Automation and minorities: How is automation affecting minorities’ employment prospects?

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  Quantumrun Foresight
• October 27, 2022

Insight summary

Automation's rise threatens job security for minorities, especially in sectors like manufacturing and logistics that traditionally employ them. This shift towards technology-driven workforces highlights a widening economic disparity and increased unemployment risks for vulnerable communities. Addressing these challenges calls for targeted educational initiatives and policy changes to ensure equal opportunities and adaptability in the evolving employment landscape.

Automation and minorities context

As robots and artificial intelligence (AI) continue to improve at performing labor-intensive tasks, some minority groups might soon find themselves out of work. In particular, blue-collar jobs are being threatened by automation, a sector that tends to employ vulnerable communities. 
The increasing prevalence of automation raises critical concerns about the socioeconomic impact on these communities, requiring proactive measures to ensure their adaptation and resilience in the evolving job market.

As more companies deploy software bots and collaborative robots (cobots), humans are forced to rethink how to remain employable. A 2017 McKinsey report indicated that by 2030, one-third of tasks in the various sectors could be automated. The report noted that some industries are more vulnerable, including blue-collar work in manufacturing and logistics. Most experts agree that all professions will eventually be affected by automation. Nonetheless, because of the increasing industrialization of warehouses and factories, some minorities are facing increased unemployment. 

However, despite automation, some minority groups find it difficult to obtain jobs due to unequal access to education/opportunities and discrimination. And according to the World Economic Forum, AI technology will worsen economic differences along ethnic/racial lines within many countries due to demographic biases. 

Disruptive impact

According to Statistics Canada, Indigenous peoples in Canada have a 14 percent higher chance of being unemployed due to automation. In comparison, the least likely parties affected by automation were populations of Chinese and Korean descent. Meanwhile, a 2019 McKinsey study estimated that a white family has more than ten times the wealth of an African American family. The firm considers this wealth gap is being worsened by automation.

The research indicates that automation could disproportionately and negatively affect African Americans, who are often overrepresented in “support roles” likely to be replaced by machines, such as truck drivers and office clerks. The report highlighted that the employment situation for African Americans may deteriorate dramatically by 2030. In addition, this group is most likely to be established in areas with decreased job opportunities and is geographically removed from future employment growth hotspots. These patterns can further slow down this demographic’s income generation, wealth, and stability if left unaddressed.

Some experts believe government officials must consider how automation can affect different demographics to create labor policies that ensure equality and resiliency. This suggestion is crucial because most political upheavals and populist movements have been rooted in groups feeling abandoned and marginalized. Additionally, if demographic bias in automation is not addressed, nations may experience more political unrest during an age of globalization and immigration.

Implications of automation and minorities

Wider implications of automation and minorities may include: 

• Increased investments in automating warehouse and factory systems which may result in a growing hybrid human-cobot workforce.
• Civil rights groups lobbying for employment opportunities and protection against total automation. These protests might pressure governments to regulate how much automation is allowed in industries.
• An increased wealth gap and inequality in countries that don’t prepare their working population for the integration of automation.
• Governments and companies establishing upskilling programs specifically for minority groups affected by automation.
• More support roles in food preparation, deliveries, and warehouse roles being replaced by automation and robots. This trend can lead to increased unemployment and welfare support costs for numerous governments worldwide.
• Enhanced focus on digital literacy and technical education among minority communities as a countermeasure to job displacement caused by automation.
• Shift in labor demand towards human-centric skills like customer service and care roles, where personal interaction remains crucial.
• Growing reliance on community and local initiatives to provide transitional support and job retraining for minorities affected by automation-driven changes.

Questions to consider

• How might (is) automation be integrated with your workplace?
• How else can automation affect the employment of vulnerable communities?