Effect of Industrial Robots on Employment in China: An Industry Level Analysis

Abstract

China has been the world's largest market for industrial robots since 2013. Industrial robots improve accuracy, safety, and efficiency in industrial production but have a substantial impact on the labor market. This investigation uses the task-based model to explore the relationship between industrial robots and employment across industries. This study uses industrial robot data from the International Federation of Robotics and employment data from the China Statistical Yearbook from 2010 to 2019 to examine robot applications' influencing mechanisms on labor demand in different industries in China. The results show a significant positive correlation between robots' exposure and labor demand for IT, health and social services, science research and technical services, and management of water conservancy and environmental industries. Based on the results, the use of robots promotes high-skilled talent employment and some third-sector employment, like education, food and beverages, utilities, household appliances, and transport. However, multiple regression analysis reveals that the use of robots has reduced employment in traditional industries such as agriculture and mining.