Economics

Rise of the Robots Speeds Up in Pandemic With U.S. Labor Scarce

They’re everywhere. Soon security bots that look a bit like Star Wars’ R2-D2 will be patrolling some parking lots at the Los Angeles airport.

A Knightscope K5 security robot on Wall Street near the New York Stock Exchange in New York.Photographer: Michael Nagle/Bloomberg
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American workers are hoping that the tight pandemic labor market will translate into better pay. It might just mean robots take their jobs instead.

Labor shortages and rising wages are pushing U.S. business to invest in automation. A recent Federal Reserve survey of chief financial officers found that at firms with difficulty hiring, one-third are implementing or exploring automation to replace workers. In earnings calls over the past month, executives from a range of businesses confirmed the trend.