Evidence That Robots Are Winning the Race for American Jobs (nytimes.com)

Who is winning the race for jobs between robots and humans? Last year, two leading economists described a future in which humans come out ahead. But now they've declared a different winner: the robots. From a report on the New York Times: The industry most affected by automation is manufacturing. For every robot per thousand workers, up to six workers lost their jobs and wages fell by as much as three-fourths of a percent, according to a new paper by the economists, Daron Acemoglu of M.I.T. and Pascual Restrepo of Boston University. It appears to be the first study to quantify large, direct, negative effects of robots. The paper is all the more significant because the researchers, whose work is highly regarded in their field, had been more sanguine about the effect of technology on jobs. In a paper last year, they said it was likely that increased automation would create new, better jobs, so employment and wages would eventually return to their previous levels. Just as cranes replaced dockworkers but created related jobs for engineers and financiers, the theory goes, new technology has created new jobs for software developers and data analysts. From a report on The Verge, which looks at another finding in the study: They found that each new robot added to the workforce meant the loss of between 3 and 5.6 jobs in the local commuting area. Meanwhile, for each new robot added per 1,000 workers, wages in the surrounding area would fall between 0.25 and 0.5 percent.

Comments

Makes sense

[Baron_Yam]

Few places investigate robots until it's easier than hiring meat, which usually means they're thinking of an 8 hour shift.

Once they get a robot and realize that (excepting maintenance) it can go 24/7 and doesn't need vacation, sick time, it turns out robots are around 6.5x more productive than a human (at a task a robot can currently perform). The fact that they don't need benefits either makes them even more cost effective.

And that's just uptime. Robots - for a lot of tasks, at least - have the capacity to be much, much faster than humans, with a much lower error rate if the task is sufficiently standardized.

Re:It's just smart business.

[MightyMartian]

Well, the reason this is about Trump is because he has created what is clearly a set of unachievable expectations. Health care is only the first of many failures; where his flights of rhetorical fancy hit cold hard reality. When it comes to manufacturing, even a repatriation of manufacturing capacity is simply not going to deliver the expected significant uptick in employment. In fact, I'd go further as to argue that with increased automation, it makes less sense to locate manufacturing thousands of miles over an ocean from the market, and I imagine what will eventually happen is a good deal of manufacturing happening closer to major markets to bring down distribution costs, but you're not really going to see any significant increase in jobs.

Trump promised a lot of uneasy Rust Belters that the the good times would return, that China and Mexico would be forced to hand back all those jobs, when in fact the only reason many of the jobs ended up in places like China and Mexico was simply due to costs, and as automation increases, not even the lower wages in these countries will be enough to keep manufacturing there. In five or ten years, you'll see a lot of angry and frightened workers in the rust belts of India, China, Mexico and other countries who had been able to supply cheap labor.