EU Commissioner for Social Affairs Nicolas Schmit does not believe in a huge increase in unemployment as a result of the rise of artificial intelligence in Europe. The upheavals would “of course lead to the disappearance of jobs, but jobs would also be created,” he said on the sidelines of a working visit to Vienna. To prevent unemployment, politicians and businesses must master emerging technologies and invest in the training of skilled workers.
AI will only lead to high unemployment if Europe does not use the technologies to keep industry and services at a high level of competition. “If we don’t integrate these technologies, I am sure there will be unemployment. Because then Europe will decline economically,” Schmit told journalists on Thursday. The Social Commissioner mentioned the field of cyber security as an example of technological change. “We already need tens of thousands, if not hundreds of thousands, of cybersecurity experts that we don’t have.”
Schmit also sees potential in AI
According to Schmit’s presentation, it is about seeing technology as an opportunity and closing the qualification gaps in the labor market. He also emphasized that artificial intelligence can also help the economy achieve productivity gains and offset demographic changes. He is optimistic that technology-related productivity increases will ultimately ensure that European countries can continue to finance the welfare state in the future.
Technological change is also an issue in platform work, such as food delivery or driver services. In this context, a directive is being developed at European level with the aim of improving the position of employees. More transparency is needed here to make algorithm-based decisions that affect their work understandable and to create opportunities to appeal them. Moreover, according to Schmit, the regulations must ensure that those affected are removed from bogus self-employment and are given the same rights as employees – such as a statutory minimum wage.
The politician sees progress on salaries in Europe, especially in low-wage countries, where standards have recently been equalized to some extent. Minimum wages have recently risen in some countries, although this has not led to real wage increases in many places due to high inflation. In Austria, minimum wages or wages in almost all industries are regulated by collective agreements. However, there is no legal minimum wage.
Schmit praised the Austrian wage-setting model as a pioneer for Europe, especially because the coverage of workers in the rates was particularly high. Overall, Austria makes an important contribution to the European Union’s social and employment policies. The country is promoting a “culture of social dialogue”, he said, referring to the efforts of people like Othmar Karas (ÖVP) or the president of the European Trade Union Confederation (ETUC), Wolfgang Katzian.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
