Posts tagged ‘Jobs’
As the map shows, almost all large metropolitan areas can lose over 55% of their current jobs due to automation. The ones that fare better than others include high-tech centers like Silicon Valley and Boston.
Lower income jobs face higher automation risk, the effect on employment will be much more drastic than the effect on wages. MSAs with a high share of low paying jobs will have larger job and wage losses. The researchers emphasize that probability of automation does not equal future unemployment rates: “Technical feasibility does not imply that automation necessarily makes economic sense. And historically, automation went hand in hand with new job creation both in skilled and less skilled labor,” explains Dr. Chen. “However, the speed and the high share of automation in less skilled jobs raises many questions about whether the economy will be able to make up for the expected job losses. They expect that automation will create winners and losers among cities and regions of the U.S.,
|Metropolitan Statistical Area||Share of Jobs Automatable|
|1 Las Vegas-Henderson-Paradise, NV||65.2%|
|2 El Paso, TX||63.9%|
|3 Riverside-San Bernardino-Ontario, CA||62.6%|
|4 Greensboro-High Point, NC||62.5%|
|5 North Port-Sarasota- Bradenton, FL||62.4%|
|6 Bakersfield, CA||62.4%|
|7 Orlando-Kissimmee-Sanford, FL||61.8%|
|8 Fresno, CA||61.5%|
|9 Greenville-Anderson-Mauldin, SC||61.3%|
|10 Louisville/Jefferson County, KY-IN||61.3%|
The White House released a new report this week entitled Artificial Intelligence, Automation, and the Economy, as part of an admirable but very flawed initiative to understand the impact of the new technology on American employees.
The White House said, “Accelerating AI capabilities will enable automation of some tasks that have long required human labor”. The report says some low wage jobs will become obsolete. Research consistently finds that the jobs that are threatened by automation are highly concentrated among lower-paid, lower-skilled, and less-educated workers. This means that automation will continue to put downward pressure on demand for this group, putting downward pressure on wages and upward pressure on inequality. Robots are taking orders and making food; customers are growing accustomed to the lack of human interaction.
These transformations will open up new opportunities for individuals, the economy, and society, on the other hand, has the potential to disrupt the current livelihoods of millions of Americans. Whether AI leads to unemployment and increases in inequality over the long-run depends not only on the technology itself but also on the institutions and policies that are in place.
The advent of computers and the Internet raised the relative productivity of higher skilled workers. Routine-intensive occupations that focused on predictable, easily-programmable tasks—such as switchboard operators, filing clerks, travel agents, and assembly line workers— were particularly vulnerable to replacement by new technologies. Some occupations were virtually eliminated and demand for others reduced. Research suggests that technological innovation over this period increased the productivity of those engaged in abstract thinking, creative tasks, and problem-solving and was therefore at least partially responsible for the substantial growth in jobs employing such traits. Shifting demand towards more skilled labor raised the relative pay of this group, contributing to rising inequality. AI is not a single technology, but rather a collection of technologies that are applied to specific tasks, the effects of AI will be felt unevenly through the economy. Some tasks will be more easily automated than others, and some jobs will be affected more than others—both negatively and positively. Some jobs may be automated away, while for others, AI-driven automation will make many workers more productive and increase demand for certain skills. Finally, new jobs are likely to be directly created in areas such as the development and supervision of AI as well as indirectly created in a range of areas throughout the economy as higher incomes lead to expanded demand. Recent research suggests that the effects of AI on the labor market in the near term will continue the trend that computerization and communication innovations have driven in recent decades. Researchers’ estimates on the scale of threatened jobs over the next decade or two range from 9 to 47 percent.
The report suggests three broad strategies for addressing the impacts of AI-driven automation across the whole U.S. economy:
- Invest in and develop AI for its many benefits;
- Educate and train Americans for jobs of the future; and
- Aid workers in the transition and empower workers to ensure broadly shared growth.
According to Glassdoor research sixty seven percent of U.S. employees said they were not likely to apply for a job at a company where men and women were paid unequally for the same work.
Boston Consulting Group says that by 2025, up to a quarter of jobs will be replaced by either smart software or robots, and a study from Oxford University reveals that 35% of existing U.K. jobs are at risk of automation in the next 20 years.
Tom Davenport and Julia Kirby have researched and wrote a book on this subject called Only Humans Need Apply: Winners and Losers In the Age of Smart Machines. Their bottom line is this: machines are less likely to displace entire jobs, but will more likely replace specific tasks and in the process will augment many jobs.
Jobs Will Be Impacted by Intelligent Technologies
. Presently journalist can tap into algorithms from two firms called Narrative Science and Automated Insights, that use machine learning to write an article in a matter of seconds. The journalist then can focus on writing a more strategic view of the article. In other words, leverage the technology to do what it does best and re-frame the article to a more analytical level.
Wealth advisors are already seeing the power of Analytix Insights, a company that creates investment analytic narratives on more than 40,00 public companies.The job of a wealth advisor is already automated, the critical part of advising clients, establishing trust, and providing personalized expertise is the opportunity for wealth advisors to enhance their skill sets.
The proliferation of automated teller machines has actually led to slightly more bank tellers, due to both bank deregulation and job augmentation as bank tellers now reduce their time on cash handling responsibilities and can be trained to provide relationship based services to bank customers.
Today’s fastest-growing jobs aren’t gigs but jobs requiring creativity, judgment , and personal skills. A November 2016 study that found only a small percentage of US adults, 4.3 percent, had ever made money from an online platform like Uber, TaskRabbit or AirBnb. That same report also showed more than half leave within the year. Glassdoor’s own research found the correlation between those outlandish perks and employee satisfaction isn’t that strong. A stronger correlation exists with health insurance, retirement plans and paid time off. The report predicts that few jobs will be left untouched. After already having transformed manufacturing, automation is making inroads into jobs like long-haul trucking and urban taxi driving.
The Report by Glass Door
A new survey released by salary benchmarking site Emolument revealed that the least educated people in the professional world are also the least concerned about the risk of technology taking their jobs.
Emolument surveyed 900 people working across “several industries and countries” and found that those with no university education were least likely to think that technology is a risk to their job. Just 18% of people with no degree answered yes when asked: “Is technology putting your job at risk?”
Recent research from the University of Oxford’s policy school, the Oxford Martin School titled “Technology at work: V2.0,” revealed that 35% of jobs in the UK are at risk of being replaced by automation, 47% of US jobs are at risk, and across the OECD as a whole an average of 57% of jobs are at risk. In China, the risk of automation is as high as 77%.
Many of the jobs at risk include low-skilled service jobs like call centres or in manufacturing industries
World Economic Forum (WEF) warned that in the mean time, while this is pushing us into “the fourth industrial revolution” and transforming the labour markets beyond all recognition from decades ago, it will lead to a net loss of over 5 million jobs in 15 major developed and emerging economies by 2020. This includes countries like Australia, China, France, Germany, India, Italy, Japan, the UK, and the US.