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Retail Jobs Face Crisis Amid Surge in Technology Use

August 07, 2024 | California State Assembly, House, Legislative, California



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This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »

Retail Jobs Face Crisis Amid Surge in Technology Use
In a recent government meeting, a leading economist presented alarming findings on the impact of technological advancements on retail jobs, particularly focusing on cashiers, online order fillers, and stockers. The economist, who has dedicated over 40 years to researching labor conditions, highlighted a significant decline in cashier positions due to the rise of self-checkout systems. Between 2019 and 2022, grocery store cashier employment dropped by 14%, while general merchandise stores saw a staggering 23% decrease in cashier roles, despite overall employment growth in these sectors.

The economist's research, which included extensive interviews with retail employees and managers, revealed that self-checkout kiosks are increasingly replacing human cashiers, with managers expressing a preference for the reduced payroll costs associated with this technology. Additionally, new surveillance technologies, such as Walmart's missed scan system, are being implemented to monitor cashier performance, raising concerns about privacy and job security.

The presentation also addressed the overwhelming surveillance faced by online order fillers, who are tracked meticulously through handheld devices and smart glasses. This level of monitoring extends to stockers, with retailers employing numerous cameras and AI-based software to oversee store operations. The economist noted that while these technologies aim to enhance efficiency, they often malfunction, leading to frequent operational glitches.

To address these challenges, the economist proposed three key public policy recommendations: implementing technology impact assessments for major changes, establishing transparency and privacy rights for workers and consumers, and limiting the use of self-checkout systems, which are detrimental to job security and customer experience. The economist emphasized the need for regulatory measures to prevent a race to the bottom in labor standards as retailers prioritize cost-cutting over service quality.

The meeting underscored the urgent need for policymakers to consider the implications of rapid technological change in the retail sector, advocating for a balanced approach that protects both workers and consumers.

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