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“The sustained interest in blockchain jobs is perhaps a sign that job seekers believe non-financial companies will pursue blockchain applications, even if financial companies see cryptocurrencies as a fad,” the company writes in the report.
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New technologies are “encroaching into human skills in a way that is completely unprecedented,” McAfee says, and many middle-class jobs are right in the bull’s-eye; even relatively high-skill work in education, medicine, and law is affected. “The middle seems to be going away,” he adds. “The top and bottom are clearly getting farther apart.” While technology might be only one factor, says McAfee, it has been an “underappreciated” one, and it is likely to become increasingly significant.
Corporate America, for its part, certainly doesn’t seem to believe in the jobless future. If the rewards of automation were as immense as predicted, companies would be pouring money into new technology. But they’re not. Investments in software and IT grew more slowly over the past decade than the previous one. And capital investment, according to Mishel and Bivens, has grown more slowly since 2002 than in any other postwar period. That’s exactly the opposite of what you’d expect in a rapidly automating world. As for gadgets like Pepper, total spending on all robotics in the US was just $11.3 billion last year. That’s about a sixth of what Americans spend every year on their pets.

“We were lucky and steadily rising productivity raised all boats for much of the 20th century,” he says. “Many people, especially economists, jumped to the conclusion that was just the way the world worked. I used to say that if we took care of productivity, everything else would take care of itself; it was the single most important economic statistic. But that’s no longer true.” He adds, “It’s one of the dirty secrets of economics: technology progress does grow the economy and create wealth, but there is no economic law that says everyone will benefit.” In other words, in the race against the machine, some are likely to win while many others lose.
The machines created at Kiva and Rethink have been cleverly designed and built to work with people, taking over the tasks that the humans often don’t want to do or aren’t especially good at. They are specifically designed to enhance these workers’ productivity. And it’s hard to see how even these increasingly sophisticated robots will replace humans in most manufacturing and industrial jobs anytime soon. But clerical and some professional jobs could be more vulnerable. That’s because the marriage of artificial intelligence and big data is beginning to give machines a more humanlike ability to reason and to solve many new types of problems.
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Perhaps the most damning piece of evidence, according to Brynjolfsson, is a chart that only an economist could love. In economics, productivity—the amount of economic value created for a given unit of input, such as an hour of labor—is a crucial indicator of growth and wealth creation. It is a measure of progress. On the chart Brynjolfsson likes to show, separate lines represent productivity and total employment in the United States. For years after World War II, the two lines closely tracked each other, with increases in jobs corresponding to increases in productivity. The pattern is clear: as businesses generated more value from their workers, the country as a whole became richer, which fueled more economic activity and created even more jobs. Then, beginning in 2000, the lines diverge; productivity continues to rise robustly, but employment suddenly wilts. By 2011, a significant gap appears between the two lines, showing economic growth with no parallel increase in job creation. Brynjolfsson and McAfee call it the “great decoupling.” And Brynjolfsson says he is confident that technology is behind both the healthy growth in productivity and the weak growth in jobs.
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Join Accenture Consulting and youll work alongside fellow industry experts to lead transformational projects, and define cutting edge solutions, solving our clients most complex issues. And because our clients span the full range of industries – Including 94 of the Fortune 100 – youll have the opportunity to pursue your passion, hone your expertise and deepen your knowledge. As a consulting practitioner youll work with clients to improve the lives of consumers. Youll affect what people purchase, where they shop and what they drive, and have the opportunity to help create a more connected…
If automation were truly remaking the job market, you’d also expect to see a lot of what economists call job churn as people move from company to company and industry to industry after their jobs have been destroyed. But we’re seeing the opposite of that. According to a recent paper by Robert Atkinson and John Wu of the Information Technology and Innovation Foundation, “Levels of occupational churn in the United States are now at historic lows.” The amount of churn since 2000—an era that saw the mainstreaming of the internet and the advent of AI—has been just 38 percent of the level of churn between 1950 and 2000. And this squares with the statistics on median US job tenure, which has lengthened, not shortened, since 2000. In other words, rather than a period of enormous disruption, this has been one of surprising stability for much of the American workforce. Median job tenure today is actually similar to what it was in the 1950s—the era we think of as the pinnacle of job stability.
However, Indeed reports that interest in blockchain-related roles has endured, with the search term garnering 47 searches per million at the time of the report – only slightly lower than during its February high.
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Meanwhile, Kiva itself is hiring. Orange balloons—the same color as the robots—hover over multiple cubicles in its sprawling office, signaling that the occupants arrived within the last month. Most of these new employees are software engineers: while the robots are the company’s poster boys, its lesser-known innovations lie in the complex algorithms that guide the robots’ movements and determine where in the warehouse products are stored. These algorithms help make the system adaptable. It can learn, for example, that a certain product is seldom ordered, so it should be stored in a remote area.
Nevertheless, automation will indeed destroy many current jobs in the coming decades. As McAfee says, “When it comes to things like AI, machine learning, and self-driving cars and trucks, it’s still early. Their real impact won’t be felt for years yet.” What’s not obvious, though, is whether the impact of these innovations on the job market will be much bigger than the massive impact of technological improvements in the past. The outsourcing of work to machines is not, after all, new—it’s the dominant motif of the past 200 years of economic history, from the cotton gin to the washing machine to the car. Over and over again, as vast numbers of jobs have been destroyed, others have been created. And over and over, we’ve been terrible at envisioning what kinds of new jobs people would end up doing.
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Join Accenture Consulting and youll work alongside fellow industry experts to lead transformational projects, define cutting edge solutions, and solve our clients most complex business challenges. And because our clients span the full range of industries – Including 94 of the Fortune 100 – youll have the opportunity to pursue your passion, hone your expertise and deepen your knowledge. As a Consulting practitioner in the Products industries, youll work with clients to positively impact the lives of consumers, patients, and travelers. Youll affect what people purchase, how they shop and what…
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