Minimum Wage Increase Puts Jobs At Risk of Automation
5th January 2018.
The recent increase in Britain’s minimum wage is putting a growing number of workers at risk of being replaced by machines, a new study has warned.
The Institute for Fiscal Studies (IFS) has found that the proportion of the workforce covered by the minimum wage will triple to 12 percent between 2015 and 2020. This may leave many workers vulnerable to automation such as receptionists and shop checkout operators.
The national living wage has been rising in recent years as a government response to low pay. It has increased from £6.70 in 2015 to £7.50 and will rise further, to £7.83, in April.
According to the IFS the minimum wage has been increasing at a faster rate than wages in general, which has meant more have been affected. Those set to be most disrupted by the increase are likely to be in the more routine occupations, such as retail cashiers and receptionists.
Employment has continued to grow in the years since 2015 and the UK’s unemployment rate stands at 4.3 percent – the lowest level since 1975.
Agnes Norris Keiller, a research economist at IFS and an author of the new research, insists that careful monitoring is required to aid workers whose jobs appear to be more automatable.
The thinktank urges that while automation may put some jobs at risk, it could also create new roles that are complementary to that technology, such as a demand for people to service machinery.
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