Automation, employment, and capital investment
At his blog STUMBLING AND MUMBLING, CHRIS DILLOW discusses recent reporting on rapid automation fears in the United Kingdom:
"'More than six million workers are worried their jobs could be replaced by machines over the next decade' says the Guardian. This raises a longstanding paradox – that, especially in the UK, the robot economy is much more discussed than observed.
What I mean is that the last few years have seen pretty much the exact opposite of this. Employment has grown nicely whilst capital spending has been sluggish. The ONS says that 'annual growth in gross fixed capital formation has been slowing consistently since 2014.' And the OECD reports that the UK has one of the lowest usages of industrial robots in the western world.
My chart, taken from the Bank of England and ONS, puts this into historic context. It shows that the gap between the growth of the non-dwellings capital stock and employment growth has been lower in recent years than at any time since 1945. The time to worry about machines taking people’s jobs was the 60s and 70s, not today.… If we looked only at the macro data, we’d fear that people are taking robots' jobs – not vice versa."
Link to the post.