Using Gdp as Kpi in China

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Part II: Are Robots Hurting Job Growth

Q1.

There are several reasons why firms use robotics to replace human workforce. Firstly, robots can help on more specialized areas such as computing, math, architecture, and engineering, which may need experts in those areas and robots can lead to lower cost. Secondly, robots can work more efficiently and the physical strength is stronger than human. They can work 24 hours everyday. It can reduce over work from employee and also increase the productivity. It is because there is laws that protect employees have the maximum working hours according to laws but robots doesn't have. Thirdly, robots can have standardise quality. It is suitable for industrial and mechanical industry. Fourthly, robots can lower the cost. it will lower the HR cost as there is no turnover for robots and no employee insurance and fridge benefits are needed.

Q2.

Technological Advances can increase the efficiency on production and therefore reduce the demand of the labour as robots or the computer can substitute the labours, or work even better. According to the Labour Supply (SL) and Labour Demand (LD1) shown below chart. The demand of labour will be decreased when technology advances in company, the Labour Demand will shift to left. The new equilibrium Real wage (W2) will be less than the original Real Wage (W1). The reason is the job position become worthless as the company have a better substitution. In the company prospective, they would wish to hire labours with lower wages than before in the market situation. For the Labours who are willing to work but unwilling to reduce their wages will leave the company so that become unemployment. (L1 – L3). If the Technology advances in the market, the unemployed labours will be difficult to find another same / similar job with their previously relative higher wages. Something it may discourage and behave disappointed to the market. The unemployment will be remained until they find the opportunities in the market.

Q.3

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According to World Robotics 2015, 70% of the global robot sales went to five countries China, Japan, the United States, the Republic of Korea and Germany in 2014.

China will be affected most as the main industry are manufacturer and industrial industry which accounted for 70% of China’s GDP. Robots can work very effectively in these two industries because it required standardised output and the volume of output is large. In fact, the needs of robots is emerging. There are 57,096 industrial robots were sold in 2014 in China, 56% more than in 2013.

Besides China, Japan is the second largest market regarding annual sales of robots.

According to Japan’s Ministry of Economy, Trade and Industry (METI), Japan is the world’s top supplier of industrial robots. It earns about 40 billion yen in 2012 and accounts for around half the market. As a seller of robots, Japan earn a lot due to the emerging of robotics.

Japan also employs lots of robots in the industry due to aging problem. Japan’s workforce is now below 80 million and will decrease further. Robots can help to resolve the workforce problem.