Topic A: Shortage of Unskilled Workers in USA
In 2019, we live in a world, where not automatically heading to a two-year or four year university is seen as out of the norm. In the US, there is a strong push for an increase in skilled-labor, leaving many “blue-collar” jobs, many times associated with low skill input,becoming more and more vacant. The article lists agribusiness, traditional manufacturing, and construction as professions with an increasing demand, yet less and less viable applicants.
Because so many of these “blue-collar” jobs are essential parts of maintaining the interdependence of the US economy, many of these industries are turning to automation and other forms of technology to deal with the lack of workers. However, these businesses do not necessarily have the funds to support and develop the technologies needed to maintain their profits. Companies are also considering relocating due to the lack of “unskilled workers” in a particular area, potentially giving a devastating blow to the local economies.
I wanted to introduce this article to demonstrate the differences between skilled and unskilled workers a bit more, and how the differences between the two, especially society's attitudes towards them, influence the economy and job market.
How can technologies make up for the lack of unskilled workers while ensuring a business can afford them?
Should there be a push to change societal attitudes in order to increase the amount of “blue collar” workers?
Does your country have a shortage of unskilled, or even skilled workers? If so, how have you addressed this discrepancy in the past?
Feel free to comment about your nation's answers to these questions, or ask any questions you may have! Looking forward to meeting you all!
Technology is constantly developing, fueled by capitalist markets and breakthroughs in technology. Currently only large corporations can currently get the capital to invest in technologies that automate jobs unfilled by manual labor, however new development is gradually making this technology available to all businesses. For example, look no further than computers which originally were $95,000 for a basic model personal computer. With Moore’s law and the capitalist markets, processors exponentially grew to capabilities of replacing jobs and computers became cheap enough for all businesses to use to enhance their productivity. Computers have even been widely adopted in developing countries due to the lowering costs. Eventually technologies capable of replacing unskilled workers will be widely available to all companies.
ReplyDeleteFrance believes that all professions should be respected, however society is rapidly changing and more jobs being created require higher education. While blue collar workers are still needed, there shouldn’t be an effort to change societal attitudes toward them because the next generation will need to be an educated and flexible workforce that can adapt to the changing workplace. Labor will always be fighting a constant uphill battle against automation. It is too late for the current generation, however a promotion of higher education, of any kind, for the next generation can help make sure they are better equipped for the intellectual jobs that are being created.
France has sustained a 9% unemployment rate despite a major hindrance to business being the unavailability of qualified candidates. This is due to a large skills gap between workers and industries and a business's fear of firing due to France strict labor laws that would make it hard to fire if business was unprofitable. France has started to address this situation by reforming its labor code to provide more flexibility for companies. France has also mandated company investment in work training and provides grants to workers investing in skills training. Streamlining the councils for employee representation and promoting skills training has helped attract more foreign investment and the unemployment rate has dropped below 9% for the first time in 6 years now.
-France
The delegation of Malaysia would like to reaffirm your points in that only large industries have the capital to invest technology to automate jobs unfilled by manual labor. However, Malaysia believes that smaller companies will also be able to implement this technology. Since smaller companies are usually lighter and leaner, they can implement technology faster and cheaper, but are usually unwilling to do so simply because there is some risk associated with it, along with the possibility of having to lay off workers. While technology currently saves employers money and reduces the need for labor, Malaysia believes that pairing this technology with skilled labors will allow for greater productivity and lower costs.
DeleteFurthermore, Malaysia wholeheartedly agrees with your idea of respecting blue collar jobs. While Malaysia believes the US actually requires blue collar works (which can be implemented through the Malaysian policies listed in the post below), Malaysia understands the necessity for a case-by-case implementation of various labor forces.
Finally, the delegation Malaysia would like to express support for a labor code reform similar to the Malaysian 11MP, which would also allow for work and skills training and increase the number of skilled laborers.
We look forward to working with you!
