Committee on Employment and Social Affairs
By Nicolau Huistra (ES)
The Case Study
In a world where machines are doing more and more jobs, imagine Rosa, a cool and creative girl who just finished studying Media and is doing her master’s in screenwriting. But, uh-oh, there is a twist! Robots and smart computers are getting pretty good at producing scripts themselves. Now Rosa’s feeling a bit like she is standing on a bridge and does not know which way to go. Even though she has a degree in Media Studies, she is worried about her dream of being a screenwriter because of these new innovations.
Picture Rosa with her big dreams, worried about her future employment. She has got all these awesome skills, but the fact of studios and other employers who might choose technology over artists moving forward makes her wonder what’s the best path for her. This poses a challenge for a lot of young talents like Rosa, and it is why we need to figure out ways to help them stay motivated to join the workforce, even when robots are part of the picture.
Abstract
Rising automation disrupts the job market, diminishing workers’ motivation. This persistent issue results from evolving technological landscapes and inadequate support systems. Although there was robust overall employment growth from 2012 to 2019, occupations at high risk of automation experienced a slower rate of job expansion. Additionally, people with lower education are getting concentrated in jobs with a higher risk of automation.
The convergence of the rise of Artificial Intelligence (AI) and the global COVID-19 pandemic has instigated substantial changes. AI adoption has accelerated, impacting various industries, while the pandemic has prompted a shift in work dynamics, emphasising remote and automated solutions. Together, these forces have reshaped traditional structures, accelerating digitalisation and altering how work is conducted and perceived on a global scale.
The urgency of upskilling and reskilling poses imminent challenges for individuals, businesses, and governments, with profound implications for personal well-being, societal prosperity, and self-fulfilment. Effective public policies are crucial for inclusivity in the workforce, necessitating collaboration among various stakeholders.
Key Concepts
- Bottleneck: in this context, the term refers to essential tasks related to perception, manipulation, social intelligence, and creative thinking.
- Automation is the pandemic accelerated automation and algorithmic workforce management, reshaping global work dynamics, a transformation expected to endure.
- Upskilling refers to acquiring additional skills or knowledge to enhance one’s capabilities in the current job or prepare for future career advancements.
- Lifelong learning emphasises the continuous development of skills and knowledge throughout one’s life, adapting to changes in the job market and technological advancements.
- Digital inclusion refers to ensuring that everyone has fair access to and can effectively use information and communication technologies (ICT), especially as industries undergo a digital transformation.
Key Actors and Stakeholders
As the executive branch of the EU, the Commission has the authority to propose and implement policies that can guide Member States in navigating the evolving job market. Given its role in promoting economic and social cohesion across the EU, the Commission is well-positioned to coordinate efforts aimed at reskilling and upskilling the younger generation.
Directorate-General for Employment, Social Affairs, and Inclusion (DG EMPL)
Directorate-General for Employment, Social Affairs, and Inclusion (DG EMPL) is responsible for contributing to developing and implementing policies that promote employment, social inclusion, and equal opportunities throughout the EU. It works on initiatives related to employment and labour market policies, skills development, social protection, and the overall well-being of EU citizens in the context of the changing world of work.
Eurofound
Eurofound is an EU agency based in Dublin, Ireland, whose mission is to provide knowledge to assist in the development of better social, employment, and work-related policies. Eurofound’s work includes studying topics such as youth employment, job quality, and the impact of technological changes on the workforce.
European Employment Services (EURES)
European Employment Services (EURES) is a cooperation network which helps job seekers access employment opportunities in other European countries and provides support to employers looking to recruit from a wider European talent pool.
European Youth Forum
Works as an umbrella organisation that brings together non-governmental youth organisations in Europe. Because it represents the interests of young people and youth organisations at the European level their implication can be of great help to promote young people’s role in the workforce.
Young people
Empowering the youth through inclusive policies and initiatives is fundamental to cultivating a resilient and adaptable workforce for the future. Young individuals need to adapt and acquire skills that align with the requirements of automated industries, influencing educational and training programs.
What Has Happened so Far?
Investment in innovation
Innovation will be crucial in addressing frictions and adjustment challenges in the labour market resulting from automation. Based on an analysis of the McKinsey Global Institute, approximately 62 million full-time employee equivalents and over USD 1.9 trillion in wages could be linked to technically automatable tasks in the five largest European economies. Nevertheless, a significant approach to mitigating the risk of wage and employment pressures is to innovate in the development of new products and services that necessitate acquiring new and highly sought-after skills.
