The Effects Of Job Automation On The Economy
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1 2 3 4 5
IEEE P/D<3>, <2009>
The Effects of Job Automation on the Economy Prepared by: Gordon R. Bland Jr. University of Old Dominion
6 7 8 9 10
Computer Science March 4, 2009
11 12 13 14 15 16Copyright © <2009> by the Institute of Electrical and Electronics Engineers, Inc. 17Three Park Avenue 18New York, New York 10016-5997, USA 19All rights reserved. 20This document is an unapproved draft of a proposed IEEE Standard. As such, this document is subject to 21change. USE AT YOUR OWN RISK! Because this is an unapproved draft, this document must not be 22utilized for any conformance/compliance purposes. Permission is hereby granted for IEEE Standards 23Committee participants to reproduce this document for purposes of international standardization 24consideration. Prior to adoption of this document, in whole or in part, by another standards development 25organization, permission must first be obtained from the IEEE Standards Activities Department 26([email protected]). Other entities seeking permission to reproduce this document, in whole or in part, must 27also obtain permission from the IEEE Standards Activities Department. 28IEEE Standards Activities Department 29445 Hoes Lane 30Piscataway, NJ 08854, USA 31
2 3 4
Copyright © <2009> IEEE. All rights reserved. This is an unapproved IEEE Standards Draft, subject to change.
5
IEEE P/D<3>, <2009>
1This page is left blank intentionally.
6 7 8
Copyright © <2009> IEEE. All rights reserved. This is an unapproved IEEE Standards Draft, subject to change.
9
IEEE P/D<3>, <2009>
1Introduction 2 This introduction is not part of IEEE P/D<3>.
3Notice to users 4Laws and regulations 5Users of these documents should consult all applicable laws and regulations. Compliance with the 6provisions of this standard does not imply compliance to any applicable regulatory requirements. 7Implementers of the standard are responsible for observing or referring to the applicable regulatory 8requirements. IEEE does not, by the publication of its standards, intend to urge action that is not in 9compliance with applicable laws, and these documents may not be construed as doing so.
10Copyrights 11This document is copyrighted by the IEEE. It is made available for a wide variety of both public and 12private uses. These include both use, by reference, in laws and regulations, and use in private self13regulation, standardization, and the promotion of engineering practices and methods. By making this 14document available for use and adoption by public authorities and private users, the IEEE does not waive 15any rights in copyright to this document.
16Updating of IEEE documents 17Users of IEEE standards should be aware that these documents may be superseded at any time by the 18issuance of new editions or may be amended from time to time through the issuance of amendments, 19corrigenda, or errata. An official IEEE document at any point in time consists of the current edition of the 20document together with any amendments, corrigenda, or errata then in effect. In order to determine whether 21a given document is the current edition and whether it has been amended through the issuance of 22amendments, corrigenda, or errata, visit the IEEE Standards Association web site at 23http://ieeexplore.ieee.org/xpl/standards.jsp, or contact the IEEE at the address listed previously. 24For more information about the IEEE Standards Association or the IEEE standards development process, 25visit the IEEE-SA web site at http://standards.ieee.org.
26Errata 27Errata, if any, for this and all other standards can be accessed at the following URL: 28http://standards.ieee.org/reading/ieee/updates/errata/index.html. Users are encouraged to check this URL 29for errata periodically. 30
10 11 12 13
iv Copyright © <2009> IEEE. All rights reserved. This is an unapproved IEEE Standards Draft, subject to change.
14
IEEE P/D<3>, <2009>
1Interpretations 2Current interpretations can be accessed at the following URL: http://standards.ieee.org/reading/ieee/interp/ 3index.html.
4Patents 5Attention is called to the possibility that implementation of this may 6require use of subject matter covered by patent rights. By publication of this, no position is taken with respect to the existence or validity of any patent rights in connection 8therewith. The IEEE is not responsible for identifying Essential Patent Claims for which a license may be 9required, for conducting inquiries into the legal validity or scope of Patents Claims or determining whether 10any licensing terms or conditions provided in connection with submission of a Letter of Assurance, if any, 11or in any licensing agreements are reasonable or non-discriminatory. Users of this are expressly advised that determination of the validity of any patent rights, and the risk of 13infringement of such rights, is entirely their own responsibility. Further information may be obtained from 14the IEEE Standards Association.
15Participants 16At the time this draft was completed, the <Working Group Name> 17Working Group had the following membership: 18
, Chair
19
, Vice Chair
20 21Gordon Bland 22Participant2 23Participant3
30
24Participant4 25Participant5 26Participant6
27Participant7 28Participant8 29Participant9
31The following members of the [individual/entity] balloting committee voted on this. Balloters may have voted for approval, disapproval, or abstention. 33 34 (to be supplied by IEEE)
15 16 17 18
v Copyright © <2009> IEEE. All rights reserved. This is an unapproved IEEE Standards Draft, subject to change.
19
IEEE P/D<3>, <2009>
1 21. Job Automation Economic Effects.............................................................................................................1 3 1.1 Negative Effects..................................................................................................................................1
4
5
6
1.1.1 Job Destruction.................................................................................................1
1.2 Positive Effects....................................................................................................................................2
1.2.1 Job Creation......................................................................................................2
72. Ethics of Automation..................................................................................................................................2 8 2.1 Profit....................................................................................................................................................2 9 2.2 Morals..................................................................................................................................................2 103. Annex B......................................................................................................................................................3
20 21 22 23
vi Copyright © <2009> IEEE. All rights reserved. This is an unapproved IEEE Standards Draft, subject to change.
24
The Effects of Job Automation on the 2 Economy 1
31.Job Automation Economic Effects 4With the increase of technology use in the workplace, humans have become obsolete for some jobs. 5Modern day automation has completely eliminated some production jobs whilst it has created jobs in new 6fields. With the freedom from mundane tasks because of automation, more creative tasks and jobs opened 7up. The jobs that are lost to machines then create new jobs for workers. Where a manual task was lost to a 8machine, jobs in design, manufacturing, and maintenance of the new machine may be created.
91.1 Negative Effects 10Computers along with automation have caused a decrease in jobs that once required many workers. Factory 11lines have now replaced workers with robots that are more efficient and less costly. What once required 12hundreds of workers to produce, automated factories may employee only a handful of workers to produce 13the products. These workers no longer produce the product, but instead they manage the machines and 14monitor their production. Due to the destruction of some jobs and the evolution of others, a change in 15required skills for workers is becoming more and more important. At one time, a secretary may have been 16required to write in shorthand, whilst now, secretaries are typically required to type on a computer at an 17established minimum speed. 181.1.1Job Destruction 19As early as the 1800s, jobs have been lost to machines. A group of people known as the Luddites destroyed 20weaving looms in fear of loss of jobs in textile factories [B1]. Once again in the 1950s and 1960s, machines 21scared the human workforce. 22In the 1950s and 1960s, automation was once again attacked. John F. Kennedy along with labor groups 23claimed the increasing unemployment was a result of the more efficient machines taking jobs of workers 24[B1]. A quote from a Times article in 1961 read, “Throughout industry, the trend has been to bigger 25production with a smaller work force. In the highly automated chemical industry, the number of production 26jobs has fallen 3% since 1956 while output has soared 27%,” [B2]. In Illinois, 315,000 were unemployed in 271961. According to Robert Johnson, the State Labor Director during that year, most of the unemployed 28were resultants of automation. [B2] Pennsylvania’s Congressman Elmer J. Holland said, “One of the 29greatest problems with automation is not the worker who is fired, but the worker who is not hired,” [B2]. 301.1.1.1Outsourcing of Jobs 31In more recent times, unemployment has been blamed on outsourcing of jobs; however, some disagree. 32During a Global Media Summit sponsored by Rockwell Automation (www.rockwellautomation.com), 33Milwaukee, Dan Miklovic said, “Recent studies show that manufacturing jobs are declining everywhere,” 34[B3]. According to an article by Wes Iversen in 2004, U.S. manufacturing jobs declined by more than 11 35percent from 1994-2004.