Country: Turkey
DeleteThe delegation Turkey recognizes that in most cases the use of advanced technologies leads to greater productivity and lower costs (ex: the plow) but were also like to remind delegates that automation is not guaranteed to result in economic growth due to the fact that, currently, the implementation of advanced technologies is leading to workers being forced to find jobs in unproductive settings that offer little personal advancement (https://www.nytimes.com/2019/02/04/business/economy/productivity-inequality-wages.html?emc=edit_ne_20190204&nl=evening-briefing&nlid=8266009820190204&te=1). Therefore, member-states should be hesitant and instead of only seeking increased education for skilled labors and instead also encourage people to seek jobs in fields that cannot be easily automated but are needed for the economy as a whole. An example of this would be construction.
The delegation of Turkey is looking forward to working with you all this weekend!
Country: Czech Republic
ReplyDeleteBeing a highly developed nation along with having the EU’s lowest unemployment rate, the Czech Republic has no shortage of workers. The unemployment rate is a mere 2.4%, and about two-thirds of the population completes tertiary education. These two factors are what contributes to the Czech Republic’s massive yet skilled and capable labor force. The Czech Republic is home to multiple company plants, many of them automated, and combined with foreign investments, it allows the workers to become even more advanced. Foreign investment has greatly bolstered the nation’s labor force. Some other EU member states are not as fortunate, and the Czech Repiblic has been putting in investments itself in order to increase the skill of laborers throughout the union.
The delegation of Malaysia is impressed by the minimal rate of unemployment, and would like to acknowledge your massive yet skilled and capable labor force. This economy and labor force is what Malaysia aims for through Smart Tech, SAPs, and Labor Regulation & Legislation. Malaysia also has a few questions regarding your policies. What are your plans for unskilled workers or job education programs? Furthermore, how did you manage to accomplish Malaysia’s goal of Nearshoring, and what were the economic impacts and effects? Finally, how did you stave off a dependency on foreign investment? We hope we will be able to formulate a comprehensive labor resolution together!
DeleteBeing one of the largest and most developed nations in the world, the lack of workers and its impact on the american economy is concerning. In fact, this effect has been monitored worldwide: By 2030, the Global Talent Shortage could rache up to 85.2 million people, leading to $8.5 trillion in unrealized revenue and a shortage of 10.7 million workers in financial and business services.
ReplyDeleteTo counteract labor shortages in the past, UN Bodies such as the ILO, UNWTO, and World Bank have come together and created the Global Jobs Pact initiative, which focuses the attention of decision-makers on employment measures and decent work as the foundation for long-term economic recovery. Furthermore, the ECODOC CSTD Report on building Digital Competencies highlights selected national strategies aimed at increasing digital competencies of countries, including the United States’ Federal Open Data policy, an open government data initiative that contributes to modernizing government and improving the delivery of services provided by government, industry and non-governmental organizations.
To supplant these initiatives, technology can be used in certain areas to aid in the lack of unskilled workers. While most of the displaced jobs will ultimately be jobs no one really wants, technology can help buffer this gradual shift.
For example, we can first implement Nearshoring, or bringing manufacturing closer to the user base of its output, which will allow technology to drive down the cost of production and make domestic manufacturing more competitive. Furthermore, through the implementation of Collaborative Robots, which will create growth potential for industries because machines will handle the 3 D’s (dirty, dangerous, dull), we can aid in the creation of New-collar jobs, or positions that are augmented with automation and AI. These ideas have successfully been implemented via Amazon’s Kiva Systems, where robots move shipping pallets and allow workers to focus on orders and processing instead of transportation.
