London Daily

Focus on the big picture.
Friday, Apr 03, 2026

The fear of robots displacing workers has returned

The fear of robots displacing workers has returned

But do not expect tech-induced lay-offs just yet

COVID-19 PRESENTED employers with a simple choice: find ways for workers to do their jobs safely, or shut down. At least some have chosen a third option, of dispensing with humans altogether. Among the many breathless headlines prompted by the pandemic are those warning of a new wave of job-destroying automation.

The pace of automation in some parts of the economy, like factory floors and warehouses, is almost certain to accelerate. Yet on the whole, robot-induced mass unemployment should remain near the bottom of workers’ lists of worries.

The world has only recently recovered from a bout of robophobia. In the early 2010s advances in robotics and artificial intelligence (AI), described ominously in countless papers and books, seemed to portend a wave of job destruction. High unemployment after the global financial crisis of 2007-09 added to fears of a job scarcity.

Fretting about robots in a downturn is not entirely irrational: firms appear to do most of their job-slashing during slumps. Nir Jaimovich of the University of Zurich and Henry Siu of the University of British Columbia argue that labour-market recoveries have grown weaker in recent decades as a result. Worries can be overdone, though. By the end of the decade unemployment had dropped like a stone and driverless vehicles were struggling to turn left. The earlier panic seemed a touch hysterical.

High rates of joblessness and eye-catching technological advances are again contributing to a new round of fears. In recent weeks, for instance, mind-boggling examples of the capabilities of GPT-3—an AI-based language-processing model developed by OpenAI, a research organisation—have zoomed around the internet.

Another cause for anxiety has been businesses’ strategies for coping with the pandemic. Anecdotes of covid-motivated automation are easy to find. Many organisations have turned to software to automate paper-processing tasks that cannot be done by homebound workers. Those facing a deluge of customer enquiries, such as hospitals, are supplementing human assistants with chatbots. Employers’ interest in automating tasks in high-risk environments, such as slaughterhouses, is reportedly on the rise.

Any effect of these on unemployment has almost certainly been swamped by stronger economic forces, such as social-distancing measures and collapsing aggregate demand. And the pace of automation is likely to be gradual rather than disruptively speedy. Many jobs, even those commonly classified as “low-skilled”, require manual and social dexterity that machines cannot yet match.

Workers in face-to-face industries—in bars or restaurants, say, or hair and nail salons—are especially vulnerable to covid-19. But there is little scope for, or interest in, replacing them with robots. In New York thousands of public-transport workers caught the virus, and dozens died. Despite billions of dollars of investment in driverless vehicles, though, computers cannot yet pilot buses through chaotic city streets.

Furthermore, automation is only one of the technological solutions available to firms as they weather the crisis. The pandemic’s most profound labour-market legacy will probably be a rise in remote work.

About half of all Americans who were working before the arrival of covid-19 were doing their jobs remotely by May, according to one estimate. Surveys of firms indicate that some of the shift will not be reversed. If remote work slashes overheads and enables people to move to cheaper cities, it could preserve jobs, by alleviating cost pressures on struggling firms.

Telework may have some job-destroying effects, though. The pandemic has sped the adoption of technology in labour-intensive sectors like education and health care. Telemedicine and distance learning might mean that fewer doctors and teachers can serve more patients and students.

Their largest impact is likely to be on blue-collar workers, such as clerical and janitorial staff, whose services become less necessary as the physical footprint of education and health institutions gets lighter. In a recent essay David Autor and Elisabeth Reynolds of Massachusetts Institute of Technology warn that such a dynamic could play out more widely.

Over the past half-century employment growth in cities polarised: middle-skill work declined, and employment grew in white-collar professions and the services that support them. If remote working proves a lasting shift, then the café staff, taxi drivers and cleaners who depend on their custom could find themselves out of work.

Such severe, lasting labour-market pain in the aftermath of the pandemic may actually delay automation, by depressing wages. Developing and deploying new technologies costs money. Would-be automators deciding whether or not to make the needed investment could be swayed by the large reservoir of underemployed labour, willing to work for low pay. In America slaughterhouses—which often hire from a big pool of low-wage workers, many of them undocumented immigrants—are far less automated today than in parts of northern Europe, for example.

Automatic transition


Tech-induced mass unemployment, then, seems unlikely. But there is one scenario where covid-19 could unleash the robots—if labour costs start to drift upwards, perhaps as global supply chains break down, or minimum wages rise. The reshoring of manufacturing jobs could lead to pressure to replace cheap foreign labour with robots at home. Production could no longer take advantage of low-cost labour, as America’s meat-processing industry does.

