The bleak impact of automation on low-skilled workers widening the chasm of inequality in South Africa

24 October 2023
Automation, fuelled by advances in artificial intelligence and robotics, is transforming industries across the globe the globe, promising greater efficiency, production and obviously profitability. Its influence, however, is not consistent throughout society. This blog dives into the multiple consequences of automation in South Africa, examining how technology and specifically Dynamics 365 Customer Engagement has the potential to increase inequality, reshape the future of labour, and question the government’s role. Furthermore, we will investigate the ethical challenges highlighted by automation, as well as the need to modify education of people for an ever-changing labour environment. Indeed, a challenging task.

 

Automation’s impact on inequality

As the age of automation is here, the shadows thrown on unskilled people become wider. The promise of efficiency and development via automation raises the spectre of job displacement, stagnating pay, and a growing gulf between the haves and have-nots. The effect of automation on the most vulnerable employees in South Africa, where economic inequities remain, is heartbreaking.

Mass job displacement and soaring unemployment

The continuous march of automation wreaks havoc on the economy of low-skilled people. Jobs that formerly supported thousands of people are now being phased out as computers and algorithms take over repetitious work with merciless efficiency. Industries that were formerly labour-intensive are now prioritising cost-cutting techniques, sending tens of thousands of unskilled people to the unemployment line.

Automation throws gasoline to the flames in a country already dealing with high unemployment rates, further marginalising the economically poor and fuelling despair amongst job searchers.

Wage and bargaining power erosion

For those lucky enough to keep their work in an automated world, the outlook is dismal. Employers have the upper hand in a surplus labour market as automation reduces demand for physical labour. This leads to stagnant wages and diminished bargaining leverage for low-skilled employees, committing them to economic stagnation in perpetuity.

As the wage disparity between executives and front-line employees increases, a feeling of economic injustice festers, corroding the fundamental fabric of society.

Training and education challenges

The promise of upskilling and reskilling for low-skilled employees is often a harsh deception. For those already burdened by social and economic disadvantages, access to excellent training and education remains elusive. The rate of technology innovation outpaces employees’ capacity to keep up, leaving them stuck without the skills required to seek gainful jobs.

The previously formidable hurdles to schooling for the poor have risen even more in the face of automation, entrenching generational cycles of poverty and despair.

The dehumanisation of workers in a dystopian future

In the pursuit of automation-driven profitability, worker dehumanisation emerges as a grim reality. Workers are considered as interchangeable cogs in a soulless machine, their value determined entirely by their ability to outperform the machines themselves. The human touch, formerly revered in craftsmanship, has been reduced to insignificance, supplanted by callous algorithms and compassion- free manufacturing lines. This degradation of human dignity as a result of automation erodes the fundamental core of what it means to be a worker in a society that takes pride in progress.

The black clouds of automation loom over South Africa’s low-skilled workers, heralding a storm of job dislocation, declining wages, and worsened inequality. For individuals whose livelihoods are endangered by automation’s brutal efficiency, the promise of a brighter future via technology sounds hollow. To avoid the worst-case scenarios, immediate action is essential. Measures to safeguard low-skilled employees from the horrors of automation must be prioritised in society. Reskilling and upskilling efforts, as well as strong social safety nets, may give a light of optimism in the midst of gloom.

South Africa must confront the ethical implications of automation in order to find a balance between development and compassion. Only by making concerted efforts to protect the well-being and dignity of low-skilled employees, can the country chart a course toward a more egalitarian and inclusive future.

Automation’s impact on the future of work

The future of labour is a hotly debated topic. Some experts fear automation will result in widespread unemployment, leaving humans solely with creative and strategic activities. Proponents of automation, on the other hand, say that it will generate new employment that we cannot even imagine today. The future of labour is particularly unclear in South Africa, which has a varied economy and a strong informal sector.

The government’s role in the age of automation

The government’s involvement in mitigating the effects of automation is a difficult subject. While some argue for little interference and laissez-faire policies, others urge for aggressive worker protection measures. Policy makers must be nimble and sensitive to changing trends in order to handle this uncertainty. Strategic collaborations between the government, companies, and educational institutions are critical for identifying future employment openings and developing necessary workforce skills.

In South Africa, where socio- economic inequities persist, the government must play an active role. Support for displaced employees via job placement programmes, unemployment compensation, and subsidised training efforts may all contribute to greater economic inclusion. Working with the business sector to invest in new technology and sustainable practices will also be critical to ensure a balanced approach.

The government’s role in the age of automation

The government’s involvement in mitigating the effects of automation is a difficult subject. While some argue for little interference and laissez-faire policies, others urge for aggressive worker protection measures.

Policy makers must be nimble and sensitive to changing trends in order to handle this uncertainty. Strategic collaborations between the government, companies, and educational institutions are critical for identifying future employment openings and developing necessary workforce skills.

In South Africa, where socio- economic inequities persist, the government must play an active role. Support for displaced employees via job placement programmes, unemployment compensation, and subsidised training efforts may all contribute to greater economic inclusion. Working with the business sector to invest in new technology and sustainable practices will also be critical to ensure a balanced approach.

Automation’s ethical implications

The growth of automation raises a slew of ethical quandaries. Concerns include employment losses, the exploitation of personal

The legal structure in South Africa should develop to accommodate rising ethical issues in the era of automation. Strengthening data protection legislation, forming AI ethical committees, and encouraging open business practices may all assist to sustain public confidence in automated systems.

Education’s future in an age of automation

As automation undermines conventional work positions, education’s future must adapt. Workers will need chances for ongoing learning in order to stay relevant in a quickly changing employment market. In South Africa, the focus is on lifelong learning, vocational training, and the development of digital skills. Collaboration among educational institutions, industry partners, and the government may result in adaptable programmes that provide people with the skills they need to flourish in the age of automation.

To avoid the worst-case scenarios, immediate action is essential. Measures to safeguard low-skilled employees from the horrors of automation must be prioritised in society. Reskilling and upskilling efforts, as well as strong social safety nets, may give a light of optimism in the midst of gloom.

4Sight can and will play its part

4Sight is a prominent supplier of automation solutions. We assist firms in automating their processes and increasing their efficiency.

We also provide training and support to employees in order to help them upskill and adapt to the changing employment market. We think that automation may be a positive factor in South Africa, but it is critical that the advantages of automation be distributed equally. We are dedicated to collaborating with the government, industry, and educational institutions to build a future in which automation benefits all parts of society.

If you’d like to learn more about how 4Sight may assist you in navigating the obstacles of automation, please contact us at This email address is being protected from spambots. You need JavaScript enabled to view it.
We can work together to create a future where automation works for everyone.

Blog Post Banner Chris Fourie

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