Who will pay for retraining in the robot era?
The latest research published at the World Economic Forum (WEF 2018) points out that if continuous progress in automation will eliminate some work, humans must be resilient and willing to learn new things. Everyone must be a lifelong learner with creativity, curiosity and agility, and be comfortable with the constant changes.
According to reports, this study does not put all responsibilities in the individual's need to adjust the mindset to adapt to the work of the new world, and emphasizes that employers and countries also need to cooperate to help people develop new skills. The study estimates that about 95% of the 1.4 million Americans whose work is about to be subverted will be able to get safer jobs through a series of retraining, without paying or even better. For example, a truck driver can become a crane operator, and a line worker can become a construction worker.
But the unresolved issues in the study include who is going to pay for people's retraining, how to ensure that the people who need it the most are retrained, and the job seekers' new skills, but the local economy does not need these skills. If you let everyone arrange and retrain at their own expense, people who have no money or time will be excluded. If the responsibility for retraining is given to the employer, the risk of underinvestment is assumed, or the employer will only invest in certain types of employees.
Sweden is the best example of employer-funded retraining. Job security councils, established through collective agreements and paid for by employers, provide advice and retraining to blue-collar and white-collar workers who have been laid off. Therefore, Sweden has the best re-employment rate in the countries of the Organization for Economic Cooperation and Development (OECD).
But it's worth noting that even if the system works, workers on temporary or fixed-term contracts can only get the least support. It is clear that the state also needs to play a role in ensuring that everyone has equal access to the funds and support needed for retraining.
All eyes are now focused on France. French President Emmanuel Macron hopes to promote reforms in this area. But even if you do better in terms of talent retraining, you can't solve every problem brought about by the rise of robots. For example, the unemployed need not only to be retrained, but also to have new jobs that can be applied.
However, this benign situation is often far from reality, especially for workers who need to start again in small towns rather than big cities. For example, when the US textile mills begin to shut down, the affected workers will continue to change jobs over the next 10 years. Part of the reason they did not receive retraining, but it may also be because the local economy slowed down due to the loss of major industries, and did not produce all kinds of safer jobs.
Some people will say that in this case, people should move to a place where they have new jobs. But the way the world works is not the case. Even if economists want people to move to work, many people don't want to leave their homes. In the era of robotics, it is not enough to help people with resilience. It also takes time and money to make each place have resilience.
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