Nor does the job market show signs of an incipient robopocalypse. Unemployment is below 5 percent, and employers in many states are complaining about labor shortages, not labor surpluses. And while millions of Americans dropped out of the labor force in the wake of the Great Recession, they’re now coming back—and getting jobs. Even more strikingly, wages for ordinary workers have risen as the labor market has improved. Granted, the wage increases are meager by historical standards, but they’re rising faster than inflation and faster than productivity. That’s something that wouldn’t be happening if human workers were on the fast track to obsolescence.
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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.
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In the tony northern suburbs of New York City, IBM Research is pushing super-smart computing into the realms of such professions as medicine, finance, and customer service. IBM’s efforts have resulted in Watson, a computer system best known for beating human champions on the game show Jeopardy! in 2011. That version of Watson now sits in a corner of a large data center at the research facility in Yorktown Heights, marked with a glowing plaque commemorating its glory days. Meanwhile, researchers there are already testing new generations of Watson in medicine, where the technology could help physicians diagnose diseases like cancer, evaluate patients, and prescribe treatments.
The talking bot can supposedly identify joy, sadness, anger, and surprise and determine whether a person is in a good or bad mood—abilities that Pepper’s engineers figured would make “him” an ideal personal assistant or salesperson. And sure enough, there are more than 10,000 Peppers now at work in SoftBank stores, Pizza Huts, cruise ships, homes, and elsewhere.
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Snagajob is privately held and has raised over $141 million from investors including Adams Street Partners, Baird Venture Partners, C&B Capital, Rho Acceleration, NewSpring Capital, StarVest Partners and August Capital.
Shawn Boyer served as Snagajob’s CEO from the website’s launch in early 2000, to 2013; leading the company from a start-up to national employment network. Boyer was named America’s Small Business Person of the year in 2008 by the Small Business Administration and Virginia Business magazine’s Person of the Year in 2009.
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.
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While many people do hold a full-time occupation, “day job” specifically refers to those who hold the position solely to pay living expenses so they can pursue, through low paying entry work, the job they really want (which may also be during the day). The phrase strongly implies that the day job would be quit, if only the real vocation paid a living wage.
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The contention that automation and digital technologies are partly responsible for today’s lack of jobs has obviously touched a raw nerve for many worried about their own employment. But this is only one consequence of what Brynjolfsson and McAfee see as a broader trend. The rapid acceleration of technological progress, they say, has greatly widened the gap between economic winners and losers—the income inequalities that many economists have worried about for decades. Digital technologies tend to favor “superstars,” they point out. For example, someone who creates a computer program to automate tax preparation might earn millions or billions of dollars while eliminating the need for countless accountants.
Moonlighting is the practice of holding an additional job or jobs, often at night, in addition to one’s main job, usually to earn extra income. A person who moonlights may have little time left for sleep or leisure activities.
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It’s a startling assertion because it threatens the faith that many economists place in technological progress. Brynjolfsson and McAfee still believe that technology boosts productivity and makes societies wealthier, but they think that it can also have a dark side: technological progress is eliminating the need for many types of jobs and leaving the typical worker worse off than before. Brynjolfsson can point to a second chart indicating that median income is failing to rise even as the gross domestic product soars. “It’s the great paradox of our era,” he says. “Productivity is at record levels, innovation has never been faster, and yet at the same time, we have a falling median income and we have fewer jobs. People are falling behind because technology is advancing so fast and our skills and organizations aren’t keeping up.”
Snag is an online employment website specializing in the hourly marketplace. Founded in 2000 with offices in Washington, D.C., Richmond, Virginia, Charleston, South Carolina, and Oakland, California, Snag has been named to Fortune Magazine’s “Great Place to Work” Best Small & Medium Workplaces list for eight consecutive years. Snag has also been named to Washingtonian’s “Great Places to Work” and Deloitte’s “Fast 500”, a ranking of the fastest growing technology, media, telecommunications, life sciences and clean technology companies in North America.
An activity that requires a person’s mental or physical effort is work (as in “a day’s work”). If a person is trained for a certain type of job, they may have a profession. Typically, a job would be a subset of someone’s career. The two may differ in that one usually retires from their career, versus resignation or termination from a job.
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Getting a first job is an important rite of passage in many cultures. The youth may start by doing household work, odd jobs, or working for a family business. In many countries, school children get summer jobs during the longer summer vacation. Students enrolled in higher education can apply for internships or coops to further enhance the probability of securing an entry level job upon graduation.
The expression day job is often used for a job one works in order to make ends meet while performing low-paying (or non-paying) work in their preferred vocation. Archetypal examples of this are the woman who works as a waitress (her day job) while she tries to become an actress, and the professional athlete who works as a laborer in the off season because he is currently only able to make the roster of a semi-professional team.
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Now, it’s possible that some of the productivity slowdown is the result of humans shifting out of factories into service jobs (which have historically been less productive than factory jobs). But even productivity growth in manufacturing, where automation and robotics have been well-established for decades, has been especially paltry of late. “I’m sure there are factories here and there where automation is making a difference,” says Dean Baker, an economist at the Center for Economic and Policy Research. “But you can’t see it in the aggregate numbers.”
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In 2011, Snagajob was named the best small business to work for by the Great Place to Work Institute. Virginia Governor Bob McDonnell visited Snagajob headquarters the day of the announcement to offer his congratulations.
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