People are losing jobs to automation and new technologies at an accelerating rate. Self-serve checkouts, warehouse tracking systems and other innovations can increase efficiency but also reduce the number of paid positions a business needs.
I recently heard a podcast about work in modern shipping warehouses that described tight performance tracking and gamified productivity targets for workers. Those systems can change daily expectations and the structure of certain jobs.
Jobs affected
- Retail clerks and cashiers
- Pharmacists
- Soldiers
- Reporters and some newsroom roles
- Drivers (including long-haul and delivery)
- Fast-food workers
- Assembly and factory workers
- Bank tellers
- Secretaries and administrative assistants
- Stock traders and some finance roles
- Warehouse workers
Technology shifts the employment landscape in many industries. Devices and services that combine multiple functions can eliminate jobs that previously supported single-purpose products or services. For a closer look at how businesses and insurers adapt, see Impact of Technology on Business and Insurance.
Futurists have long predicted that computing and automation would change how much full-time employment is economically necessary. That shift affects broader economic patterns, including consumer demand and public costs related to unemployment.
When many people are out of work because demand for labor has fallen, the economy tends to split between higher-paid knowledge roles and lower-paid service roles that remain difficult to automate. For analysis of related trends and implications for workplace coverage, see Megatrends Affecting Businesses and Workers' Compensation.
Businesses and professionals alike face new risk profiles as technology changes. Owners should consider whether their policies address errors, omissions or operational gaps introduced by new systems; more information is available at Technology Errors and Omissions Insurance.
As these changes continue, individuals and employers may need to reassess skills, staffing models and protections. If you have concerns about how automation could affect your workplace or coverage, talk to your agent about options.
Frequently Asked Questions
How does automation affect workers' insurance needs?
Automation can change exposure to liability and operational risk, prompting businesses to review general liability, workers' compensation and technology-specific coverages.
Are there insurance products that address technology failures?
Yes; errors and omissions or technology-specific policies can help cover losses from software or system failures, depending on policy terms.
Will service workers be fully replaced by machines?
Many service roles are less susceptible to full automation, but some tasks may be automated; outcomes vary by industry and technology maturity.
What should employers do if they plan to adopt automation?
Employers should assess operational risks, update training, communicate with staff, and review insurance coverage before deployment.