New robots developed in New Zealand have neural networks onboard that can test mine tunnels and, like mine inspectors, can detect flaws and risks.  Normal guidance systems for autonomous vehicles depend on GPS, which is not available underground, and so mine robots use ultrasonic and RF signals to identify where they are.  Sandvik’s robots use constant contact with operators above ground via Wi-Fi signals. Rio Tinto is working on an autonomous rig drill that can bore holes and even assess various rock strata on its own.  Drone-based mining is another example of digital technology completely restructuring an industry.

Taking risky human tasks and getting machines to do them is good for curtailing human injuries, but that switch also reduces the number of jobs that humans can do.  Autonomous trucks are displacing decent-paying jobs, a money-saving efficiency for the company but a troubling reality for the unemployed and the consumer economy that depends on their having salaries to spend in markets and stores.  As machines steadily eat away at the human job market, what industry is going to provide new jobs, or are we headed toward steadily higher unemployment?

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Could we soon see an increase?

The number of homes for sale in the U.S. stood at 2.5 million in April, the lowest number in 6 years. Meanwhile, the number of completed new single-family homes available in April was 46,000, the lowest level since record keeping began in 1973. In California, the number of days a home sits on the market fell to 33 in April from 43 a year earlier.

The extreme pullback of new home construction, coupled with the declining volume of existing homes on the market (due in part to homeowners not putting their homes on the market because prices are “too low”) is helping to create some traction in the housing market, and pricing of both new and existing homes is climbing.

Housing has been affecting job searches. It is unlikely we will see a large reduction in the unemployment numbers until unemployed individuals can more easily sell their houses (and not lose a lot of money) and move to where jobs are available.

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With members of the class of 2012 graduating this week across the U.S., it’s interesting to note the challenging economic times they and their immediate predecessors face. While many have noted that the unemployment rate for *all* college graduates is about half that of the general unemployment rate, it is those in the youngest cohort of college graduates who face disproportionate economic difficulties. Even when accounting for education, the effects of the recent Great Recession have been uneven on different age groups.

According to an estimate by Fidelity Investments, a married couple retiring this year should expect their healthcare expenses throughout retirement to total $240,000. Currently, 42 percent of Boomers have less than $25,000 saved for retirement. (Boston Globe, 5/9/12; Esquire, 4/12)

With respect to that group of recent college graduates mentioned above, those young adults shouldn’t expect a wave of career advancement openings to emerge from the mass-retirement of Baby Boomers any time soon. Too many Boomers remain financially unprepared for retirement, especially considering that housing prices haven’t climbed for a decade. Boomers are likely to stay in their jobs longer than expected and remain the driving force of the U.S. economy.

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