In their 2025 article “Robots and Non-Participation in the United States: Where Have All the Workers Gone?” published in the ILR Review, Giuseppe Di Giacomo and Benjamin Lerch examine how industrial automation has contributed to the long-term decline in U.S. labor force participation. Drawing on extensive data from the U.S. Census, the American Community Survey, and the International Federation of Robotics, they provide a detailed picture of what happens to workers who leave the labor force as automation expands.
Their findings reveal how deeply robots have altered the American labor market. Between 1993 and 2014, the number of industrial robots in the United States increased fivefold, rising from less than half a robot to more than two robots per thousand workers. This transformation displaced thousands of employees, particularly in manufacturing-intensive regions such as the Midwest. The authors estimate that each additional robot led to a reduction of about four workers from the local labor force. Even more revealing is what happens to those displaced.
The study identifies several margins of adjustment that explain where displaced workers go. Around eight percent of those leaving the labor force enroll in college or other educational programs, most of them younger workers seeking new qualifications. About ten percent begin receiving disability benefits, suggesting that health deterioration or the use of disability insurance as a substitute for unemployment benefits plays a role. Nearly forty percent choose early retirement, primarily among older and less-educated men. The remaining non-participants depend on the income of household members or on personal savings, which shows how family and private resources help many who leave employment involuntarily.
The effects are not equally distributed. The impact of robots is strongest among men without a college degree and among racial or ethnic minorities who are overrepresented in routine and automatable jobs. The authors also find evidence that automation has worsened health outcomes in affected areas. It has increased hospitalizations related to mental disorders and substance abuse, linking economic displacement to psychological and social stress.
The research highlights that automation does not simply change the structure of employment but transforms entire communities. While some individuals return to education and reskilling, many face barriers that prevent them from reentering the labor market, leading to long-term declines in participation and health. Di Giacomo and Lerch emphasize that policymakers need to go beyond retraining initiatives. They should design comprehensive strategies that support workers during technological transitions and strengthen the interaction between humans and machines through education and on-the-job learning.
The study “Robots and Non-Participation in the United States: Where Have All the Workers Gone?” by Giuseppe Di Giacomo and Benjamin Lerch was published in ILR Review here (2025).