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.,
Research economists fear that automated, self-driving vehicles will have a negative impact on those that are deeply tied to traditional transportation business models and practices.
There are 1.7 million professional truck drivers in the United States and an additional 1.7 million operators of other commercial land vehicles. Policymakers must prepare for the possible elimination of many of these jobs.
The Center For The Future of Work intends to address the challenge by bringing economic expertise together with some of the world’s leaders in autonomous vehicle technology to forecast where and when these individuals might be displaced from their current jobs. With necessary data, they can begin to design policies that could better improve the dislocation of these workers, and have these policies in place before the disruptions emerge. A Heinz College student team is currently collaborating with the New America Foundation to create the first draft of a map in space and time that forecasts the potentially significant job losses associated with the commercial deployment of these technologies.
Hybrid truck and blue electric car on wireless charging lane
On average, a woman earns 21% less than her male counterpart. That gap can be larger or smaller depending on the state someone lives in. The biggest wage gap in the nation is in Louisiana. 21 states in the country currently have gender pay gaps that are larger than the national average. Washington, D.C. has the smallest pay gap at 10.4%, which means that women earn an average of 10.4% less than men in the area.
Women of color face the biggest pay gap when compared to white men
Image: Skye Gould/Business Insider
Black and Hispanic women are most affected by the wage gap, especially when compared to white men, who make up the largest demographic segment of the workforce, according to the Senate report.
Asian women face the smallest wage gap – they earn 84% of what white men earn, resulting in a pay gap of 16%. White women earn 75% of what white men do, while black women earn 65% and Hispanic women earn 55%.
The only income source through which women age 65 and up make nearly the same as what men over 65 make is Social Security.
Women with children are penalized, while men with children are rewarded
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.
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 Obama administration has called on U.S. states to ban agreements that prohibits many workers from moving to their employers’ rivals, saying it would lead to a more competitive labor market and faster wage growth.
The administration said so-called non-compete agreements interfere with worker mobility and states should consider keeping companies from requiring low-wage workers and other employees who are not privy to trade secrets or other special circumstances to sign them.
Biden also mentioned that a salesman in Connecticut who was laid off and forced to spend his retirement savings because he was prohibited from accepting other sales jobs.
“(Workers) can’t reach their true potential without freedom to negotiate for a higher wage with a new company, or to find another job after they’ve been laid off,” Biden said.
.The problem drew attention from some lawmakers and advocacy groups in June when the attorney general of Illinois filed a lawsuit claiming non-compete agreements signed by employees of fast-food franchise Jimmy John’s were unlawful. The company said it would stop using the agreements in order to settle the case.
The Obama administration on Tuesday also urged states to ban non-compete agreements that are not proposed before a job offer or promotion is accepted and said employers should not be able to enforce the agreements when workers are laid off.
The White House said 20 percent of U.S. workers are bound by non-compete agreements, including 14 percent of those earning less than $40,000 per year.
Apple released updated diversity figures indicating it has made slight but steady progress in hiring more women and underrepresented minorities — and ensuring those employees are paid the same as their white male counterparts. While Apple’s progress has been slow with regard to hiring, it is making more substantial changes to how it compensates individuals. According to the report, the company has remedied pay gaps between white and nonwhite employees and men and women in the US.