Years of economic dysfunction have energised campaigns for higher minimum wages and a more generous welfare state. The economic devastation wrought by the pandemic lends them momentum; like past crises, it could lay the groundwork for a new social contract. If post-pandemic policy were to enable workers to enjoy more security on fewer hours worked, firms might then face some genuine labour scarcity. And that would really work up an appetite for disruption.


Newsletter

Related Articles

0:00
0:00
Close
Trump’s Strategic Pressure on UK Seen as Push for Stronger Alignment and Fairer Terms
UK Focuses on Trade Finance to Secure Critical Materials for Defence and Energy Sectors
Majority of UK Businesses Hit by Middle East Conflict While Confidence Holds Firm
UK Royal Navy Faces Renewed Scrutiny as Debate Intensifies Over Capability and Readiness
Reform UK Faces Mounting Distractions as Policy Agenda Struggles to Gain Traction
Investigation Launched Into Northern Cyprus IVF Clinics After UK Families Receive Incorrect Sperm
International Meeting Issues Unified Call to Safeguard Navigation Through Strait of Hormuz
Potential Strait of Hormuz Closure Raises Concerns Over UK Food and Medicine Supply Chains
UK Leads Coalition of Over Forty Nations Urging Iran to Reopen Strait of Hormuz
UK Secures Tariff-Free Access for Medicines in Landmark US Pharma Trade Agreement
King Charles III Invited to Address Joint Session of U.S. Congress in Rare Diplomatic Honor
Debate Grows Over Whether Expanded North Sea Drilling Can Reduce UK Energy Bills
UK Faces Heightened Risk of Jet Fuel Shortages, Airline Chief Warns
UK Ends Police Investigations into Lawful Social Media Posts After Review Finds Overreach
Abramovich Moves to Establish Charity for Frozen Chelsea Sale Proceeds Amid UK Dispute
Starmer Reaffirms NATO Commitment While Responding to Trump’s Strategic Critique
UK Aid Reductions Raise Fears of Severe Human Impact Across Parts of Africa
UK Signals Renewed Push for EU Cooperation as Iran Conflict Reshapes Security Landscape
Bank of England Signals Caution as Bailey Advises Markets Against Expecting Rate Hikes
UK to Convene Global Coalition to Restore Shipping Through Strait of Hormuz
Trump Signals Possible NATO Reassessment, Emphasizes Stronger U.S. Strategic Autonomy
Australia Joins British-Led Efforts to Reopen Strait of Hormuz Amid Escalating Tensions
King Charles Plans US State Visit as UK Strengthens Ties with Trump Leadership
UK Regulator Launches Investigation Into Microsoft’s Business Software Practices
Kanye West Set for High-Profile Return to UK Stage at Wireless Festival
Trump Presses Europe to Strengthen Commitment as Iran Conflict Escalates
UK to Deploy Additional Troops to Middle East Amid Rising Regional Tensions
UK Authorities Face Claims of Heavy-Handed Measures in Monitoring Released Pro-Palestine Activists
Trump Calls on UK to Secure Its Own Energy as Iran Conflict Intensifies
Nigel Farage Declines Invitation to UK Conservative Conference Led by Liz Truss
Trump Warns Allies to Take Responsibility as Rift Deepens with UK and France Over Iran Conflict
How Britain’s Prime Minister Controls U.S. Bomber Access in Escalating Iran Conflict
Trump Urges Allies to Secure Their Own Oil Supplies as Hormuz Crisis Disrupts Global Energy
Russia Expels British Diplomat as UK Pushes Back Against Pressure
White House App Faces Scrutiny After Claims of Continuous User Location Tracking
BBC Faces Scrutiny Over Allegations of Paid Content Linked to Saudi Arabia
UK-France Coastal Patrol Agreement Nears Breakdown Amid Migration Pressures
UK Police Detain Pro-Palestine Activist Again Weeks After Bail Release
FTSE 100 Advances as Energy and Mining Shares Gain Amid Middle East Tensions
Eli Lilly Seeks UK Pricing Deal to Unlock Renewed Pharmaceutical Investment
Three Arrested in UK After Massive Cocaine Haul Discovered Hidden in Banana Shipment
UK Fuel Prices Poised for Further Surge Amid Global Energy Pressures
Apple Subsidiary Penalized by UK Authorities for Breach of Moscow Sanctions
Western Allies Intensify Coordinated Sanctions Strategy Against Russia
UK Lawmakers Face Criticism Over Renewed Push for Social Media Restrictions
Starmer Signals UK Crackdown on Addictive Social Media Features
Rising Costs Push One in Five UK Hospitality Businesses to the Brink of Closure
Man Arrested on Suspicion of Attempted Murder After Car Strikes Pedestrians in UK, Injuring Seven
Escalating Conflict Involving Iran Tightens Fiscal Pressures and Highlights UK Economic Vulnerabilities
UK Moves to Confront Russian ‘Shadow Fleet’ Operating in Its Waters
×