Welcome!

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.

Latest Stories
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...