Step 1: Understand what automation means. Automation is when machines or software do tasks that people used to do.
Step 2: Recognize that automation can change the types of jobs available. Some jobs may disappear, while new jobs may be created.
Step 3: Identify that automation often takes over simple, repetitive tasks. This means that workers who do these tasks may lose their jobs.
Step 4: Realize that as machines take over simple tasks, companies need workers who can manage, maintain, and improve these machines.
Step 5: Conclude that this leads to a higher demand for workers with advanced skills, such as technical or analytical skills.
Impact of Automation on Labor Markets – Automation can lead to a shift in labor demand, favoring high-skilled workers while potentially displacing low-skilled jobs.
Skill Gap – As automation increases, there may be a growing gap between the skills required for new jobs and the skills possessed by the current workforce.
Job Displacement – Automation can lead to job losses in certain sectors, particularly for low-skilled positions, while creating new opportunities in others.
