Is automation a job killer or creator?
Both, according to new research from CareerBuilder and Economic Modeling Specialists Intl. (EMSI).
In a nationwide survey, 21% reported they have deskilled workers, (i.e., replaced employees with automation). Among companies with more than 500 employees, the number is 30%.
While eliminating jobs, 68% of companies that have replaced workers with automation said their adoption of new technology resulted in new positions being added in their firms. Thirty-five percent of companies that deskilled workers said they ended up creating more jobs in their firms than they had prior to the automation.
In separate research, CareerBuilder and EMSI looked at historical acceleration and deceleration of the 786 occupations recognized by the Bureau of Labor Statistics.
Since 2002, 257 occupations experienced a decline in employment, roughly one-third of all U.S. jobs. At the same time, 483 occupations (61%) grew 1% or more. The hourly earnings for the growing occupations were nearly $2 higher than the declining occupations.
While some of the losses and gains can be attributed to economic cycles and globalization, arguably automation has also had a significant influence on employment shifts.
The use of the Internet negatively impacted employment in a variety of areas. Travel agents lost more than 38,000 jobs from 2002 to 2014 as a slew of automated travel websites were established.
However, the number of software and web developers in the U.S. increased by 195,000 from 2002 to 2014.
The automation of data collection and reporting also claimed its fair share of casualties. Data entry keyers lost more than 43,000 jobs from 2002 to 2014.
At the same time, the widespread adoption of using big data to make smarter business decisions and develop better products and services created a big demand for people who know how to interpret data and make it meaningful for organizations. Market research analysts added more than 99,000 jobs from 2002 to 2014.
“Technological advancements have not only increased productivity, but historically have led to an expansion of employment,” says Matt Ferguson, CareerBuilder’s CEO. “While automation may eliminate some jobs, it also creates other jobs that are higher paying and lifts the standard of living for the economy as a whole.”
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