The Impact Of Industrial Robotic Equipment On Employment

impact of industrial robots

According to the latest surveys, the impact of Industrial robots is far reaching into new areas. As per a survey conducted by IDS & Co, it is found that nine out of ten small and medium industries are using some form of industrial robotics today. Thus, the uses of robots in various sectors have increased multifold over time. In coming years, the impact of industrial robots would continue to increase as various new applications and technology are introduced.

An Overview

A variety of items on a table

Amongst all the sectors that are seeing the impact of industrial robots, hospitality and food industry seem to be the most benefited. This sector is witnessing the largest usage of robots so far. The reason being that there are advanced technologies available which can be used to perform a variety of tasks in the industry. For example, automatic dispensers and other automated systems can increase the efficiency of the working process and thereby save a tremendous amount of manual labor thus bringing about more employment generation.

According to a report presented by The Boston Consulting Group, there will be an increase in the demand for robots in the hospitality industry in the next five years. Further, it is projected that there will be an increase in the number of hotel, inns, and bed and breakfasts with an automation system installed. So, this sector is sure to witness a huge increase in its employee strength as well as in its revenues as a result of this automated technology. Another major benefit of using robots is that they help remove the human intervention cost involved in all the processes. This is beneficial to all sections of the hospitality industry.

Interesting Facts

A man riding on the back of a truck

With the introduction of industrial robots, there is another interesting phenomenon emerging. Productivity growth of companies using robots has risen at a much higher pace as compared to the growth rate of companies without any automation system in place. This situation has been created due to two main reasons. First, due to the productivity boom created due to industrial robots, companies are finding it easier to manage their resources and spend on things that are productive.

Second, due to the implementation of advanced technologies, most of the activities related to production are being handled by robots. If we take into account the productivity growth, one can easily guess that increasing levels of employment are a mere matter of time. If we further add advanced technologies to the equation, it is not very difficult to estimate that even more jobs can be added in the future, probably at higher rates than the present. If one talks about the impact of industrial robots on the employment scenario in the developed countries, one cannot ignore the fact that many professional jobs may also get eliminated as robots replace them in the near future.

The Main Reason

This is why the impact of industrial robots is being predicted to cross the boundaries and touch the sky. The rise in the number of industrial robots will see unemployment figures soaring. It is estimated that as many as one million jobs could get eliminated in the United States and that is a lot. That is more than all the jobs that are being lost in the recession period or in any other country.

So, what is the cure to this situation? As I have already mentioned briefly, robots may play a major role in the automation process. However, it is important to realize that total employment can only rise when aggregate data and employment figures get close to each other. Due to the rising costs of living and the impact of outsourcing and robotics, it is not surprising to see an increase in the unemployment rate in developed countries.


In short, industrial robots and artificial intelligence-based technologies like self-driving vehicles, factory automation, and real-time manufacturing are only the beginning of the automated system. Total employment may increase but not the way it was in previous decades. In fact, the unemployment rate has risen because people have stopped searching for jobs. They have been seduced by the seductive promises of artificial intelligence, self-employment, and total automation. Unless people accept these false promises, there is no way they can survive in advanced industrial societies.

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