The Impact of Artificial Intelligence on Future Labor Markets

Abstract

Historically, mechanization and the current artificial intelligence trend have been considered as threats to job stability despite the fact that statistics on production and employment have shown the opposite. The COVID-19 pandemic in 2020-21 stimulated robotization in all types of industry with the substitution of labor, raising unemployment, however, there is evidence of its reduction. The purpose of this work is to show how despite the inevitable robotization and the destruction of jobs, new trades and professions will develop in the same way as happened in the three previous revolutions, including all sectors of goods, services and the military. Without falling into the repetition of the already known history, reference is made to recent publications confronting them with the technological trend inherited from the 20th century, business behaviors in the face of COVID-19 and its effect on the future labor market. Statistics show positive aspects such as fast and efficient adaptation by highly qualified companies and employees. There are negative effects such as the loss of competitiveness of low-skilled workers; loss of bargaining power of unions; increase in the gender pay gap; widening gap between high-tech industrialized countries and underdeveloped ones. It is concluded that immediate changes are required in the reorientation of educational programs towards technological careers, labor reforms, financial reforms. The gap between high-tech industrialized countries and underdeveloped ones will undoubtedly widen unless the latter implement radical and pragmatic changes in their economic policies.