For an in-depth study to how technology can circumvent the labor shortage, we can look towards the United States’ construction industry, which has lost 2,000,000 skilled workers yet has only made 300,000 new jobs. The issue is the stigma with the construction industry: Young workers don’t see job stability, and schools focus less on trades and apprenticeship programs, pushing instead for 4 yr university study. This leads to employers hiring workers without proper evaluations and in turn creates danger. However, employers have been able to maximize efficiency on site by using machinery to reduce labor and increase productivity, which even helps workers that lack skills. This is done through Smart Technology, which speeds up processes and maximizes efficiency. For example, with Smart Concrete, producers calibrate mixes before being sold and can thus upsell mixes because Smart Concrete allows them to gather data directly from job sites via chips and trackers mixed directly into the concrete as its poured. This has led to a 20% increase in profitability, and has allowed workers to continue to the next phases of tasks of projects instead of waiting for test results.
Programs to help businesses afford technology include Structural Adjustment Programs (SAPs), where regional or international bodies (such as the ILO or World Bank) provide microloans to nations. Countries and industries will be provided with a certain amount of money to achieve a certain goal in a fixed amount of time, and the bodies will conduct annual audits to ensure the proper usage of funds. SAPs will thus allow for businesses to implement technology in a timely and efficient manner, allowing for the development of economies.
(contd.)
ReplyDeleteMalaysia believes we should change societal attitudes, especially in the United States. As highlighted in a previous point, the stigma against “blue collar workers” has led to a shortage of said workers, and as such a change in societal attitude will further help combat the labor shortage.
Currently, Labor Regulation shifts investment away from business that employ unskilled labor towards business that use automation; thus, labor legislation can once again be used to shift towards unskilled labor. With governmental funding emphasizing trade and apprenticeship programs, as well as educational focuses on such programs, we can help reduce stigma and increase blue collar workers.
Malaysia has had a large shortage of both skilled and unskilled workers. Currently, Malaysia requires two times the labor productivity growth as most developed nations to restart its economy, and with the lack of workers, manufacturers have to source for high-quality technology from places like europe and taiwan to upgrade production processes. To combat the lack of skilled workers, Malaysia has set into motion the Eleventh Malaysia Plan (11MP), a 5 year development plan to achieve the goal of Vision 2020 (set forth by the Malaysian Prime Minister). The 11MP is based on the National Development Strategy of Malaysia (MyNDS), and focuses on the development of people-based and capital-based economy, along with the implementation of high impact projects. The 11MP consists of six cores, including Enhancing Human Capital Development for Developed Countries, Strengthening Infrastructure to Support Economic Growth, and Engineered Economic Growth for Increasing Prosperity. The 11MP has set a target for skilled workers to reach 35% of total workforce by 2020 (skilled workers are currently at 28% of the workforce), yet this is still lower than the 50% amount of most developed economies due to a gap between the government’s plan and the actual implementation of the 11MP. Ultimately, Malaysia believes the solution to our problem comes through an increase of automation for low-value processes to reduce reliance on foreign labor, and further calls on the Private Sector to come forward to work with the government and create a sustainable ecosystem for innovation.
The current lag of the talent base of the workforce comes from an overreliance on cheap, unskilled foreign labor, creating Malaysia’s unskilled labor problem. In 2009, a Malaysian governmental report from the economic department warned that 45,000 Malaysian workers could get laid off by lunar new year, and as such, the Malaysian government curtailed the influx of new workers. This dececion, backed by labor groups such as The Malaysian Trades Union Congress, reduced the foreign workforce from 2.2 million (≈ 20% of the workforce) to 1.9 million (≈15% of the workforce). However, this cap wasn’t implemented soon enough, leading to unemployment levels growing from 3.1% in 2008 to 4% in 2009 due to 31,392 Malaysian workers being laid off. The Malaysian dependence on foreign workers for unskilled labor, however, can be traced back to the 1990’s policy of “open gates”. In the Early 1990s, industries had planned to implement labor-saving technology, but since the government allowed for the influx of foreign workers (which was essentially cheap labor), the technology transfer suffered and created an unskilled, labor-intensive economy within Malaysia. Thus, Malaysia seeks to mitigate this issue via the implementation of the 11MP as well as the foreign worker freeze.
