UK's poorest to fare worst in age of automation, thinktank warns

The rise of the machine economy risks social disruption by widening the gap between rich and poor in Britain, as automation threatens jobs generating £290bn in wages. Jobs accounting for a third of annual pay in the UK risk being automated, according to the study by the IPPR thinktank. Warning that low-paid roles are in the greatest danger, it urged ministers to head off the prospect of rising inequality by helping people retrain and share in the benefits from advances in technology. The study for the IPPR's commission on economic justice, which features senior business and public figures including the archbishop of Canterbury, called on the government to take a greater role in managing the adoption of robotics, artificial intelligence and other methods of job automation in the workforce. Mathew Lawrence, a senior research fellow at the IPPR, said: "Managed badly, the benefits of automation could be narrowly concentrated, benefiting those who own capital and highly skilled workers. The IPPR estimates that 44% of jobs in the UK economy could feasibly be automated, equating to more than 13.7 million people who together earn about £290bn. Although it doesn't give a forecast for how long this would take, it cited US research which estimates the changes could occur over the next 10 or 20 years. From the collective pay pool worth £290bn, middle-income jobs such as call-centre workers, secretaries and factory workers are likely to be hollowed out. Low-skilled workers could also lose their jobs or face fewer hours from greater levels of automation. At the same time the highest earners and workers able to retrain will gain higher pay thanks to rising productivity – which means more output being generated per hour worked. The research follows similar studies warning of the risks arising from the current rapid advances in technology, which have enabled machines to take on work that was once the preserve of humans. The Bank of England has said as many as 15m jobs in Britain are under threat. Measures called for in the IPPR report include a UK skills system to help retrain those affected by the introduction of machines into the workforce, as well as an ethics watchdog to oversee the use of automating technologies modelled on the Human Fertilisation and Embryology Authority, which regulates embryo research. Ministers are also being urged to consider new models of company ownership in the face of increasing returns to asset owners, because rising automation could result in higher profits for those who own companies - at the expense of workers' salaries. Carys Roberts, a research fellow at the IPPR, said: "Some people will get a pay rise while others are trapped in low-pay, low-productivity sectors.