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TECHNOLOGICAL UNEMPLOYMENT & AUTOMATION 2
Contents
Introduction ......................................................................................................................... 3
Automation ..................................................................................................................... 3
Coca-Cola ....................................................................................................................... 3
Scenario............................................................................................................................... 7
Conclusion .......................................................................................................................... 9
Bibliography ......................................................................................................................11
TECHNOLOGICAL UNEMPLOYMENT & AUTOMATION 3
Introduction
Technological Unemployment
opportunity because of the introduction of machines and automatic service. (Woirol, 1996).
Today global economies are facing a major issue which is “Technological Unemployment”.
machines and automation. Unemployment because of advances in machines and other services
provides redundancy to workers. For example, if shoes are manufactured in machines on a large
scale, then a cobbler can lose its business. (Cesaratto, Serrano, & Stirati, 2003)
Automation
Automation is term given to a technology where machines replace human for doing any
task or any task where there is no involvement of human. According to Rifkin in his book "The
End of Work", Automation is the utilization of various control system for the operation of
machines, gadgets, vehicle or any task without any intervention of a human, or with minimal
Coca-Cola
Coca-Cola is world's largest soft drinks makers and was patented for medicine. John
Pemberton invented Coca-Cola in the late 90s and it was the marketing tactics by Asa Griggs
TECHNOLOGICAL UNEMPLOYMENT & AUTOMATION 4
Candler which made Coca-Cola a global leader in soft drinks. The products were sold in over
Customers, products, and services: Main target customers of Coca-Cola are those
individuals who are aging between 12-30 years. According to a press release by Coca-Cola, there
is no targeting segment with regards to Life Style and Occupation, this drink is made for all.
Coca-Cola has deliberately positioned itself in the soda pops market. Coca Cola has direct tie ups
with the canteens of offices and colleges. Also, they have tie ups with various big restaurants like
McDonalds, KFC, Pizza Hut and Dominos. Their corporate tie is a big reason behind their
increasing sales.
It must face an important question: Will it have to accommodate or adapt to 200 countries
where the brand sells its products? The brand has first grasped this principle of "acting and
thinking worldwide". In this manner, Coca-Cola is prepared to keep Coke in the core product,
offering the needs of locals. They utilize the strategic position so that there is just a single image
in the entire world, which is a success since today it is a part of daily existence all over. ("One
today. Lots of workers who used to work and fill the bottles with the help their hand, from
manufacturing cola drinks to packaging, workers were involved in every process. But now in the
20th century, everything has been changed. From manufacturing to supply chain, everything has
been automated. Although it has benefited both company and consumers but affected a lot in
giving unemployment.
TECHNOLOGICAL UNEMPLOYMENT & AUTOMATION 5
by Frey and Osborne. They investigate how annoying works are for computerization. To assess
this, they start by applying a novel method to estimate the possibility of computerization for 702
businesses implementing the Gaussian process classifier. Because of estimates, they examine the
expected impact of future of computerization on the number of jobs at risk and the results of the
US labor market with the primary objective of analyzing the relationship between
In his article “Technology, unemployment & policy options: Navigating the transition to a
better world” Marchant reported that, it makes the economies unstable because unemployed
cannot run as consumers. Despite if this fact, unemployment is one of the widely disputed
concepts for a long time. According to his article, there is a worry that the rising technologies
like PCs, A.I (artificial intelligence) and robots or autonomy are uprooting human jobs, making a
pandemic of "technological unemployment". Although this projection has not yet been declared,
if this is genuine then our financial and social results will affect this future. In this manner, it is
appropriate to begin the identification of policies and options to determine this potential issue.
