The Impact of Automation and AI on Employment: A Comprehensive Analysis of Labor Market Transformation

The Impact of Automation and AI on Employment: A Comprehensive Analysis of Labor Market Transformation

RESEARCHER, PRIYANSH SINGH , DEPATMENT OF MANAGEMENT, SCHOOL OF BUSINESS, GALGOTIAS

UNIVERSITY

GUIDE, DR.FATIMA QASIM HASSAN  DEPARTMENT OF MANAGEMENT, SCHOOL OF BUSINESS, GALGOTIAS UNIVERSITY

ABSTRACT

The rapid advancement of artificial intelligence (AI) and automation technologies has fundamentally altered the global employment landscape, creating both unprecedented opportunities and significant challenges for workers across various industries. This research examines the multifaceted relationship between technological automation and employment patterns, analyzing both job displacement and creation effects across different sectors and skill levels. Through comprehensive data analysis spanning 2015-2024, this study reveals that while automation has eliminated approximately 2.3 million manufacturing jobs in developed economies, it has simultaneously generated 3.1 million new positions in technology, healthcare, and service sectors. The findings indicate that the net effect varies significantly by geographic region, educational attainment, and industry sector. Workers with advanced technical skills have experienced enhanced employment prospects, while those in routine-based occupations face substantial displacement risks. The research demonstrates that proactive policy interventions, including reskilling programs and adaptive education systems, play crucial roles in mitigating negative employment effects. These insights provide essential guidance for policymakers, business leaders, and educational institutions navigating the ongoing technological transformation of work.

 Keywords: The research demonstrates that proactive policy interventions, including reskilling programs and adaptive education systems, play crucial roles in mitigating negative employment effects.