There’s a lot of concern about technology replacing human labor and eliminating job opportunities, but a recent study by Deloitte indicates otherwise. After evaluating data from all the way back to the 1800s, researches discovered that technology has created far more jobs than it has eliminated. Startups combine technology and innovation, which is why they’re one of the most important sources of job creation today.
In spite of fears about robots replacing humans in the work force, a new Deloitte study reveals that technology is actually a job-creating machine.
Technology’s affect on labor
Technology increases spending power for regular consumers. Increased spending power leads to higher demand for hairdressers, restaurants and other common consumer goods. Fewer and fewer people are making careers out of labor-intensive tasks such as doing laundry or scooping snow by hand. Those jobs are now performed by washing machines and snowplows and those people are free to pursue new career opportunities.
Think of all the jobs that did not exist a few years ago. Today we have App developers, social media managers, Uber drivers, sustainability managers, big data analysts and more. Countless engineers are dedicated to developing new technology such as driverless cars and drones. With mechanical advancements taking over manual labor, people have more time to spend on research and development. This has lead to new medicines and a higher quality of life overall. More efficient farming tools have helped drop the price of food. Bigger household items like TVs, cars, and appliances have also declined, which leaves more money for leisure activities. If people are spending more on vacations, sporting events and hobbies there is an increase of jobs in these areas.
Machine power over manpower
Although machines are replacing some jobs that were typically performed by humans, they typically take on more laborious tasks. Mechanical advancements have lead to a decrease in dangerous and dull jobs and an increase in productivity. Instead of working in manual labor, people have shifted to working in service, care, and education industries.
As technology continues to evolve, the job market evolves with it. In spite of fears about robots replacing humans in the work force, a new Deloitte study reveals that technology is actually a job-creating machine.
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