Robots will help to boost wages, says Deutsche Bank

The Sunday Telegraph - Money & Business - - Business - By Tim Wallace

WORK­ERS have been told to “learn to love” robots in­stead of fear­ing them be­cause they are the key to boost­ing wages.

Pay growth has been measly across much of the rich world since the fi­nan­cial cri­sis, in part be­cause pro­duc­tiv­ity has in­creased very slowly.

Econ­o­mists at Deutsche Bank be­lieve the an­swer is to step up in­vest­ment in mod­ern tech­nol­ogy, which means work­ers wel­com­ing robots into the work­place. Rather than tak­ing jobs, this should en­hance them, just as pre­vi­ous waves of tech­nol­ogy have, they claim.

“A look at the un­em­ploy­ment rate in ma­jor economies through this quar­ter­mil­len­nium pe­riod sug­gests that the pa­rade of con­stant (and mind-bog­gling) labour-sav­ing im­prove­ments has had no struc­tural long-term im­pact on the un­em­ploy­ment rate,” said Jim Reid at Deutsche Bank. “So we say, learn to love your ro­bot col­league.”

Mr Reid also cites a surge in the global work­force since the Eight­ies as glob­al­i­sa­tion took off, and China join­ing the world econ­omy, which brought “a huge pool of cheap work­ers” into the mar­ket.

But that is now “lev­el­ling off”, he said. “As such, I be­lieve we will look back on the mid­dle of this decade as the turn­ing point for the post-eight­ies re­la­tion­ship be­tween cap­i­tal and labour.”

Jim Reid, from Deutsche Bank, has urged em­ploy­ees to wel­come hav­ing ro­bot col­leagues in their work­place

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.