Hyundai has rapidly increased its market capitalization by 67% in a month, while the National Metalworkers' Union of Hyundai has voiced concerns about rising job insecurity due to automation and AI.
Hyundai Motor Company has experienced a significant surge in its market capitalization, increasing by 67% in just one month, reaching a total of 100 trillion won. However, this impressive growth comes amid rising anxieties expressed by labor groups, particularly the National Metalworkers' Union of Hyundai, which has made it clear that no robots should be allowed into factories without mutual agreement. They argue that while they are not against robots per se, the introduction of automated workers threatens their jobs, stirring feelings of insecurity among employees. The announcement highlights the growing tensions between advancing technology and the workforce it affects.
Additionally, the impact of automation is not limited to the manufacturing sector; it extends to white-collar jobs as well. Companies like Amazon have laid off around 30,000 white-collar employees, translating to roughly 10% of their workforce, citing a drop in profitability linked to the introduction of generative AI systems that have reduced online search traffic substantially. Likewise, the Washington Post has announced layoffs affecting about 38% of its journalists. This trend indicates a broader pattern of job loss and restructuring across various sectors as businesses adapt to new technological advancements, particularly AI.
The specter of AI-induced job loss is alarming, with the International Monetary Fund (IMF) predicting that 40% of jobs could vanish by 2024 due to AI advancements. The toll appears to be heaviest on middle-skilled office roles, as noted by ILO's Employment Policy Director. He points out that advancements in technology might not reduce the total number of jobs, but they do lead to a polarization of the job market: increasing high-wage and low-wage employment while diminishing middle-skilled positions. This trend emphasizes the deepening divide between the rich and the poor, raising critical questions about the future of work and the preparations necessary for the workforce to adapt to inevitable changes in employment patterns.