(Marchant, Stevens , & Hennessy, 2014). According to an article by a walker. It considers that
automation does not completely replace human labor, but by reducing the need for skill to
compensate for technological progress, reduces the need for human labor below full
too. (Georgiou, 2009). In a book “The Economics of Technology and Employment: Theory and
TECHNOLOGICAL UNEMPLOYMENT & AUTOMATION 6
which critical analysis has been done to analyze how much economic analysis and theory can
collective aptitudes and skills of the workers and the abilities important to show the available
employment. It is considered as big in the form of revolution and whether you like it or not, it is
forever going to change human civilization. (Cesaratto, Stirati, & Serrano, n.d.)
by Pauw, unemployed are not having sufficient skills that are required in the market and this is
the big reason there is the increased demand of skilled labor because of technological
advancements. (Pauw, Oosthuizen, & Westhuizen, 2008). One of the major benefits of the
introduction of the Industrial Revolution in production sector was to give direct profit to both
manufacturers and consumers. This digital era has produced some major problem, although it has
comparison with the rate of unemployment after the industrial revolution. According to this
unemployment level in the USA was less in the 1950s and 1960s. (A History of Unemployment -
has been stated that advancement in technology has led to increase in the level of unemployment.
(Pettinger, 2017)
TECHNOLOGICAL UNEMPLOYMENT & AUTOMATION 7
Scenario
Frey and Osborne find that employment in the sectors like, logistics, manufacturing,
transportation also administration and official jobs are at risk of getting automated. Despite the
growing jobs in the service sectors, the occupation has become susceptible. According to Dr.
Osborne, he had identified several important obstacles, which are currently stopping businesses
automatically. Since big figures help in overcoming these obstacles, many jobs will be put to
risk. Their findings show that the race of technology is moving forward, less skilled workers will
go on the tasks which are not susceptible to computerization- that is, the tasks requiring creative
and social intelligence, articles states. "To win the race workers have to achieve creative and
Similarly, in case of Coca-Cola, skilled workers will have to be more skillful to stay and
Slowly but this is true that robots are taking away employment. Same is the case with
Coca-Cola. According to a back-off-envelope launch, in the ninety years, "70 percent of today's
businesses will be replaced by automation in the same way." Should we worry? About 200 years
ago, 70 % of American labors used to live in farms. Today computerization has disposed of 1%
of its jobs, with the machines instead of them. But the displaced laborers did not sit still. Rather,
technology and automation have made a huge number of jobs in totally new areas.
TECHNOLOGICAL UNEMPLOYMENT & AUTOMATION 8
In an article in Economist “The onrushing wave" Productivity gains will be realistic from
the future automation, even if they submit to the owners of most machines. Some of the goods
and services will be spent - golf trainers, domestic help and so many - and most of the rest is
invested in firms who are demanding expansion and possibly more labor fare. Same is explained
Based on the data of the Federal Reserve Bank of St. Louis, the graph below shows
employment in the United States as part of all jobs, as you can see, a line from the beginning of
the 1950s Almost completely flows straight down the line. (FRED, 2018)
different jobs have been discussed. Same is given in the graph (Below). (The Economist, 2016)
TECHNOLOGICAL UNEMPLOYMENT & AUTOMATION 9
There is a total of 47% of people who are employed in the USA and their job is at risk
because soon they will be replaced by machines. Similarly, in U.K 35% of jobs are at risk of
getting replaced by machines. Automation will not affect those blue-collar workers who are
skilled enough to work with these machines. Companies will need to train their skilled workers
and employees on a regular interval to work with these machines. Companies will have to pay
fewer wages to workers because most of their repetitive work will be done by machines. 24*7
Support for their customers with the help of Chatbots. AI and Machine Learning will change the
way of marketing for all the companies. Payrolls and HR will be Automated and Cloud-Based.
(Gray, 2017)
Conclusion
To limit technological advancement, most of today's believers have given their case basis
on short-term delivery effects. They can understand the government jury to assess the harm done
against their apparent honesty and eloquent society. But the loss will be punitive, not
reimbursement. I believe that improvement technology will be a challenging task for workers
and employees to survive. They will have to improve them self not only by getting smarter but
also skillful. Technology used to do both things: creation of a job and loss of a job. Generally, it
TECHNOLOGICAL UNEMPLOYMENT & AUTOMATION 10
used to reduce low wages, employs fewer productivity, while it creates jobs that make more
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