Welcome!

@DXWorldExpo Authors: Yeshim Deniz, Pat Romanski, Elizabeth White, Liz McMillan, Zakia Bouachraoui

News Feed Item

One in Five Companies Have Replaced Workers with Technology, According to New Research from CareerBuilder and Economic Modeling Specialists Intl

-Majority of These Companies Said Automation Created New Jobs Within Their Organizations

CHICAGO, July 31, 2014 /PRNewswire/ -- Is automation a job killer or creator? Both, according to new research from CareerBuilder and Economic Modeling Specialists Intl (EMSI). In a nationwide survey, one in five companies (21 percent) reported they have deskilled workers, i.e., replaced employees with automation. Among companies with more than 500 employees, the number is 30 percent.

While eliminating jobs, the vast majority (68 percent) of companies who 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. 

The national survey, which was conducted online by Harris Poll on behalf of CareerBuilder from May 13 to June 6, 2014, included a representative sample of 2,188 hiring managers and human resource professionals across industries and company sizes.

Decline and Growth of U.S. Jobs

In separate research, CareerBuilder and EMSI looked at historical acceleration and deceleration of the 786 occupations recognized by the Bureau of Labor Statistics. The analysis uses EMSI's extensive labor market database, which pulls from over 90 national and state employment resources and includes detailed information on employees and self-employed workers.

Since 2002, 257 occupations experienced a decline in employment, roughly one third of all U.S. jobs. At the same time, 483 occupations (61 percent) grew 1 percent 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. Consider these examples:

The Internet

The ubiquitous 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 web sites were established. This represents a 34 percent decline in a field paying $16.17 per hour. 

At the same time, the number of Software Developers and Web Developers in the U.S. increased by 195,000 from 2002 to 2014, paying $43 per hour.

Automation of Data

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, a 16 percent decline in a field paying $14 per hour.

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, a 28 percent increase in a field paying $29.18 per hour.

"Technological advancements have not only increased productivity, but historically have led to an expansion of employment," said Matt Ferguson, CEO of CareerBuilder and co-author of The Talent Equation. "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. One of the greatest challenges the U.S. faces today is sufficiently preparing the workforce for the influx of more knowledge-based jobs that will likely result from progress in robotics and other STEM-related fields (science, technology, engineering and math)."

Industries and Job Types Most Likely to be Affected

Being at the forefront of innovation, Information Technology firms were twice as likely as all employers to say they have deskilled workers at 42 percent, according to the CareerBuilder/Harris Poll survey. Rounding out the top three industries were Financial Services at 27 percent and Manufacturing at 23 percent.

Across industries, 31 percent of employers predicted that certain jobs within their firms will likely be replaced by technology to some degree in the next decade.  The functional areas most likely to be impacted, according to employers, include:

  • Customer Service – 35 percent
  • Information Technology – 33 percent
  • Accounting/Finance – 32 percent
  • Assembly/Production – 30 percent
  • Shipping/Distribution – 25 percent
  • Sales – 17 percent

Man Vs. Machine: When Technology Doesn't Work

While automation has produced greater efficiencies and output, eliminating the human factor can backfire in some cases.  Thirty-five percent of firms that deskilled workers said they hired people back because the technology didn't work out.

Survey Methodology

This survey was conducted online within the U.S. by Harris Poll on behalf of CareerBuilder among 2,188 hiring managers and human resource professionals ages 18 and over (employed full-time, not self-employed, non-government) between May 13 and June 6, 2014 (percentages for some questions are based on a subset, based on their responses to certain questions). With a pure probability sample of 2,188, one could say with a 95 percent probability that the overall results have a sampling error of +/- 2.10 percentage points.  Sampling error for data from sub-samples is higher and varies.

About EMSI

Economic Modeling Specialists Intl., a CareerBuilder company, turns labor market data into useful information that helps organizations understand the connection between economies, people, and work. Using sound economic principles and good data, EMSI builds user-friendly services that help educational institutions, workforce planners, and regional developers build a better workforce and improve the economic conditions in their regions. For more information, visit www.economicmodeling.com.

About CareerBuilder®

CareerBuilder is the global leader in human capital solutions, helping companies target and attract great talent. Its online career site, CareerBuilder.com®, is the largest in the United States with more than 24 million unique visitors and 1 million jobs. CareerBuilder works with the world's top employers, providing everything from labor market intelligence to talent management software and other recruitment solutions. Owned by Gannett Co., Inc. (NYSE:GCI), Tribune Company and The McClatchy Company (NYSE:MNI), CareerBuilder and its subsidiaries operate in the United States, Europe, South America, Canada and Asia. For more information, visit www.careerbuilder.com.

Media Contact
Jennifer Grasz
773-527-1164
[email protected]
http://www.twitter.com/CareerBuilderPR

 

 

 

SOURCE CareerBuilder

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

DXWorldEXPO Digital Transformation Stories
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Behera Rasananda is a technologist, a leader, a key note speaker has more than 20 years experience in across Government, Financial, Heath Care and Insurance Verticals. Mr. Behera has vast experience in Enterprise Cloud and Big Data solutions and Enterprise Architecture. Currently he works closely for Government Solutions on Enterprise Cloud for Federal Government Agency. Scientist Behera managed and partner with clients to make complete end to end solution and Migration to cloud both private sec...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Everyone wants the rainbow - reduced IT costs, scalability, continuity, flexibility, manageability, and innovation. But in order to get to that collaboration rainbow, you need the cloud! In this presentation, we'll cover three areas: First - the rainbow of benefits from cloud collaboration. There are many different reasons why more and more companies and institutions are moving to the cloud. Benefits include: cost savings (reducing on-prem infrastructure, reducing data center foot print, r...
DXWorldEXPO LLC, the producer of the world's most influential technology conferences and trade shows has announced the 22nd International CloudEXPO | DXWorldEXPO "Early Bird Registration" is now open. Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)
Excitement and interest in APIs has skyrocketed in recent years. However, if you ask a room full of IT professionals "What is an API", you will get a wide array of answers. There exists a wide knowledge gap between API experts and those that have a general idea of what they are, but are unsure of what they have been for in the past, what they look like now, and how they can be used to expand your business in the future. In this session John will cover what the history of APIs, what an API looks ...