25 26 27 28
1 Copyright © <2009> IEEE. All rights reserved. This is an unapproved IEEE Standards Draft, subject to change.
29
11.2Positive Effects 2Computers mark a point of economic stability where tasks that are seen as a burden for humans have been 3eliminated. This has allowed more time for creative and intellectual thinking, which is not a necessity for 4life. New industries have been created for the production of computers and the machines that automate 5tasks. In factories, robots have replaced the human worker that can make mistakes. The cheaper robot saves 6companies money as well as produces higher quality products more efficiently. 71.2.1Job Creation 8Jobs for computer and machine repair have been created from the widespread use in industry. Computer 9repairmen have replaced the once needed job of typewriter repairmen. Factories now employee workers to 10repair machines that produce products as well as people to monitor the machines in various aspects of 11production. In 1961, it was recognized that the loss of jobs to automation would result in an increase in the 12service industry [B2]. 13While many jobs have been lost to machines, 309.9 million from 1993-2002, 327.7 million new jobs were 14created during that same time period [B1]. While that gave a net increase of 17.8 million jobs, during 2004 15to 2014, the BLS projects that there will be another net increase of 18.9 million jobs with roughly half 16being seasonal jobs [B1]. 17As seen from statistics, it is apparent that jobs are continually created in place of ones lost as a part of an 18ever-evolving need for jobs due to new skill sets required from new technology. It is easy to attack 19technology when it comes to unemployment as economists lack imagination to see the new jobs that will be 20created [B1]. Technology when utilized correctly simply alters jobs and the paths they take. An example of 21this is during World War II, rooms full of workers sat at typewriters creating letters for government 22purposes. With computers, a few workers can replace what was once a large workforce, whilst new jobs are 23created to manufacture the computers, printers, and database servers. Workers are also required to fix these 24machines.
252.Ethics of Automation 26Computers were first created to make tasks easier. Complex mathematical equations were made simpler 27through the use of algorithms based on Boolean algebra, whilst mundane tasks of filing information could 28be automated. No longer was a person required to have tangible materials to work with such as files, but 29instead databases allowed massive amounts of information to be stored in a smaller footprint.
302.1Profit 31Computers were originally created to make tasks simpler. In doing so, they proved to be more efficient and 32mistakes were less. Because of this, companies have discovered that automation can create a better product 33with fewer defects as the human element is absent and production time is shortened. With more products 34being produced with fewer workers, profit margins increased. From a company perspective, it was a no 35brainer to move towards automation and remove the weak link—humans.
362.2Morals 37The drawback to automating companies is the removal of human workers from their jobs. Being human, 38morals come into play when a worker loses a job and they may not be able to support their children 30 2 31 32 33
Copyright © <2009> IEEE. All rights reserved. This is an unapproved IEEE Standards Draft, subject to change.
34
1anymore. A “happy medium” must be reached sometimes in order to increase profit margins without 2ruining the worker’s lives.
33.Annex B 4[B1] Baase, Sara. Gift of Fire. Upper Saddle River: Prentice Hall PTR, 2007. 5
Chapter 6: Work
6[B2] "THE AUTOMATION JOBLESS - TIME." TIME.com. 24 Feb. 1961. 08 Feb. 2009 7
.
8[B3] "Outsourcing Not the Culprit in Manufacturing Job Loss | News |." Automation World. Jan. 2004. 08 9
35 36 37 38
Feb. 2009.
3 Copyright © <2009> IEEE. All rights reserved. This is an unapproved IEEE Standards Draft, subject to change.
1 2 3 4 5
IEEE P
The Effects of Job Automation on the Economy Prepared by: Gordon R. Bland Jr. University of Old Dominion
6 7 8 9 10
Computer Science March 4, 2009
11 12 13 14 15 16Copyright © <2009> by the Institute of Electrical and Electronics Engineers, Inc. 17Three Park Avenue 18New York, New York 10016-5997, USA 19All rights reserved. 20This document is an unapproved draft of a proposed IEEE Standard. As such, this document is subject to 21change. USE AT YOUR OWN RISK! Because this is an unapproved draft, this document must not be 22utilized for any conformance/compliance purposes. Permission is hereby granted for IEEE Standards 23Committee participants to reproduce this document for purposes of international standardization 24consideration. Prior to adoption of this document, in whole or in part, by another standards development 25organization, permission must first be obtained from the IEEE Standards Activities Department 26([email protected]). Other entities seeking permission to reproduce this document, in whole or in part, must 27also obtain permission from the IEEE Standards Activities Department. 28IEEE Standards Activities Department 29445 Hoes Lane 30Piscataway, NJ 08854, USA 31
2 3 4
Copyright © <2009> IEEE. All rights reserved. This is an unapproved IEEE Standards Draft, subject to change.
5
IEEE P
1This page is left blank intentionally.
6 7 8
Copyright © <2009> IEEE. All rights reserved. This is an unapproved IEEE Standards Draft, subject to change.
9
IEEE P
1Introduction 2 This introduction is not part of IEEE P
3Notice to users 4Laws and regulations 5Users of these documents should consult all applicable laws and regulations. Compliance with the 6provisions of this standard does not imply compliance to any applicable regulatory requirements. 7Implementers of the standard are responsible for observing or referring to the applicable regulatory 8requirements. IEEE does not, by the publication of its standards, intend to urge action that is not in 9compliance with applicable laws, and these documents may not be construed as doing so.