While France recognizes that all workers have a role to play in the national economy, a societal change of attitude toward favoring blue collar workers may not be the most ideal way to maintain the interdependence of the US economy. The US economy is continuously being automated in food service, manufacturing, and logistics and thus will need to accommodate the many unskilled workers that are displaced. While France believes all professions should be given their own type of respect, there is undoubtedly a greater need for college educated workers in the face of technological advancement. Countries don’t necessarily have to either rush to automate or prevent it, but either way automation will advance and eventually become cheaper to the point where many jobs are displaced. Automation in Malaysia will of course occur at a slower rate since there's no need to automate when the jobs vulnerable to automation such as unskilled labor jobs are constantly filled by the large workforce. However, the high minimum wage in the United States along with many other costs associated with workers will push companies to automate faster and a societal change of attitude favoring blue collar work may unintentionally send more students into dying careers. To address the workforce skills gap demonstrated not just in Malaysia and France but across the globe, there is a need to push for more employer accountability for workers skills. France has been actively addressing this problem by mandating all private sector employees be provided a personal training account which entitles them to 24 hours of skills development training until a threshold of 120 hours is met with less restrictions on mandatory training hours after. Providing routes for higher education is easier said than done given that many workers in jobs vulnerable to automation have either chosen or been forced to abandon education often as early as primary education in less developed countries. France believes we should provide opportunities for these workers but also stress the importance of education to the next generation of workers to prepare them for the type of jobs that technological advancements will create.
Delete-France
Contrary to your point, Malaysia believes a societal change in attitude for Blue-Collar workers is necessary to actually help drive forward innovation and progress as well as decrease the living gap (such as the wage gap between social classes and professions). As stated by Mike Rise, a scholar at the UCLA Graduate School of Education and Information Studies, through the creation of 3 paths after High School (College-bound, general, and vocational pathway), vocational training began receiving a bad reputation. Since the large majority of students of the vocational training pathway come from working-class families and immigrants, the dynamic between the “lower” social group of blue-collar workers and the “upper”, wealthy white-collar workers who took the college pathway created a cultural bias against vocational training. Often times, it is low-income workers and those in poverty that are forced into the technical pathway; as such, Blue Collar jobs are needed to create a sense of job security for low-income workers. Even with the onset of automation replacing Blue Collar jobs, technical training is still necessary to help the machines operate and oversee their work. Finally, technical careers are actually currently not “dying” – in fact, a study done by Anthony Carnevale, director of the Georgetown University Center on Education and the Workforce highlighted that 20% of technical certificate holders earn 100 -110K more than the average bachelor’s holder, which holds steady over 20 years, providing both low student debt and high financial security.
DeleteTo clarify, Malaysia’s current large labor comes from the 1.9 million foreign workers in our system, consisting of 15% of our labor force, who are willing to take the jobs many malaysians choose not or refuse to fill due to increased stigmatization of unskilled labor. However, this foreign dependency as led to the Malaysian economy developing an overreliance on unskilled foreign labor, created a vortex of creativity and innovation, and prevented progress. As such, Malaysia would like to ensure nations such as the United States avoid this pitfall, and thus would like to reemphasize the need for Blue-Collar workers.
Ultimately, Malaysia agrees with your point in the need for solutions, such as Employer Accountability and the development of Higher education, and would like to further help develop this framework of ideas. Malaysia believes we need Transparency, to flip the system, and fix general education. Senator Marco Rubio along with two democrats, is sponsoring “The Know Before You Go Act”, a bill to share detailed data on the earnings of graduates of specific programs from specific schools to reduce confusion and stigma regarding the job safety and financial security of technical workers. To slip the system, Malaysia believes we should follow Mary Alice McCarthy’s (a senior analyst at the Washington, D.C.-based New America) system: allow students to first gain marketable skills, and then finish general education requirements. This policy will also help make technical work easier and more accessible at lower economic costs, and will help fix the issues with General Education (which concern why certain classes – such as “detective fiction” – satisfy general education requirements, while classes in welding do not. Furthermore, in general to help close the gap between blue and white collar workers. Mike Rose states in his book The Mind at Work that the challenge is how to undo the vocational-academic divide itself, and help emphasize thinking behind the technical skills that students learned, and thus remove the stigma behind vocational training programs.
