Many are underestimating the fact that smart machines could replace millions of middle-class jobs in the coming decades. One of the main factors behind the slow job recovery of the 2008 recession is that a growing number of robots have been replacing potential jobs. In fact, analysis shows that computers could replace 45 percent of American jobs within the next twenty years. Some studies show that the issue is current while others argue it is negligible until the distant future, regardless though all studies agree that robots will eventually make a widespread and deep impact on the North American job market.

But will it make financial sense for managers to invest in capital rather than labour? If the cost of capital is significantly lower than labour, chances are this idea is very probable. Capital is a much more reliable and efficient means of production, managers don’t have to deal with absenteeism, tardiness, “coffee breaks” or using incentives to motivate employees to their full productivity potential. In addition, managers could vastly reduce their variable costs by investing more on electricity instead of having to pay wages.

Source: http://www.cbc.ca/news/business/are-robotic-smart-machines-behind-the-jobless-recovery-1.2326104

Source: http://www.cooltanarts.org.uk/wp-content/uploads/2013/10/robot.jpg