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The Impact Self-Driving Cars Will Have on Employment


The Impact Self-Driving Cars Will Have on Employment


Ian TaylorIan Taylor on Pexels

From the invention of automatic elevators to AI, new technology has always been a double-edged sword when it comes to convenience and people keeping their jobs. No longer a futuristic concept, self-driving cars are no exception. As autonomous driving technology continues to advance, it begs the question: what are all those thousands of taxi, Uber, and bus drivers going to do? At this point, the question is not if jobs will change or disappear, it's how soon, how dramatically, and what societies will do to adapt. 

What are the consequences?

Driving is one of the most common professions in many countries. In fact, an estimated 100 million people are working as professional drivers globally, including truckers, bus drivers, couriers, and ride-share operators like Lyft and Uber. Self-driving vehicles threaten to automate much of this work, translating to tons of jobless people. 

Companies developing autonomous fleets aim to reduce labor costs, increase efficiency, and eliminate human limitations like fatigue. For businesses, it’s a win, but for drivers who rely on those jobs for their livelihood, the consequences could be devastating. Even a partial shift to self-driving fleets could lead to widespread job losses, lower wages due to reduced demand, and fewer entry-level opportunities for people without college degrees.

In addition to transportation, the ripple effect would also be felt in industries that rely indirectly on human-operated vehicles. This includes roadside motels, highway diners, and rest stops, which could see a decline in business as human truckers would no longer need a place to rest. 

Additionally, insurance companies may have to overhaul their entire business model once human error—currently the leading cause of accidents—declines. Laws would need to be changed as it wouldn't be so clear who's to blame for accidents anymore—is it the car's owner, the manufacturer, or the software company? Even law enforcement and emergency responders could see a dip in demand if accidents drop significantly. 

Any up-sides?

a car driving down a street next to tall buildingsTimo Wielink on Unsplas

Fortunately, the employment impact of autonomous vehicles isn’t all negative. While some jobs will disappear, others will emerge. Industries supporting self-driving fleets will still need humans with unique skill sets, including remote vehicle supervisors, sensor technicians, cybersecurity specialists, and engineers trained to maintain complex systems. 

The transition will create new jobs, but they will generally require more technical training, potentially leaving behind workers who don’t have access to education or retraining programs.

Self-driving technology more generally offers plenty of benefits to humanity, including increasing accessibility for disabled and elderly individuals who are unable to drive, expanding their independence, and improving their quality of life. Delivery automation could lower costs for small businesses, and cities redesigned around autonomous transit could create jobs in infrastructure, technology integration, and urban planning.

What's more, taking away the human element of driving allows for greater safety as impairment like drowsiness or driving under the influence would no longer be factors. Algorithms would be trained to cause the least amount of damage in crash situations where a human wouldn't have the same split-second judgment 

The impact of self-driving cars on employment depends on preparation. If governments and companies stay on top of it, invest in education, social programs, and new career pathways, the transition could lead to a more advanced and efficient workforce. If they don’t, the result could be widespread unemployment and economic instability. The moves we make today will help clear a smooth road for self-driving cars. 




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