This debate is interesting, and Malaysia looks forward to what new ideas you will present in committee!
(contd)
ReplyDeleteThese policies, however, continue to generate issues to ponder. For example, the impact of blue collar and unskilled workers plays out differently from nation and nation, and as such, how can we equally implement such policies as well as allow for economic development through the international community? Furthermore, while Malaysia is in the processes of executing the 11MP, the delegation of Malaysia seeks global input as to how SAPs can be safely and ethically implemented in developing nations. Finally, what is the effect of conflicts and warzones, as well as emigration from such nations, on the economy and labor shortages of war-torn nations, and how can this economic decline be resolved with or without the implementation of technology?
Sources:
ReplyDeletehttps://techcrunch.com/2017/03/26/technology-is-killing-jobs-and-only-technology-can-save-them/
https://golmn.com/how-technology-should-be-used-to-save-labor-costs/
https://www.giatecscientific.com/education/how-smart-technology-can-help-you-get-around-labor-shortage/
https://object.cato.org/sites/cato.org/files/serials/files/regulation/2018/6/regulation-v41n2-1.pdf
https://www.thestar.com.my/business/business-news/2016/11/26/malaysias-skilled-labour-shortage/
https://www.nst.com.my/news/exclusive/2018/01/327205/labour-shortage-cameron-highlands
https://www.nytimes.com/2009/09/01/business/economy/01labor.html?mtrref=www.google.com
United Kingdom:
ReplyDeleteThe international community, especially developed nations pushing for increased college enrollment, definitely need an attitude change regarding “blue collar” work. When “ability tracking” was introduced in the 1950s, students were separated and set along paths focused on vocational or academic study to prepare them for careers; however, many people saw this separation being based according to the student’s socioeconomic status. Since the change, conversations and analysis have been conducted to weight the pros and cons of “blue collar” to “white collar work” (knowledge intensive, office-based). Many of these studies have identified a negative pattern of students being pushed along a career path, finding difficulty in the work, and dropping out. With 40% of college students leaving prior to graduation, young people are left indebted and lost. While it is true that college graduates are generally paid better, many are under employed and feel they are not truly utilizing their college education and degrees. American millennials have also begun to understand that advancement within blue collar work is extremely common, improved labor laws make these more labor intensive / hands on jobs safer, and trade training is less intensive and expensive than college.
Technology does have the potential to make up for a lack of blue collar workers, however the technology still needs to be run by people who understand the field of work and know how to ensure sustained productivity. The United Kingdom believes the best strategy would be educating current blue collar workers so they can one day operate the automation that may replace them. Of course technologically savvy college graduates will understand the robotics necessary to run the logistics of a business, but blue collars truly know their work. In the future, many jobs will probably be enhanced with AI because it lessens production costs for the employer and assists employees in becoming more efficient.
As of now, blue collar work is a minor percentage of employment in the UK, however the jobs are still respected and important. The push for college education had a large effect on our country, leading to an effective shift towards white collar work. As of now, the UK’s is focused on “re-skilling” our workers so we can embrace the technological change and the potentials it offers without encouraging human work to be outweighed by automation. This push for a redirected workforce allows for UK businesses to employ people while staying consistent with proper labor rights and productivity. The UK public is also lucky in that production is often aided by government AI Sector Deals which utilize top business and organization donations to implement new automation and technology education.
