Meaning ● Labor Polarization, within the SMB landscape, describes the increasing division of the workforce into high-skill, high-wage positions and low-skill, low-wage roles, often driven by automation implementation. It directly affects SMB growth strategies as it reshapes workforce needs and necessitates strategic investment in employee training or upskilling programs. This dynamic can amplify wage inequality, reduce workforce cohesion, and pose distinct implementation challenges for SMBs looking to leverage new technologies.● SMBs encounter labor polarization when automation reduces the demand for mid-skill jobs, forcing employees into lower-paying service roles or creating increased demand for specialized technical experts. Businesses planning automation must consider the societal impact and address any internal skill gaps. ● Successfully addressing labor polarization will impact the long-term growth and success of the Small and Medium-sized Business.
