Minimum income schemes needed for job loss due to automation: Study

Certain sectors are expected to experience shrinkage of employment demand as robotic systems and algorithms take up several tasks

GN Bureau | May 2, 2017


#Universal Basic Income   #UBI   #Economic Survey   #Narendra Modi   #Demonetisation   #Budget 2017   #Economy   #Renana Jhabvala   #Sewa Bharat   #Economic Survey  


With the Indian IT and other industries facing daunting challenges from protectionism in the US and Artificial Intelligence (AI), an ASSOCHAM-PwC study has made out a case for government –industry schemes that ensure a minimum income to those displaced , along with basic health facilities for the families in stress.

It said there are concerns in a number of industries related to loss of jobs, arising out AI and robotics and the solution lies in facing the issue upfront and skilling up the country's human resource.

Read --  Universal Basic Income: The big idea takes tiny steps

“In light of technology advances, certain sectors are expected to experience shrinkage of employment demand as robotic systems and algorithms take up several tasks. It can be expected that IT, manufacturing, agriculture etc will experience such a demand shift,” the study noted.

Quoting Oxford University researchers Carl Frety and Michael Osborne, based on 702 occupational groupings, workers in tele-marketing, hand sewers, mathematical technicians, insurance underwriters, watch repairers, cargo agents, tax preparers have a very high probability of being replaced by automation.

The ASSOCHAM-PwC Paper suggested that even though the churn arising out of automation would throw new opportunities, certain basic cushion must be given to those who may get affected by the AI and robotics and other automation technologies.

The paper made a strong case for universal benefits outside employment structures. “If a large number of people end up unemployed for extended periods of time, there needs to be a way to provide healthcare, disability and pension benefits outside employment.”

It also sought a minimum income to sustain households. “In the event of continuous unemployment or under-employment, government schemes to provide a minimum level of income to each citizen to guarantee basic needs are necessary to keep them out of destitution. Proposals must be structured in a way so as to maintain a balance between benefits and incentives for engagement – for example by involving the unemployed in social and community initiatives”.

The ASSOCHAM–PwC Paper sought creation of separate funds by the companies for skill re-training of employees. “Companies can contribute a set amount to an individual's fund which can then be transferred as the individual switches jobs.  The goal of such an initiative will be o incentivize lifelong education and up-skilling."

Comments

 

Other News

Aero India 2019 kicks off in Bengaluru

Five day long Aero India -2019 organised by Hindustan Aeronautics Limited (HAL) was inaugurated at Air Force Station, Yelahanka, Bengaluru on Wednesday.   The French origin Rafale fighter jets are also participating in the event.   Asia’ largest

BHEL builds India’s first regenerative 5,000 HP electric locomotive

In a major technological breakthrough, BHEL has developed the country’s first such regenerative 5,000 horse power (HP) WAG-7 electric locomotive with a modern regeneration system for Indian Railways.   The electric loco was flagged-off by member traction, railway board, Gha

Prime Minister dedicates Rs 33,000 crore projects in Begusarai

Prime Minister Narendra Modi dedicated a host of developmental projects at Ulao airport in Begusarai, Bihar. Modi said these projects will fuel the progress of Bihar and the eastern states. He said that Bihar had the potential to play a pivotal role in driving the growth of the country. “The

IOCL finalises term contract for import of US crude oil grades

IndianOil Corporation has finalised a term contract for import of up to three MMT (million metric tonnes) of crude oil of US origin grades to diversify term crude sources in 2019-20 fiscal. The enterprise has finalised the contact on February 15, 2019.   The value of the cont

For a healthy tomorrow

When Dr Shruti Kamdi (pictured on left), a transfusion specialist at a leading Mumbai hospital, had her first child, she struggled to nurse her baby as she was unable to secrete enough milk. Admitted to a private hospital, she was put on medication to increase breast milk. But that didn’t help much.

Reinvigorating reinsurance

After the liberalisation of the insurance industry in 2000, private firms (mostly in partnerships with foreign firms) have readily taken to the sector. Till FY18 there were 23 private firms in the life insurance sector and 21 in general insurance segment. However, it was only in 2016-17 that the first priv

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter