Tag Archives: losses

WHAT ARE SOME POTENTIAL JOB LOSSES THAT COULD OCCUR WITH THE WIDESPREAD ADOPTION OF SELF DRIVING CARS

The widespread adoption of self-driving vehicles has the potential to significantly impact many existing jobs. One of the largest and most obvious job categories that could see major losses is commercial drivers such as taxi drivers, ride-hailing drivers such as Uber and Lyft operators, truck drivers, and bus drivers. According to estimates from the U.S. Bureau of Labor Statistics, there are over 3.5 million Americans employed as drivers of taxi cabs and ride-hailing vehicles, heavy and tractor-trailer truck drivers, and bus drivers. With self-driving vehicles able to operate without a human driver, the need for people to operate vehicles for a living would greatly diminish.

While self-driving trucks may still require drivers as attendants initially, the role would be more supervisory than operational driving the vehicle. Over time, the job functions of commercial drivers could be eliminated altogether as technology advances. This would result in massive job losses across these commercial driving industries that currently employ millions. Commercial driving also has many ancillary jobs associated with it such as truck stop employees, repair shop workers, weight station attendants, and others that could see reduced demand. The impact would ripple through local economies that rely heavily on commercial transportation.

In addition to commercial drivers, many automotive industry jobs could be affected. Mechanics focused on repairing and maintaining human-operated vehicles may see reduced demand for their services. As self-driving vehicles rely more on software, communication systems, and sensor technologies rather than mechanical components, the needs of vehicles will change. While new technical mechanic and repair jobs may emerge to service autonomous technologies, many existing mechanic specializations could become obsolete. Manufacturing line workers building vehicles may also face risks. As vehicles require fewer human-centric components and more computers and automation, production facilities would likely require fewer workers and adopt more industrial robotics.

Complementing the mechanical and manufacturing implications are a variety of jobs in supporting industries. From vendors that serve gas stations and truck stops to motels along highways that rely on commercial driver customers, many local businesses could take an economic hit from less vehicle traffic operated by humans. Roadside assistance workers like tow truck drivers may have lower call volumes as self-driving vehicles have fewer accidents and need less aid with tasks like jump starts. Even industries like motor vehicle parts suppliers, car washes, and parking facilities could see their customer base erode over time with autonomous vehicles that require less human oversight and operation.

Insurance and finance sector jobs linked to vehicle ownership may also see reallocation. Roles associated with insuring human drivers against issues like accidents and liabilities would logically decline if robot-driven cars cause drastically fewer crashes. Auto insurance models and underwriting specialists may need to shift focus. On the lending side, banks and finance companies that currently provide loans and financing packages for vehicle purchases may originate fewer new loans as shared mobility further reduces private car ownership. Related customer service and debt collection roles could consequently contract. Real estate could additionally feel impacts, as autonomous vehicles may reduce demand for non-residential developments centered around human transportation needs from gas stations to parking decks.

While the nature of many transportation planning, urban design, traffic engineering and government regulatory jobs would transition alongside autonomous vehicle integration, overall staffing levels in these fields may not necessarily decrease. Without intervention, job losses across whole sectors like commercial driving could number in the millions. Proactive workforce retraining programs and policy will be crucial to help displaced workers transition skills and find new occupations. There would surely be many new types of jobs created to develop, deploy and maintain autonomous vehicle systems, but the costs of lost jobs may unfortunately outweigh the benefits for some time without strategies to support workers through change. Widespread autonomous vehicle adoption holds potential economic gains, but also significant risks to employment that responsible leaders must address proactively to manage impacts. The changes will be massive, and managing this transition effectively will be one of the great challenges in developing self-driving technology for the benefit of society.

HOW CAN GOVERNMENTS SUPPORT WORKFORCE TRANSITIONS AND MITIGATE JOB LOSSES CAUSED BY THE RISE OF AUTONOMOUS VEHICLES

The rise of autonomous vehicles and other emerging technologies has the potential to significantly disrupt many existing occupations and jobs. Millions of people worldwide whose current jobs involve driving vehicles, such as commercial truck drivers, taxi drivers, ride-hailing drivers and delivery drivers, may lose their jobs as autonomous vehicles replace human drivers. To help mitigate the negative impacts of these transitions and smooth the process of workforce retraining, governments will need to implement supportive policies and programs.

One of the most important things governments can do is provide adequate unemployment benefits and safety net programs for those who lose their jobs due to technological changes. As autonomous vehicles start putting some drivers out of work, unemployment insurance can help support people financially as they search for new jobs or retrain for different careers. Governments may need to make adjustments to eligibility rules and benefit amounts to ensure coverage is sufficient for job losses on a large scale caused by widespread technological transformations, rather than more temporary or localized layoffs. Expanding access to programs that assist with needs like healthcare, food assistance, housing assistance and job training can also help smooth the transition for displaced workers.

Targeted worker retraining programs will be crucial to help transition displaced workers into new occupations and sectors not susceptible to automation. Governments should work to identify new and emerging job types and skill sets that will still require human workers even after autonomous vehicle adoption increases. Then they can design and fund educational programs, apprenticeships, vocational training courses and certifications to teach displaced drivers and others the skills needed for these in-demand jobs of the future. Some potential new career paths that autonomous vehicle drivers could retrain for include jobs in software engineering, robotics, cybersecurity, mechatronics, IoT and data analysis roles related to autonomous systems.

To promote uptake of retraining programs and reskilling opportunities by impacted workers, governments can offer financial incentives like grants or subsidized tuition for approved courses of study. Other supports like childcare or transportation assistance during the period of retraining can further reduce barriers to participation. Apprenticeship or on-the-job training models that still provide income and experience while learning new skills can also help ease financial burdens during workforce transitions. Collaboration between governments, educational institutions and employers will be important to design demand-driven training programs aligned with labor market needs.

Direct job placement assistance may also help workers transition more smoothly. Governments can work with employers, staffing agencies, unions and trade groups to facilitate job fairs and recruiting events matching displaced drivers and others with new employers in growing industries. They can also promote apprenticeship and “earn while you learn” models directly with companies expanding in relevant emerging fields. Subsidies or tax incentives for employers who hire reskilled workers from impact professions could encourage more job opportunities. Maintained registries of transitioning workers and their recent training/certifications can further streamline placement efforts.

In some cases, governments may decide to support employment transitions through publicly-funded job creation as well. For example, some displaced commercial vehicle drivers could potentially be retrained and hired to operate autonomous government vehicles in applications like public transit systems early on. Public works projects focused on expanding broadband access, green infrastructure development or caregiving roles could also help generate interim employment for transitioning workers. Such strategies aim to sustain livelihoods and labor force participation during disruption until workers fully reskill into sustainable long-term careers.

Governments may wish to consider targeted income support or wage subsidies during workforce transitions caused by technological disruption. For example, income guarantees for displaced drivers who enroll in retraining could smooth financial hardships as they develop new skills. Subsidies to employers hiring transitioning workers that slowly phase out overtime can promote placement while allowing workers breathing room to ramp productivity in a new field. Coordinating such programs regionally, at the community level, can keep locally-focused support tailored to specific impacts on regions reliant on at-risk occupations.

No single policy approach will fully mitigate job disruption from autonomous vehicles or other emerging technologies. But governments that implement thoughtful, integrated strategies incorporating adequate support networks, robust retraining opportunities, job placement assistance and potentially targeted income supports can significantly soften negative workforce transitions and maximize opportunities for new employment and career development. Proactive, collaborative efforts across education, labor, employment and economic development agencies will be vital to promote smooth and equitable disruption management that leaves communities and countries well-positioned to thrive in the industries of the future.