10Copyrights 11This document is copyrighted by the IEEE. It is made available for a wide variety of both public and 12private uses. These include both use, by reference, in laws and regulations, and use in private self13regulation, standardization, and the promotion of engineering practices and methods. By making this 14document available for use and adoption by public authorities and private users, the IEEE does not waive 15any rights in copyright to this document.
16Updating of IEEE documents 17Users of IEEE standards should be aware that these documents may be superseded at any time by the 18issuance of new editions or may be amended from time to time through the issuance of amendments, 19corrigenda, or errata. An official IEEE document at any point in time consists of the current edition of the 20document together with any amendments, corrigenda, or errata then in effect. In order to determine whether 21a given document is the current edition and whether it has been amended through the issuance of 22amendments, corrigenda, or errata, visit the IEEE Standards Association web site at 23http://ieeexplore.ieee.org/xpl/standards.jsp, or contact the IEEE at the address listed previously. 24For more information about the IEEE Standards Association or the IEEE standards development process, 25visit the IEEE-SA web site at http://standards.ieee.org.
26Errata 27Errata, if any, for this and all other standards can be accessed at the following URL: 28http://standards.ieee.org/reading/ieee/updates/errata/index.html. Users are encouraged to check this URL 29for errata periodically. 30
10 11 12 13
iv Copyright © <2009> IEEE. All rights reserved. This is an unapproved IEEE Standards Draft, subject to change.
14
IEEE P
1Interpretations 2Current interpretations can be accessed at the following URL: http://standards.ieee.org/reading/ieee/interp/ 3index.html.
4Patents 5Attention is called to the possibility that implementation of this
15Participants 16At the time this draft
19
20 21Gordon Bland 22Participant2 23Participant3
30
24Participant4 25Participant5 26Participant6
27Participant7 28Participant8 29Participant9
31The following members of the [individual/entity] balloting committee voted on this
15 16 17 18
v Copyright © <2009> IEEE. All rights reserved. This is an unapproved IEEE Standards Draft, subject to change.
19
IEEE P
1 21. Job Automation Economic Effects.............................................................................................................1 3 1.1 Negative Effects..................................................................................................................................1
4
5
6
1.1.1 Job Destruction.................................................................................................1
1.2 Positive Effects....................................................................................................................................2
1.2.1 Job Creation......................................................................................................2
72. Ethics of Automation..................................................................................................................................2 8 2.1 Profit....................................................................................................................................................2 9 2.2 Morals..................................................................................................................................................2 103. Annex B......................................................................................................................................................3
20 21 22 23
vi Copyright © <2009> IEEE. All rights reserved. This is an unapproved IEEE Standards Draft, subject to change.
24
The Effects of Job Automation on the 2 Economy 1
31.Job Automation Economic Effects 4With the increase of technology use in the workplace, humans have become obsolete for some jobs. 5Modern day automation has completely eliminated some production jobs whilst it has created jobs in new 6fields. With the freedom from mundane tasks because of automation, more creative tasks and jobs opened 7up. The jobs that are lost to machines then create new jobs for workers. Where a manual task was lost to a 8machine, jobs in design, manufacturing, and maintenance of the new machine may be created.
91.1 Negative Effects 10Computers along with automation have caused a decrease in jobs that once required many workers. Factory 11lines have now replaced workers with robots that are more efficient and less costly. What once required 12hundreds of workers to produce, automated factories may employee only a handful of workers to produce 13the products. These workers no longer produce the product, but instead they manage the machines and 14monitor their production. Due to the destruction of some jobs and the evolution of others, a change in 15required skills for workers is becoming more and more important. At one time, a secretary may have been 16required to write in shorthand, whilst now, secretaries are typically required to type on a computer at an 17established minimum speed. 181.1.1Job Destruction 19As early as the 1800s, jobs have been lost to machines. A group of people known as the Luddites destroyed 20weaving looms in fear of loss of jobs in textile factories [B1]. Once again in the 1950s and 1960s, machines 21scared the human workforce. 22In the 1950s and 1960s, automation was once again attacked. John F. Kennedy along with labor groups 23claimed the increasing unemployment was a result of the more efficient machines taking jobs of workers 24[B1]. A quote from a Times article in 1961 read, “Throughout industry, the trend has been to bigger 25production with a smaller work force. In the highly automated chemical industry, the number of production 26jobs has fallen 3% since 1956 while output has soared 27%,” [B2]. In Illinois, 315,000 were unemployed in 271961. According to Robert Johnson, the State Labor Director during that year, most of the unemployed 28were resultants of automation. [B2] Pennsylvania’s Congressman Elmer J. Holland said, “One of the 29greatest problems with automation is not the worker who is fired, but the worker who is not hired,” [B2]. 301.1.1.1Outsourcing of Jobs 31In more recent times, unemployment has been blamed on outsourcing of jobs; however, some disagree. 32During a Global Media Summit sponsored by Rockwell Automation (www.rockwellautomation.com), 33Milwaukee, Dan Miklovic said, “Recent studies show that manufacturing jobs are declining everywhere,” 34[B3]. According to an article by Wes Iversen in 2004, U.S. manufacturing jobs declined by more than 11 35percent from 1994-2004.
