminal justice.  

Good attention must be paid to the data and algorithm design to overcome biases. This will help ensure fairness and inclusivity in the automated world.

Increase in Demand for Soft Skills

The availability of automation tools doesn’t make soft skills less important. Instead, it increases their demand. For example, if generative AI tools handle repetitive tasks and data analysis, then businesses and organizations will need a human labor force with strong communication and smart decision-making skills to properly explain complex situations and collaborate with fellow workers from different cultures and backgrounds

As a person of African descent, you can acquire soft skills, such as good communication and creativity to avoid being replaced by AI technologies like ChatGPT. Nearly all modern-day businesses and brands need workers with soft skills to help them implement successful workplace automation.

Artificial intelligence, machine learning, industrial robots, and automation tools aren’t here to snatch people’s jobs as many folks may view them. The truth is that these new technologies will not function without errors. This means that humans will need to be available to spot errors and find the best solutions for them. But the impact of automation will surely be felt across all fields and sectors, including government and private sectors. 

Want to learn more about automation? Check out these books on Amazon.  

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Uchenna Agwu
Uchenna Agwu
Hi there! I’m Uchenna Agwu, and I love to write. When I’m not writing, you can usually find me reading books or watching documentaries (I’m a bit of a nerd). But I also like to get out and explore – whether that means going on hikes or checking out new restaurants.


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