A new report from the Institute of Fiscal Studies suggests that raising the minimum wage will make workers unaffordable and push more businesses to automation. In industries where this is already happening, the use of new technology replacing low skilled jobs created other relevant jobs and workers could be upskilled as a result of higher wages, which in turn produced a more efficient workforce. Over time, progress and innovation have made industry more efficient and the workplace a safer, more enjoyable place to be.
If wages do rise at the rate that is predicted, it is likely that many businesses will find it difficult to afford the workers needed and with the quick turn around on ROI, especially in the collaborative robot market, and the already reported skills shortage, it makes sense to start automating the dangerous, dull and dirty tasks.
The UK is currently one of the least automated when it comes to manufacturing and with Brexit predictions stating that many workers will be leaving come 2019, perhaps these changes in the workforce should be welcomed rather than feared?
You can read the full report from the IFS here.
