Technology Impact on Jobs- New research by MIT economist David Autor sheds light on the complex relationship between technology and employment. The study, unlike previous efforts, analyzes both job creation and destruction by technology throughout U.S. history since 1940.
Unearthing “Augmentation”: A New Metric for Job Creation
Traditionally, research focused solely on job losses due to automation. Autor’s team introduces the concept of “augmentation,” where technology expands the tasks humans can perform. Their method analyzes tens of thousands of U.S. census job categories alongside U.S. patent text to uncover these connections.
Automation on the Rise, Augmentation Lags
The study reveals a crucial trend: since 1980, automation has outpaced augmentation in job creation. While new work categories emerged (60% of jobs since 1940), automation displaced workers from sectors like manufacturing (cabinetmakers, machinists) faster than new fields (industrial engineers) could absorb them.
The Widening Skills Gap and Bifurcated Job Market
The research suggests this trend has exacerbated income inequality. Technological advancements favor highly educated professionals who can navigate the high-paying sectors of the “new work” landscape. Conversely, the middle class shrinks as automation eliminates mid-skill jobs.
AI: A New Frontier with Uncertainties
The study acknowledges the difficulty of predicting the future. Artificial intelligence (AI) presents a unique case. Unlike past innovations that replaced manual labor, AI might target high-skilled professions but also enhance decision-making tasks. Autor emphasizes the need for further research to understand how best to utilize AI’s potential.
A Foundation for Future Studies
This research breaks new ground by quantifying job augmentation. Autor believes it paves the way for a deeper understanding of technology’s impact on employment. While the methods require refinement, the study offers valuable insights for navigating the evolving job market shaped by technology.
