We’ve all pressed “1” on our phones during a call, whether it’s for customer support, a service issue, or just to get through to someone. It’s become a regular part of our day-to-day lives, one we hardly think about anymore. At times it’s convenient, but many times it can also feel frustrating and impersonal. Still, that robotic voice on the other end has become something we’ve all had to adjust to.
However, It wasn’t always like this. Not too long ago, when you pressed “1,” you’d be connected to a real person. Back then, mobile companies hired actual customer service executives. But as those companies grew, humans were replaced by machines, and that’s where we find ourselves today, talking to a bunch of 1s and 0s more than actual people.
Just ten years ago, call centers and BPOs were buzzing with fresh graduates starting their first jobs. The demand for customer service grew as the economy expanded, but strangely, the number of real people hired for these roles hasn’t kept up. Slowly, computers have taken over the jobs that humans used to do. If you’ve called to inquire about something or asked for help with a simple task, chances are, it was a bot on the other side handling it.
But without automation, the world would be in a tough spot. The demand for human labor to meet service needs would be overwhelming, and companies would be spending way more on staffing than they do now.
When you watch the business channels like CNBC or Wall Street, you see companies becoming billion-dollar giants. Amazon, Facebook, and Twitter, to name a few, have grown massively in revenue. But here’s the kicker: many of these companies have reduced their workforce. Their revenues continue to climb, but the number of employees hasn’t. In fact, in some cases, it has gone down.
Across every industry, the revenue per employee has skyrocketed. So while businesses are becoming more profitable, they’re doing it with fewer people. That’s why we can say:
“A rise in unemployment doesn’t necessarily mean the economy is in trouble.”
Two Big Reasons for Unemployment:
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Robots
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Artificial Intelligence (AI)
Let’s talk about robots.
How Robots Are Changing the Job Market
1. The Rise of Industrial Robots
Every year, more and more robots are being installed in factories and industries around the world. To put it in perspective, back in 2011, 166,000 industrial robots were installed globally. In 2023, that number reached a staggering 553,000. That’s over half a million robots taking on jobs that humans used to do.
If each robot replaces three workers, that means 1.5 million people are losing their jobs every year. And when you consider their families, it’s not just 1.5 million individuals—it’s affecting the livelihoods of around 5 million people annually.
2. China’s Role in Automation
Nearly half of the world’s robots are installed in China each year. With one-sixth of the world’s population, the rapid rise in robot installations is bound to have a huge impact. It’s not just China, India is also ramping up its automation efforts. With two of the world’s largest populations moving towards robotic automation, millions of people are at risk of losing their jobs faster than ever before.
3. Growth of Robots in Asia
Asia, which is home to roughly 60% of the world’s population, is seeing a rapid rise in robot use, with installations growing by more than 50% annually. This region, with its massive workforce, is facing an inevitable wave of job displacement.
Robots in the Service Sector
It’s not just industrial robots; robots are now entering service industries like hospitality, transportation, and agriculture—sectors that have traditionally relied on human labor, often unskilled or semi-skilled. Here’s how fast things are changing:
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Hospitality: Robots are taking over tasks like room service, check-ins, and even restaurant services, with a growth rate of 125%.
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Transport & Logistics: Think of robots sorting and delivering packages, or drones flying over cities, with a 44% growth rate.
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Agriculture: Robots are now working the fields, harvesting crops, and maintaining farms, growing by 18%.
These industries are some of the most labor-intensive ones out there. And the reality is, they’ve provided work for people who might not have other options—especially for those who are unskilled or semi-skilled. Now, those jobs are vanishing.
Just a few years ago, the idea of robots delivering food, drones dropping off medicine, or driverless cars seemed like a far-off future. Today, it’s here, and we’re only seeing the beginning. Robots now greet you at hotel receptions, clean drains, paint walls, and even go to war.
It’s hard to imagine how much further we’ll go in the next decade, but the one thing that is clear is that automation is moving fast, and it’s reshaping the job market at a speed we aren’t prepared for.
What was once designed to make life easier and safer is now creating chaos for millions of people. With automation growing in sectors that employ some of the most vulnerable populations, we’re facing tough challenges ahead. Robots, originally built to assist humans, are now contributing to a rising unemployment crisis that affects the entire world.