25 26 27 28
1 Copyright © <2009> IEEE. All rights reserved. This is an unapproved IEEE Standards Draft, subject to change.
29
11.2Positive Effects 2Computers mark a point of economic stability where tasks that are seen as a burden for humans have been 3eliminated. This has allowed more time for creative and intellectual thinking, which is not a necessity for 4life. New industries have been created for the production of computers and the machines that automate 5tasks. In factories, robots have replaced the human worker that can make mistakes. The cheaper robot saves 6companies money as well as produces higher quality products more efficiently. 71.2.1Job Creation 8Jobs for computer and machine repair have been created from the widespread use in industry. Computer 9repairmen have replaced the once needed job of typewriter repairmen. Factories now employee workers to 10repair machines that produce products as well as people to monitor the machines in various aspects of 11production. In 1961, it was recognized that the loss of jobs to automation would result in an increase in the 12service industry [B2]. 13While many jobs have been lost to machines, 309.9 million from 1993-2002, 327.7 million new jobs were 14created during that same time period [B1]. While that gave a net increase of 17.8 million jobs, during 2004 15to 2014, the BLS projects that there will be another net increase of 18.9 million jobs with roughly half 16being seasonal jobs [B1]. 17As seen from statistics, it is apparent that jobs are continually created in place of ones lost as a part of an 18ever-evolving need for jobs due to new skill sets required from new technology. It is easy to attack 19technology when it comes to unemployment as economists lack imagination to see the new jobs that will be 20created [B1]. Technology when utilized correctly simply alters jobs and the paths they take. An example of 21this is during World War II, rooms full of workers sat at typewriters creating letters for government 22purposes. With computers, a few workers can replace what was once a large workforce, whilst new jobs are 23created to manufacture the computers, printers, and database servers. Workers are also required to fix these 24machines.
252.Ethics of Automation 26Computers were first created to make tasks easier. Complex mathematical equations were made simpler 27through the use of algorithms based on Boolean algebra, whilst mundane tasks of filing information could 28be automated. No longer was a person required to have tangible materials to work with such as files, but 29instead databases allowed massive amounts of information to be stored in a smaller footprint.
302.1Profit 31Computers were originally created to make tasks simpler. In doing so, they proved to be more efficient and 32mistakes were less. Because of this, companies have discovered that automation can create a better product 33with fewer defects as the human element is absent and production time is shortened. With more products 34being produced with fewer workers, profit margins increased. From a company perspective, it was a no 35brainer to move towards automation and remove the weak link—humans.
362.2Morals 37The drawback to automating companies is the removal of human workers from their jobs. Being human, 38morals come into play when a worker loses a job and they may not be able to support their children 30 2 31 32 33
Copyright © <2009> IEEE. All rights reserved. This is an unapproved IEEE Standards Draft, subject to change.
34
1anymore. A “happy medium” must be reached sometimes in order to increase profit margins without 2ruining the worker’s lives.
33.Annex B 4[B1] Baase, Sara. Gift of Fire. Upper Saddle River: Prentice Hall PTR, 2007. 5
Chapter 6: Work
6[B2] "THE AUTOMATION JOBLESS - TIME." TIME.com. 24 Feb. 1961. 08 Feb. 2009 7
8[B3] "Outsourcing Not the Culprit in Manufacturing Job Loss | News |." Automation World. Jan. 2004. 08 9
35 36 37 38
Feb. 2009
3 Copyright © <2009> IEEE. All rights reserved. This is an unapproved IEEE Standards Draft, subject to change.
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