If robots are designed to make workers more productive, that is not evident so far, with productivity falling at its steepest pace. — Photo by Possessed Photography on Unsplash
Eaton Corporation PLC, for example, is working on 150 different robot installations over the next year and a half in its electrical equipment factories in North America.labor market One possible explanation is the distortions caused by the COVID-19 pandemic. The crisis saw huge shifts in the workforce, including an exodus of workers during the darkest days of the crisis who are only slowly filtering back into jobs. It is normal for workers to be less productive if they are moving into new careers or changing jobs in their existing fields.
This is especially true in sectors adopting entirely new technologies, such as the auto industry's turn toward electric vehicles. A3 found nearly 60% of the robots ordered in the second quarter went to automotive companies. The rush to add robots is part of a larger upswing in investment as companies seek to keep up with strong demand, which remains elevated even as the Federal Reserve has raised interest rates to rein in inflation.