The European Union is set to invest €180 million in groundbreaking digital technologies through its Horizon Europe Programme. The funding, allocated to 28 selected projects after a peer review in March 2023, will advance research and development in key areas such as AI, robotics, and new materials. The EU aims to propel the development and adoption of cutting-edge technologies. This strategic investment aligns with Europe’s vision for a digital, sustainable, and inclusive future. The outcome for youth employment will depend on how well educational systems and workforce development programs adapt to equip young people with the necessary skills for emerging industries. If effectively managed, the innovation could lead to positive outcomes for youth employment within the EU. Since AI is rapidly advancing its effects are likely to disproportionately influence the younger generation, particularly those who have not yet entered the workforce.
Industry transformations
An initial assessment of the automation risk in the EU labour market, utilising data on job skills and tasks from the first European skills and jobs survey by Cedefop, indicates that approximately 14% of jobs in the EU are susceptible to displacement by computer algorithms. Occupations with a greater dependency on routine tasks and limited demand for versatile and interpersonal skills are more likely to be impacted. Workers with lower educational levels and those employed in positions with minimal vocational training are at a heightened risk of automation.
It should be noted that the risk of losing jobs to machines is higher for men and those who are less skilled, especially if they lack digital and versatile skill sets. This risk is heightened in bigger, privately-owned companies that don’t offer extra training. Jobs in crafts, basic roles, and machine operations are more at risk, while managers, white-collar workers, teachers and those in social services are safer. Being in a high-risk job can make people less happy at work, worrying more about job loss or their skills becoming outdated soon. The graph below offers insight into the share of EU workers at very high risk of automation, by industry.
Social effects
To address the challenges of preparing education systems for the future, redesigning social welfare systems, and funding social programs, the TECHNEQUALITY project, supported by the EU, is not only examining the impact of AI and robots on work. It is also investigating how automation might affect different social groups within our society and how technological innovations could potentially amplify social inequalities in the EU and beyond.
There is a pressing need for comprehensive policies that address workforce transitions, promote upskilling, and ensure inclusive economic growth. The impact on various social groups, such as gender and age, also requires careful consideration.
Policy measures
Recently, the European Parliament has approved the AI act with the intention of ensuring the safety, transparency, traceability, non-discrimination, and environmental friendliness of AI systems utilised within the EU. The supervision of AI systems should be conducted by humans rather than automation to mitigate potential negative consequences.
In addressing the labour market challenges posed by robotisation and automation, three main policy solutions have emerged. These options include taxing robot owners to fund universal or conditional basic income, promoting ownership of robots, either collectively or individually, and emphasising human comparative advantages by investing in the development of creative and social intelligence through state-sponsored training programs, education reforms, and lifelong learning initiatives.
Conflict
The advancement of AI presents a paradoxical situation. While AI holds great potential to enhance efficiency and solve complex problems, the increasing automation it brings may lead to job displacement. Striking a balance between harnessing the benefits of AI and addressing its potential negative impacts is crucial. This involves not only embracing technological innovation but also implementing policies and initiatives that mitigate job displacement, foster skill development, and ensure a workforce that remains motivated and engaged in the evolving job market.
Food for thought
In the wild environment that is the tech world, things are changing fast — especially for us, the young crew! Beyond the cool gadgets and apps, there is a whole adventure unfolding in the job scene. Building resilience in an increasingly automated job market is all about developing skills that not only benefit young people now but also set them up for a future that is always upgrading.
Alright, let’s get to the real talk. I get it—automation and job market shifts sound like a giant puzzle, and you might be thinking, “How do I even begin?” Well, guess what? I have got your back. As a Delegate, I remember reading topic overviews and thinking, ‘What on earth are they talking about?’ But with a bit of time and patience, it all starts making sense. This subject might stress you out initially, but believe me, this session is going to be an amazing experience that will make you more knowledgeable in this field. So, buckle up and have some fun!
Valuable Links to Browse
For a clear explanation of the common threats and opportunities there are regarding automation in the workplace, you can take a look here. Additionally, you can also check out this pdf document which includes two informative charts and explains difficult terms that might be challenging to understand. And lastly, for additional information about the key concepts I mentioned before and the direction the EU is taking regarding this issue, here you can find a briefing on what the future of work in the EU might look like, and if you want to go more in-depth on that subject you can also take a look at a more recent report here.