https://www.forbes.com/sites/nicholaswyman/2015/09/01/why-we-desperately-need-to-bring-back-vocational-training-in-schools/#60df4e5687ad
https://www.forbes.com/sites/gauravsharma/2018/07/11/automation-is-an-opportunity-not-a-threat-says-top-u-k-engineering-academic/#253718af23c6
The Delegation of Malaysia agrees with your points in the need for a change in attitude. To add onto your idea of and opposition for “Ability Tracking”, Malaysia also believes in the need for providing equal training and education so as to create a diverse and productive labor force. This education can be implemented into Malaysia’s previously discussed educational reforms, providing for a long-lasting change from the bottom up and increased productivity levels, as has been proven in Malaysia. Furthermore, Malaysia reaffirms your belief in the need for educating blue collar workers to operate technology, and allow both AI systems and humans to complement each other in completing tasks. Thus, Malaysia looks forward to implementing the Walmart, CVS, and Starbucks training program (WCS) to upskill entry-level employees and help them move within the company, which then encourages loyalty and broadens the company’s skill base). Clearly, it has been successful in Walmart, CVS, and Starbucks, and due to their international presence has boosted GDP internationally. Outside of these 3 companies, however, Linkedin has also provided similar education programs via learning and development benefits, and has also expanded its job search net to find candidates with hard-to-teach soft skills using tools like predictive assessment tools and job auditions. Culminating these ideas under the broader category of education, Malaysia believes we can create educational legislative reform internationally. The delegation of Malaysia looks forward to working with you in committee!
DeleteThe delegation of Canada would like to stress the use of ILO training seminars for these unskilled workers. If workers are to have their jobs taken over by technology Canada strong encourages the use of these seminars. The seminars could train these recently laid off workers to receive an education in other jobs similar to the one they previously had along with training to possibly operate or monitor the machine that had taken over their job.
ReplyDeleteThe delegation of Japan recognizes a need for blue collar workers within its and many other countries' workforce. As of 2018, the Abe administration of Japan has implemented a new amendment that allows for foreign workers to immigrate into the country in order to take up jobs in sectors that currently suffer from labor shortages. From this law change, up to 500,000 blue-collar workers could be allowed in over time, up 40 percent from the 1.28 million foreign workers now forming about 2 percent of the workforce. The new law has created two visa sectors in which skilled and unskilled laborers are differentiated. Within this new system, support organizations have been created that host “technical trainee” events and advising foreign students to work part time within a specific job sector, encouraging future blue collar workers in the process.
ReplyDeleteCountry: Venezuela
ReplyDeleteBeing one of the most developed nations, the United States’ labor crisis is concerning and greatly needs to be addressed. Today, this crisis greatly consists of a lack of unskilled workers. In certain fields which are considered unskilled, the technology could help increase productivity, and this should be utilized in areas with a lack of unskilled workers. According to the World Bank, the unemployment rate for Venezuela was 7.88% in 2018. This may not be a fairly high unemployment rate, but there are difficult issues on labor in Venezuela. Employers can no longer afford to pay wages to so many employees, and this has caused mass layoffs without reason. Those in the working class who are unemployed, receive wages which are near worthless due to the nation’s hyperinflation. In Venezuela, most workers are unskilled workers and using technology would likely cause these workers to lose jobs. Alongside this, technology is not affordable in Venezuela which is another critical issue. Unskilled working fields are frowned upon in the United States of America, and this is a cultural issue which needs to be addressed.
In the United States, there are many societal issues when it comes to careers and professions including the fact that society makes it seem obligatory to go to go two-year or four-year college. In reality, it should be shown that there are different options from taking the path many do. Most developed countries including the USA are mixed economies, and this means that there are various professions needed to support the economy and this means blue-collar workers included. Without these “unskilled” workers, the country’s economy would not be able to sustain itself.
Venezuela is also a mixed economy, although the nation does not substantially depend on skilled workers as the economy of the country is more based on industries which use workers who are “unskilled” such as manufacturing and agriculture. Venezuela mostly consists of unskilled workers, and this is also why too much technology in specific industries could cause workers to be replaced if no workers protection is implemented. Many countries, possibly including Venezuela could benefit from the use of technology to increase productivity, but the methods of implementations and policies would need to be overseen by a subcommittee or panel as different countries have different needs.
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