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Automation Has Not Led To An Increase In Worker Income

Home  /  AI In Business   /  Automation Has Not Led To An Increase In Worker Income
worker wages have stagnated

Automation Has Not Led To An Increase In Worker Income

worker wages have stagnated

Automation Has Not Led To An Increase In Worker Income

“Wages have stagnated,” according to Dr. Elisabeth Reynolds, Executive Director, MIT Task Force on the Work of the Future. The new study released by the Task Force has found that, while automation has helped increase worker productivity, it has not helped increase worker wages. The study, dating back to 2018, set out to study the relationship between technology and work, and determine how prosperity can be shared by all. 

Three Recommendations

The report recommended three courses of actions; to use automation to make better quality jobs, to invest in education and training, and to expand innovations. 

Better Quality Jobs Through AI

Rather than simply paying workers more, the report suggests that wages should increase through providing higher quality jobs to less educated workers. “Among rich countries, the US is among the worst places for the less educated and low-paid workers,” found Reynolds. “The quality of jobs in this country has been falling and not keeping up with those in other countries, [and] our workers are falling behind.”

Education helps improve wages

Invest in Education

The report suggests that the most important way that Artificial Intelligence and automation can help improve the lives of workers is by offering better educational opportunities for workers between high school and a university degree. By helping these workers find the best path to a higher pay, more skilled job, we can not only improve worker’s lives, but also those that depend on them. 

Many of these opportunities are in the health care sector, where new workers can put STEM training to real world use as information technicians or similar jobs that only require a high school diploma and a two-year associate’s degree in a STEM field. 

Shape & Expand Innovation

The new jobs we need to employ these newly-educated workers are not necessarily in existence today. “Many jobs that exist today did not exist 40 years ago,” added Reynolds. “Innovation creates jobs and will help the US meet competitive challenges from abroad,” she added. By investing in research and development, we can help drive innovation and higher wages by creating new, skilled positions. 

Read the full PDF to learn more about the study’s findings.